Foreign oil company profits double with assist from Trump's moves: NYT
Major energy companies are reaping enormous profits from the ongoing Strait of Hormuz stalemate triggered by Donald Trump's war on Iran, with European oil giants reporting dramatic earnings surges while American producers sit on the sidelines, the New York Times is reporting.
British energy giant Shell reported robust first-quarter profits Thursday, with adjusted earnings soaring 24 percent to $6.92 billion — more than twice what the company earned in the previous quarter and significantly higher than analyst expectations.
In a statement, Shell's chief executive, Wael Sawan, attributed the windfall to an "unprecedented disruption in global energy markets," with oil prices briefly trading above $126 a barrel last week.
Shell is not alone in profiting from the conflict. Britain's BP more than doubled its first-quarter profit to $3.2 billion from the previous quarter, driven by superior oil trading and elevated prices. French oil company TotalEnergies reported quarterly net income of $5.4 billion and announced it would raise its dividend and double its share buybacks, the Times is reporting.
According to the Times' Gregory Schmidt, that stands in sharp contrast to American oil producers who are reporting declining profits despite elevated prices. Exxon Mobil reported $4.2 billion in first-quarter earnings — down 46 percent from a year earlier — while Chevron's quarterly profit slid to $2.2 billion, a 37 percent drop year-over-year. The Times report adds the caveat that the companies attributed the declines to accounting adjustments and paper losses they said would be unwound in coming months as gas prices stay high.
Exxon Mobil and Chevron — the two largest American oil producers — announced Friday they have no plans to increase oil drilling to capitalize on higher gas prices, a decision that suggests the companies are skeptical about the longevity of the price spike or wary of backlash over profiteering during wartime, the Times is reporting.