The major international oil companies are preparing for a record profit of $50 billion in the second quarter of this world, but the stellar performance of the industry could contain what may be the “retreat seeds”.
The high profits are a direct result of high energy prices, which exacerbated inflation rates, put pressure on consumers, increased the risks of recession, and sparked calls for tax cuts, and amid this political and economic turmoil, shareholders may have to reduce their expectations about returns, according to a report by “Bloomberg” agency. “.
Ahmed Bin Salem, analyst at Odoo BHF, said: “There is a strong chance that earnings will peak in the second or third quarter, with a slight dip after that. This looming recession is calming things down.”
ExxonMobil, Chevron, Shell, Total and BP, collectively known as Super Majors, are poised to make more profits than they did in 2008, when global oil prices jumped to $147. barrel.
This is because it is not only crude oil that has risen, natural gas prices and refining margins have also broken records. Exxon leads the group with a 46% rise in profit this year, while Total Energy is the lowest, although it is still up 11%.
Several major markets have found themselves suffering from a severe shortage of refining capacity, due to a combination of shutdowns and investments stymied by the pandemic, sanctions against Russia and China’s decision to limit oil exports.
The oil majors are about to post unprecedented profits thanks to high energy prices
