Fri, 01 Dec 2023

HOUSTON, Texas: Exxon Mobil Corp said this week that profits from skyrocketing fuel prices could result in a record $16 billion quarterly profit.

Exxon, like other oil companies, has seen surges in profits as oil rose to more than $105 per barrel and gasoline is reported selling at $5 per gallon in the United States.

It is expected that such enormous earnings could well result in calls for windfall profit taxes.

Exxon, America's largest U.S. oil producer, has said in filings that it anticipates an increase of some $7.4 billion in operating profits over the first quarter in 2022.

In real terms, Exxon might see a quarterly profit of more than $16 billion. The company's largest quarterly profit was recorded at $15.9 billion in 2012.

"High energy prices are largely a result of underinvestment by many in the energy industry over the last several years and especially during the pandemic," Exxon said in a statement on the expected profits.

At the same time, analysts anticipate a per share profit of $2.99, compared to $1.10 in the same quarter in 2021.

Official quarterly results will be released on July 29.

In May, commenting on Exxon's profits, U.S. President Joe Biden said Exxon was making "more money than God," after posting its biggest quarterly profit in seven years.

Meanwhile, U.S. Representative Ro Khanna said this week that Exxon's record-breaking profits caused him to redouble efforts in Congress to pass a windfall tax on the nation's oil companies.

"Big Oil companies should be providing relief to their customers, not pouring billions into stock buybacks to enrich their investors," he said in a statement.

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