Exxon, one of the world’s largest and oldest oil companies, made a record $59.1 billion in profits in 2022, outpacing all other Western oil majors. This is in spite of the COVID-19 pandemic and the resulting global economic slowdown.
The company was able to increase its profits due to a variety of factors. It benefited from the dramatic drop in oil prices in the first half of 2020, as it was able to purchase oil at a much lower cost. This enabled the company to increase its profits despite the decrease in oil demand. Additionally, Exxon was able to increase its refining operations as well as its chemical production.
Exxon also faced criticism from environmental groups, who criticized the company for its continued investments in fossil fuels. In particular, Global Witness criticized the company for its investment in gas in Europe despite the region’s commitments to reduce carbon emissions.
Exxon’s profits come at a time when many other companies are struggling financially. The oil giant is likely to increase its profits further as it has reduced its cost base and has continued to invest in oil and gas projects. This will help the company remain profitable despite the decrease in global demand for oil.
Exxon’s record profits have been met with mixed reactions from investors and analysts. On the one hand, some investors applaud the company for its ability to remain profitable despite the pandemic. On the other hand, some analysts are concerned about the company’s reliance on oil and gas production and its lack of investment in renewable energy sources.
Regardless of the debate, Exxon’s record profits demonstrate the company’s ability to remain profitable, even during difficult economic times. The company is likely to be welcomed by investors, who view it as a sign of long-term success.