The world’s top five major oil companies are expected to record record profits for 2022 in the coming days, with about $200 billion in combined annual profits thanks to the jump in oil and gas prices last year.
This year, earnings at ExxonMobil, Chevron, BP, Shell and TotalEnergies are set to be about a quarter lower than the combined earnings of 2022, but will still be $150 billion for 2023, analysts say.
The record quarterly profits reported by major companies for the second and third quarters of 2022 drew sharp criticism from the White House, which rushed to lower gasoline prices from the record levels recorded in June. The Biden administration has accused Big Oil of “war profiteering” and called on the companies to invest in more supplies or “face higher taxes.” In Europe, record profits are already subject to unexpected taxes, which ExxonMobil has done challenged in court.
The top five oil and gas companies at the end of January and early February are expected to report 2022 earnings combined of $200 billion, according to preliminary estimates compiled and cited by S&P Capital IQ. financial times. Fourth-quarter earnings will still be well above year-ago levels, although they are below record quarterly earnings for Q2 and Q3.
Big Oil’s 2023 earnings are set to fall from the 2022 record to about $150 billion, which — despite the drop — would be the second-highest earnings percentage for Big Oil, according to S&P Capital IQ’s forecast.
Related: Clean Energy Investment to Reach $1.1 Trillion in 2022
For 2022, US Incredibles alone is set to post a combined annual profit of Almost 100 billion dollarsAnalysts say.
Exxon is set to post a record $56 billion in profits for 2022, while Chevron’s profits are expected to top $37 billion, also a record, according to estimates compiled by S&P Capital and cited by S&P Capital. financial times.
Although oil prices traded below $90 a barrel in the final weeks of 2022 and year-on-year prices increased by only about 10% last year compared to 2021, high volatility and frequent spikes above $100 a barrel helped all oil companies, including the largest ones. . Integrated US companies are reporting record or near-record quarterly earnings and cash flow.
The industry, a top performer in the S&P 500 over the past year, has boosted its dividend and stock buybacks in recent quarters thanks to massive cash inflows. Its earnings are set to lead 2022 earnings growth for all 11 sectors of the S&P 500.
The energy sector is expected to post the highest annual profit growth of all 11 sectors at 151.7%, John Butters, vice president and chief earnings analyst at FactSet, said in a statement. Report Last month.
“The energy sector is also expected to be the largest contributor to earnings growth for the S&P 500 for 2022. If this sector is excluded, the index is expected to post an earnings decline of -1.8% instead of a 5.1% earnings growth,” noted Butters.
The decline in oil and gas prices in the fourth quarter will affect the fourth-quarter earnings of major companies, but refining has held firm. LNG trading in major European companies is also expected to have helped major oil companies in the first quarter from October to December.
Early this month, Exxon He said In the SEC report, lower oil prices could have a negative impact of up to $1.7 billion on fourth-quarter earnings, while lower natural gas prices could have a negative impact of up to $2.4 billion. These negative impacts will be partially offset by the positive contribution of derivative gains of up to $1.5 billion.
In Europe, Shell said trading and optimization is expected in its integrated gas and LNG division much higher In the fourth quarter of 2022 compared to the third quarter, despite the decline in production volumes.
Although the profits of the major companies for the fourth quarter and 2023 are expected to decline from the record high levels witnessed in the previous quarters and the whole of 2022, profits this year will still be huge compared to the years before 2022. Analysts expect that the major oil companies will continue to strive behind her. To reward shareholders with the cash surplus, much to the chagrin of the Biden administration.
Major American Chevron announce This week, a $75 billion stock buyback program with no set end date prompted criticism from the White House.
White House Press Secretary Abdullah Hassan He saidCommenting on the news, “For a company that claimed not so long ago that it was ‘working hard’ to increase oil production, distributing $75 billion to wealthy CEOs and shareholders is certainly an odd way of showing that.”
By Tsvetana Paraskova for Oilprice.com
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