ExxonMobil and Chevron – two of the partners in Guyana’s lucrative Stabroek Block – are set to report their strongest quarterly profits in years.
Reuters on July 3rd reported that after months of Americans complaining about pain at the pump, ExxonMobil (XOM.N)
and Chevron (CVX.N) are expected to report second-quarter earnings in the coming weeks that are more than triple first-quarter levels.
Oil prices jumped after the U.S.-Israeli war on Iran began in late February and global fuel supplies tightened.
Reuters said that oil companies’ profits are forecast to rise to their highest levels since 2022. The expected bonanza could complicate the normally warm relationship between US President Trump and the oil industry, an important financial backer of Trump and the Republican Party.
Analysts expect Big Oil’s second-quarter earnings to be the strongest since 2022, when Russia’s invasion of Ukraine roiled energy markets.
According to analyst estimates compiled by LSEG, ExxonMobil is expected to report about US$15.9 billion in adjusted net income, more than triple its first-quarter earnings. Chevron is forecast at about US$9.9 billion, also more than triple its prior quarter.
Reuters said that part of the increase will likely reflect a reversal of first-quarter accounting losses tied to derivatives used to hedge crude and refined product exposure. But analysts say the broader gains come from stronger market fundamentals.
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