ExxonMobil’s profits in the first quarter of 2023 doubled due to the increased demand for oil and gas and cost-cutting measures, resulting in a record $11.4bn profit despite falling oil prices and paying $200m in windfall taxes in Europe.
BBC reported that the energy giant’s profits included a $3.4bn after-tax reduction to exit Russia. The rise in profits was attributed to strong production growth from new offshore developments and refining facilities.
Meanwhile, ExxonMobil faces criticism about how much it has returned to shareholders due to high oil and gas prices, but it said shareholders would receive $8.1bn, including dividends and $375m in share buybacks.
The Chief Financial Officer, Kathryn Mikells, said, “We delivered a first-quarter record despite the fact that energy prices and refining margins are softening a bit.”
According to the report, ExxonMobil is in a legal case with the European Union. It sued the European Union to stop its new windfall tax on oil firms.
The firm has also accused Brussels of exceeding its legal authority and calling the measure “counter-productive.” The company argued that the tax would discourage investment.
Its competitor, Chevron, also reported a 5% increase in profits, making nearly $6.6bn between January and March, paying a $130m “energy profits levy” in the UK.
Chevron, ExxonMobil’s rival, reported an increase in profits, making nearly $6.6bn between January and March, paying a $130m “energy profits levy” in the UK.
Meanwhile, Shell and BP will also be reporting their latest results soon.