Big Oil quarterly profits surge as Iran war redraws winners and losers
Big Oil delivered its strongest quarter since the aftermath of Russia's invasion of Ukraine , with six of the world's biggest oil companies posting a combined $79.4 billion in second-quarter net income as Brent crude averaged about $104 a barrel, up more than 50 per cent year-on-year. The Iran war sent prices higher while disrupting flows through the Strait of Hormuz. However, gains made by oil…
The oil industry experienced its strongest quarter since Russia's invasion of Ukraine, with six major oil companies collectively generating $79.4 billion in net income. Brent crude prices surged to an average of $104 per barrel, up over 50 percent year-on-year, driven by the Iran war and reduced flows through the Strait of Hormuz.
While profits were unevenly distributed, Western majors like Chevron, ExxonMobil, and BP benefited from higher prices and minimal operational disruptions, capturing wider margins. Conversely, Saudi Aramco, closest to the conflict, saw a significant profit but the weakest growth, with operations disrupted and output cut by 25 percent.
Shell faced a middle-ground situation, absorbing a major hit to its Qatari liquefied natural gas production while reaping trading and refining gains. ExxonMobil posted the largest dollar profit at $14.5 billion, benefiting from record production in the Permian Basin and Guyana. Chevron's net income surged 385 percent, driven by record US output and its $53 billion Hess acquisition integration.
ExxonMobil and Chevron reported a combined $26.6 billion in quarterly profit, making them the biggest beneficiaries from the Iran war. However, US President Donald Trump criticized Chevron and ExxonMobil for profiting from the supply shortage caused by the conflict. Shell's net income tripled to $10.8 billion, but its operations were disrupted by missile strikes on Qatar's Ras Laffan energy hub, cutting integrated gas output by 31 percent.
BP reported a 141 percent increase in net income to $3.91 billion, describing the quarter as one of the most disrupted in global energy markets. TotalEnergies saw a 102 percent increase in net income to $5.4 billion, with French lawmakers and climate groups calling for a "superprofits" tax on the company due to its gains during the war.
Saudi Aramco remained the most profitable company, but its output declined by 4 percent due to Middle East shutdowns and attacks on its Satorp refinery.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
