ExxonMobil, one of the largest oil and gas companies in the world, has reported record profits in the first three months of 2023, with its earnings more than doubling compared to the same period last year.
The US energy giant posted a profit of $11.4 billion in Q1 2023, up from $5.5 billion in Q1 2022, according to its latest financial report.
The company attributed the impressive results to increased demand for oil and gas, as well as cost-cutting measures. ExxonMobil also announced that it would pay out $8.1 billion in dividends and $375 million in share buybacks to its shareholders.
Despite facing criticism over its returns to shareholders, ExxonMobil reported strong production growth, driven by the start-up of new offshore developments and refining facilities. The company’s Chief Financial Officer, Kathryn Mikells, stated that the biggest contributor to the better-than-expected earnings was the increase in production.
ExxonMobil’s success follows a similar trend among US energy firms, with rival company Chevron also reporting an increase in profits, making nearly $6.6 billion between January and March 2023, up 5% from the same period in 2022.
However, both companies faced windfall taxes in Europe, with ExxonMobil paying $200 million and Chevron paying a $130 million “energy profits levy” in the UK.
ExxonMobil is also currently involved in a legal dispute with the European Union (EU) over its new windfall tax on oil firms.
The company is suing the EU, accusing Brussels of exceeding its legal authority and arguing that the tax would discourage investment.
As Shell and BP prepare to report their latest results, ExxonMobil’s success raises questions about the future of the energy industry and its impact on the environment.
Despite the increasing demand for oil and gas, pressure is mounting on companies to reduce their carbon footprint and invest in renewable energy sources.
