Profits surge at Exxon and Chevron as economies rebound from pandemic

Profits surge at Exxon and Chevron as economies rebound from pandemic

Profits surged at ExxonMobil and Chevron, America’s two oil supermajors, in the second quarter as the economic reopening drove energy prices higher, marking a big turnround from a crash last year that inflicted huge financial losses on the industry.

Exxon’s $4.7bn quarterly net profit — the most in more than six years — easily beat Wall Street expectations and was up from a $1bn loss in the same quarter last year. Chevron reported quarterly net earnings of $3.1bn, also beating analyst expectations, and marking a sharp reversal of fortunes from a year before when it lost $8.3bn.

“Positive momentum continued during the second quarter across all of our businesses as the global economic recovery increased demand for our products,” said Darren Woods, Exxon’s chief executive.

Exxon said it was the best-ever quarter for its chemical and lubricants business amid booming demand and high prices for things such as plastic as the economy gathered momentum.

The strong earnings come weeks after the oil supermajors lost a series of closely watched climate-focused shareholder votes and have been under mounting pressure to step up investment in low-carbon energy. Exxon lost one of the fiercest proxy fights in corporate American history after the tiny hedge fund Engine No