Five major oil firms report $56.3 billion in quarterly profits

Gasoline and diesel prices at the pump have risen sharply for American drivers, a trend that coincides with a surge in earnings for the largest global oil companies. The cost of living remains a top concern for voters in the United States as the nation prepares for midterm elections.

Five major oil companies reported combined adjusted net income of $56.3 billion for the third quarter, according to data compiled by Bloomberg. This figure represents the third-highest combined earnings on record. The companies include ExxonMobil, Chevron, BP, Shell, and TotalEnergies.

Refining operations drove the profit spike. ExxonMobil’s refining division earned a record $9.05 billion during the quarter, nearly five times higher than the same period last year. Chevron’s refineries generated $4.93 billion in profit, also a company record and four times the previous year's figure.

The profit surge stems from a roughly 60% increase in international oil prices since the United States and Israel attacked Iran in late February. Conflicts in the Persian Gulf and strikes in Russia have sidelined about 10% of the world’s fuel-making capacity. This reduction in supply has handed enormous profits to operational plants.

ExxonMobil reported adjusted earnings of $4.23 per share, which exceeded the average analyst estimate by 10 cents. The company raised its dividend for the 44th consecutive year and pledged to maintain $20 billion in annual buybacks. Chevron reported net income of $5.28 per share, beating estimates by 35 cents. The company kept buybacks at $2.5 billion for the quarter and used the remaining profits to reduce debt.

Executives described the results as a reward for increased production rather than a one-time windfall. Neil Hansen, ExxonMobil’s chief financial officer, stated that the company has increased Gulf Coast distillate production by 40% since 2019. He said the firm is putting more diesel on the market in a strained environment. Darren Woods, ExxonMobil’s chief executive, added that the company remains focused on breaking out of the commodity cycle.

Mark Nelson, vice chairman of Chevron, told investors that margins would eventually moderate as refinery runs recover. He noted that export flows need to increase to stabilize prices. Chevron is on track to produce 300,000 barrels a day from Venezuela by the end of this year, an increase of 20% from a year ago. The company plans to double that amount by the early 2030s.

Stock prices for the five companies rose in early trading following the reports. ExxonMobil shares climbed as much as 2.8% in New York, while Chevron advanced 2.2%. BP shares rose 1.8% in London. Analysts noted that the companies resisted pressure to boost share repurchases, a decision that may reflect the political optics of large buybacks during an energy crisis.