"Making More Money Than God" Criticized US Oil Giant ExxonMobil Earned 23 Trillion Won in Q2 Again

Riding the surge in oil and gas prices... "Highest in 25 years" forecast
Biden previously criticized, "Last year Exxon made more money than God"

[Image source=Reuters Yonhap News]

[Asia Economy Intern Reporter Kim Se-eun] It has been revealed that ExxonMobil (Exxon), a major American oil company, also made enormous profits in the second quarter.

According to The Wall Street Journal (WSJ) on the 1st (local time), Exxon submitted its second-quarter business report to regulatory authorities, and its preliminary profits are expected to reach $18 billion (approximately 23.4 trillion KRW).

The background behind Exxon’s huge profits is attributed to the global surge in oil and gas prices, as well as the skyrocketing sales prices of gasoline and diesel for automobiles.

The expected margin from crude oil refining alone is $4.6 billion (approximately 6 trillion KRW), and the preliminary profits from the surge in oil and gas prices amount to $3.3 billion (approximately 4.3 trillion KRW).

However, the preliminary profit for the second quarter does not reflect certain costs, so the exact figure is not final. Exxon plans to officially announce its second-quarter earnings on the 29th.

Financial information firm FactSet forecasted that Exxon’s second-quarter profits would reach the highest level in 25 years.

After submitting the business report on the same day, Exxon issued a statement claiming, "The recent surge in oil prices is due to a lack of investment in the oil industry over the past few years."

It added, "We are investing more than other companies to lower energy prices and increase oil and natural gas production."

In response, WSJ countered, "Exxon and other oil companies have focused more on shareholder dividends rather than reinvesting the profits gained from the surge in oil prices into oil drilling facilities."

In fact, Exxon, which suffered huge losses in 2020, cleared its debts as energy prices rose and surplus funds appeared. It then planned to repurchase up to $30 billion (approximately 39 trillion KRW) of its own shares by next year to manage its stock price.

Meanwhile, U.S. President Joe Biden pointed out on the 10th of last month, amid the severe global damage caused by the surge in oil prices, that "Exxon made more money last year than God."

He continued, "We will make sure anyone can clearly see Exxon’s profits," urging oil companies to make efforts to lower prices.

Bloomberg News also criticized, "Although consumers’ burdens have increased due to gasoline prices, Exxon is enjoying 'windfall profits.' Windfall profits refer to the 'excess' portion of profits above the average."