The two largest US oil companies, Exxon Mobil and Chevron, posted record revenue on Friday, bolstered by surging crude oil and natural gas prices and following similar results for European majors a day before.
The US pair, along with UK-based Shell and France's TotalEnergies, combined to earn nearly $51 billion in the most recent quarter, almost double what the group brought in for the same period a year ago.
Exxon outpaced its rivals with a $17.9bn quarterly profit, the most for any international oil major yet.
Chevron, Shell and Total ran to catch up with Exxon's aggressive buyback programme, which was unaltered.
The four returned a total of $23bn to shareholders in the quarter, capitalising on high margins derived from selling oil and gas. The fifth major, BP, reports next week.
The companies posted strong results in their production units, helped by the surge in benchmark Brent crude oil futures, which averaged around $114 a barrel in the quarter.
High crude oil prices can cut into margins for integrated oil majors as they also bear the cost of crude used for refined products.
However, following Russia's invasion of Ukraine and numerous shutdowns of refineries worldwide after the coronavirus pandemic, refining margins exploded in the second quarter, outpacing the gains in crude and adding to earnings.
“The strong second quarter results reflect a tight global market environment, where demand has recovered to near pre-pandemic levels and supply has attrited,” said Exxon chief executive Darren Woods, in a call with analysts.
“Growing supply will not happen overnight.”
The results from the majors are sure to draw fire from politicians and consumer advocates who say the oil companies are capitalising on a global supply shortage to fatten profits and gouge consumers.
US President Joe Biden last month said Exxon and others were making “more money than God” at a time when consumer fuel prices surged to records.
This month, Britain passed a 25 per cent windfall tax on oil and gas producers in the North Sea. US politicians have discussed a similar idea, although it faces long odds in Congress.
A windfall tax does not provide “incentive for increased production, which is really what the world needs today”, said Exxon chief financial officer Kathryn Mikells.
The companies said they are merely meeting consumer demand, and that prices are a function of global supply issues and lack of investment.
The majors have been disciplined with their capital and are resisting increasing capital expenditure due to pressure from investors who want better returns and resilience during a down cycle.
“In the short term [cash from oil] goes to the balance sheet. There's no nowhere else for it to go,” Chevron chief financial officer Pierre Breber told Reuters.
Worldwide oil output has been held back by a slow return of barrels to the market from the Organisation of the Petroleum Exporting Countries and allies, including Russia, as well as labour and equipment shortages hampering a swifter increase in supply in places like the US.
Exxon earlier this year more than doubled its projected buyback programme to $30bn through 2022 and 2023.
Shell said it would buy back $6bn in shares in the current quarter, while Chevron boosted its annual buyback plans to a range of $10bn to $15bn, up from $5bn to $10bn.
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
Overall standings
1. Christopher Froome (GBR/Sky) 68hr 18min 36sec,
2. Fabio Aru (ITA/AST) at 0:18.
3. Romain Bardet (FRA/ALM) 0:23.
4. Rigoberto Uran (COL/CAN) 0:29.
5. Mikel Landa (ESP/SKY) 1:17.
Rooney's club record
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
if you go
The flights
Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.
The trip
Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.
UAE currency: the story behind the money in your pockets
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
