Oil giant ExxonMobil is making bank and its stock is currently at record highs, thanks to consumers paying more at the pump. The latest profit spike comes as President Joe Biden blasts oil companies for keeping prices high even as “input costs fall.”
What Happened: According to data from Benzinga Pro, Exxon booked $18.7 billion, up 6% from the second quarter’s earnings, which had been the record, and up 177% from a year earlier.
As companies usually do when they reach all-time highs, the Irving, Texas-based company did not reveal that it had made a record profit for the second straight quarter.
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Exxon also reported that its refineries made new output production records. The Biden administration and Congress have called on oil corporations to boost the supply of gasoline and other oil products in response to soaring prices and low supplies magnified by Russia’s invasion of Ukraine.
Why It Matters: Oil companies typically take their windfall gains and return it to shareholders through stock buybacks and dividends to boost their stock prices, delaying the expansion of their crude oil output.
Exxon reported that as part of its commitment to repurchase $30 billion worth of stock by the end of next year, it has paid out $11.2 billion in dividends and purchased $10.5 billion worth of its own stock this year.
However, given the high retail prices and refinery margins, the oil companies have been keen to process as much oil as possible through their refineries. The Strategic Petroleum Reserve, the U.S.’ emergency oil stockpile, has been releasing around 1 million barrels of oil each day, which accounts for the majority of the additional oil.
Price action: Shares of ExxonMobil are up 71.39% year to date, and currently resting at all-time highs of $108.90, according to data from Benzinga Pro.
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Image and article originally from www.benzinga.com. Read the original article here.