Oil Majors Exxon and Chevron Soar on Record Profits
The oil industry is experiencing a surge in profits, with ExxonMobil Holdings (XOM) and Chevron (CVX) leading the charge. In the second quarter, Exxon posted net income of $14.5 billion, more than double its profit from the same period last year.
Chevron's net income was also impressive, at $12 billion for the quarter, which is a 400% increase from the previous year. The company beat Wall Street's earnings estimates by $0.50 per share, with a result of $6.06. However, Exxon fell short of expectations, posting adjusted earnings of $3.52 per share due to difficulties in its refining business.
The increase in profits for both companies is largely attributed to higher oil prices resulting from the war in the Persian Gulf and the closure of the Strait of Hormuz. The Strait accounts for about one-fifth of the world's oil flows, and its closure has had a significant impact on global oil prices.