Rising gas and food prices put pressure on American consumers
Inflation rose over the past year at its fastest pace in more than 40 years, with rising costs of food, gasoline, housing, and other necessities to American consumers. (April 12)
- After the Russian invasion of Ukraine in February, oil prices skyrocketed in the first quarter of 2022.
- Shell’s adjusted profit, for example, rose to $9.1 billion, while Exxon Mobil reported $5.48 billion.
- Rising prices boosted the profits of the major energy companies, further contributing to global inflation and the cost of living crisis.
As households around the world struggle with rising energy bills, some of the world’s leading oil giants posted record profits for the first three months of this year.
Profits of ExxonMobil, Shell, and others have also risen by the billions despite the significant costs of exiting operations and/or investments in Russia amid the war in Ukraine.
After Russia invaded Ukraine in February, the price of oil jumped in the first quarter of 2022 — as countries heavily dependent on Russia for energy scrambled for alternative fuel sources amid uncertainty.
world oil price benchmark, Brent crudeIt averaged $102.23 a barrel during the first quarter — up 67% from the same period last year, according to the Associated Press. In the United States, for example, drivers have thus found expensive gas prices at the pump.
Home heating bills and electricity prices have also ballooned around the world — natural gas prices have risen from $3.50 per million British thermal units to about $5.60.
Rising oil and gas prices boosted the profits of major energy companies, further contributing to global inflation and the cost of living crisis.
The net profit margin of S&P 500 companies, which includes energy giants such as chevron And ExxonMobilin the first quarter was 12.3% working Based on estimates and earnings reported so far, according to FactSet. That’s down from a peak of 13.1% in the second quarter of last year, but up from the pre-COVID-19 level of about 11%.
“Profit margins should go down,” said Lindsey Owens, executive director of Groundwork Collaborative, a progressive research group on economic policy, Tell us earlier USA TODAY.
Instead, she said, “They’re actually growing.”
The following is an analysis of the profits and profits made by some of the world’s oil giants in the first three months of 2022:
Shell’s profit rises to $9.1 billion
in the first quarter, Shell’s adjusted earnings rose to $9.1 billion from $3.2 billion in the same period last year. Net income rose to $7.3 billion from $5.8 billion in the first quarter of last year.
Shell said it would also require $3.9 billion to cover the cost of exiting investments in Russia, which the London-based energy giant pledged to do after the invasion of Ukraine.
BP reports profit of $6.2 billion
BP Recorded its highest quarterly profit In more than a decade — with the British energy company announcing on Tuesday that core replacement cost earnings rose to $6.2 billion in the first three months of this year, more than double the $2.6 billion from the same period last year.
BP PLC also said its first-quarter net loss was $23 billion, after it wrote off nearly 20% of its stake in Russian oil producer Rosneft in response to the Ukraine war.
Both BP and Shell’s recent earnings reports have Contribute to calls in Britain For the government to tax the windfall profits of energy companies, hoping to help consumers suffering from rising energy prices. Prime Minister Boris Johnson rejected the idea, saying the tax would reduce investment in Britain during efforts to diversify the country’s energy industry.
Ed Davey, the leader of the Liberal Democrats, told the Associated Press that “the British government’s refusal to tax the super-profits of energy companies is completely unforgivable when people are so afraid to heat their homes.”
Exxon doubled its profits from last year to 5.48 billion dollars
At the end of April, ExxonMobil Reported $5.48 billion in profits During the first quarter of 2022 – also more than double its earnings compared to the same period last year. Irving, Texas, had revenue of $90.5 billion, far exceeding revenue of $59.15 billion during the same quarter of 2021.
But after Russian operations were abandoned due to the war, Exxon also took a big hit, posting $3.4 billion.
Chevron reports $6.26 billion in profit
Also at the end of April, Chevron reported a Quarterly profit of $6.26 billion, more than quadrupled its $1.4 billion profit in the first quarter of last year. Revenues for the San Ramon, California energy product rose 41% to $54.37 billion.
Sinopec’s net profit is $3.45 billion
to me ReutersChina Petroleum & Chemical Corp., or Sinopec, reported net profit of 22.61 billion yuan ($3.45 billion) under Chinese accounting standards for the first quarter of 2022, compared with 17.93 billion yuan ($2.69 billion) last year.
Sinopec also saw a 25% increase in net income.
Philips 66 Adjusted Earnings $595 Million
For the first quarter of the year, Philips 66 announced first-quarter earnings $582 million, adjusted earnings of $595 million.
In 2021Phillips posted a first-quarter loss of $654 million, with an adjusted loss of $509 million.
Contributing: Associated Press, Paul Davidson, USA Today.