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ExxonMobil posts record profit as oil prices surge

The bumper gains are likely to renew political pressure on the oil and gas industry.

Source link This week, ExxonMobil (NYSE: XOM) reported record profits of $21.55 billion for the first quarter of 2021, a 77% increase from the same period last year. The news comes amid a surge in oil prices due to rising demands for commodities and increased transportation needs for worldwide economic activity.

Exxon Mobil’s first quarter results exceeded all estimates, with revenues of nearly $71 billion, up from $53.87 billion for the first quarter of 2020. Net income was a robust $21.55 billion, leading to a positive bottom line. The company’s upstream segment, which drills for and produces oil from wells, achieved the highest profit of $13.3 billion.

At the same time, the company’s refining business performed quite well, with sales of more than $11 billion. This was partially due to higher sales of fuel, jet fuel and diesel. As oil prices continued to rise, gross profit margins increased by nearly 11%, driving higher profit levels.

ExxonMobil’s CEO Darren W. Woods said in a statement, “The global economic recovery is underway, and Exxon Mobil is well-positioned to benefit from the recovery with record first quarter results driven by strong upstream, integrated gas and chemical performance.”

The strong financial results come as other major oil producers such as Royal Dutch Shell, Chevron and Total have reported ambitious earnings for the first quarter, mainly due to a surge in oil prices. This rebound in oil prices is expected to continue, as global demand for transportation continues to strengthen.

In conclusion, ExxonMobil’s record first-quarter results indicate that the company is well-positioned to benefit from the global economic recovery. However, it remains to be seen if the company can continue to increase its profits in the coming quarters.

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