Beautiful Virgin Islands

Thursday, Mar 23, 2023

Oil giants' massive profits revive calls for windfall taxes

Oil giants' massive profits revive calls for windfall taxes

Global energy giants including Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) posted another round of huge quarterly profits, benefiting from surging natural gas and fuel prices that have boosted inflation around the world and led to fresh calls to further tax the sector.

Four of the five largest global oil companies have now reported results, combining for nearly $50 billion in net income, lifted by tight global markets and disruption following Moscow's invasion of Ukraine.

The sheer size of the profits has revived calls from politicians and consumer groups to impose more taxes on the companies to raise funds to offset the hit to households, businesses and the wider economy from higher energy costs. They have also criticized big oil companies for not doing enough to raise production to offset rising fuel and heating costs.

Chevron Chief Financial Officer Pierre Breber warned in an interview with Reuters that "taxing production will just reduce it."

The company reported its second-highest profit of $11.2 billion. However, the company's global production is down so far this year from a year ago, and other U.S. oil companies signaled that output in the top-producing U.S. shale region is waning already.

"If you raise the costs on energy producers, it will decrease investment so that goes against the intent of increasing suppliers and making energy more affordable."

U.S. President Joe Biden, who earlier this year said Exxon was making "more money than God", told oil companies this month that they were not doing enough to bring down energy costs.

Hours after Shell (SHEL.L) reported a quarterly profit of $9.45 billion and raised its dividend by 15% on Thursday, Biden said the company was misusing its profits.

On Friday, he noted on Twitter in response to a comment from Exxon's CEO that "giving profits to shareholders is not the same as bringing prices down for American families."

In the UK, the president of the COP26 climate summit Alok Sharma said on Friday that Prime Minister Rishi Sunak's government should explore extending a windfall tax on oil and gas firms.

"These are excessive profits, and they have to be treated in the appropriate way when it comes to taxation," Sharma said.

Shell CEO Ben Van Beurden has said the energy industry "should be prepared and accept" that it will face higher taxes to help struggling parts of society. Shell earned more than $9 billion in the third quarter, putting it on track to surpass its record annual profit of $31 billion set in 2008.



WINDFALL


Exxon Mobil, the largest U.S. major, reported nearly $20 billion in net income in the quarter ending in September, exceeding expectations and surpassing its previous record set just three months earlier.

Exxon led the five oil majors in overall revenue, nearly doubling its peers Shell and TotalEnergies (TTEF.PA) in the quarter. Exxon's shares lagged those companies' stocks for several years, but have rebounded in 2022 even as it has not made the same commitment as its European competitors to ramp up spending in renewables. BP Plc (BP.L), the fifth major, reports results next week.

"Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company moved forward, continuing to invest," Exxon CEO Darren Woods said.

Shares of the five majors have all posted a total return of at least 29% this year. Exxon leads the way with an 86% increase, while the broad-market S&P 500's (.SPX) total return is minus-19% on the year, according to Refinitiv Eikon data.

European governments have scrambled to fill gas storage after Russia cut off most of its natural gas exports to the continent, its primary customer.

On Friday, Norway's Equinor also broke new ground helped by the all-time high in European gas prices, and Italy's Eni (ENI.MI) nearly tripled its profit from a year ago, beating the consensus with earnings of 3.73 billion euros ($3.72 billion). France's TotalEnergies reported a record profit of $10 billion on Thursday.

"The Russian war in Ukraine has changed the energy markets, reduced energy availability and increased prices," Equinor Chief Executive Anders Opedal said in a statement.

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Donald Trump arrested – Twitter goes wild with doctored pictures
I have a dream, MLK inspiring speech
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Aretha Franklin, Marvis Staples - Oh Happy Day
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
BVI Freedom Song
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Billy Preston - You Can't Beat God Giving (Live)
Paris Rioting vs Macron anti democratic law
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
'Sexual Fantasy' Assignment At US School Outrages Parents
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Credit Suisse to borrow $54 billion from Swiss central bank
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Russian Hackers Preparing New Cyber Assault Against Ukraine
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Hello Dolly
If this was in Tehran, Moscow or Hong Kong
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Nashville police officer, and a female driver shooting one another
Bob Marley - Get Up Stand Up
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Yes He Can
Mexican President Claims Mexico is Safer than the U.S.
What A Friend We Have In Jesus
A brief banking situation report
Unforgettable
Lady bites police officer and gets instantly reaction
Touch The Hem Of His Garment
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
The Lord's Prayer
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
THE GOD MOVEMENT...BEAUTIFUL BVI
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Siyahamba
Silicon Valley Bank exec was Lehman Brothers CFO
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Ramblin' Rose
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Protoje - Who Knows ft. Chronixx
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
Pressure - Virgin Islands Nice
Elon Musk Is Planning To Build A Town In Texas For His Employees
Phil Wickham - House Of The Lord
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
My God Is Real (Yes, God Is Real)
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
Fitness scam
Louis Armstrong - When The Saints Go Marching In
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Kanye West Sunday Service - hallelujah, salvation, and glory
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Jonathan Nelson - I Believe (Island Medley
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
From The Virgin Islands Sqad Up
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Common, John Legend - Glory
Banking regulators close SVB, the largest bank failure since the financial crisis
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
I have a dream, MLK inspiring speech
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Aretha Franklin, Marvis Staples - Oh Happy Day
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
BVI Freedom Song
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Billy Preston - You Can't Beat God Giving (Live)
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
It's the question on everyone's lips: could a four-day workweek be the future of employment?
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Hello Dolly
Spain officials quit over trains that were too wide for tunnels...
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
×