economy
Exxon and Chevron quarterly earnings fall despite soaring oil prices
US oil giants report big drops in profits due to Iran war disruptions but are expected to eventually reap benefits
TL;DR
- Exxon's quarterly profit fell 46% to $4.2bn, while Chevron's dropped 37% to $2.2bn.
- Stalled deliveries and supply disruptions in the Middle East impacted earnings for both companies.
- Both Exxon and Chevron beat Wall Street expectations despite the reported profit drops.
- "Timing effects" and "deferred profit" were explained by CEOs as reasons for lower reported earnings this quarter.
- Other oil companies like BP have reported increased profits, leading to calls for windfall taxes.
- Disruptions in Qatar's liquified natural gas operations have led ConocoPhillips to cut its annual output forecast.
- Gas prices at the pump have increased significantly, with Americans also facing fears of inflation and slow job growth.