Big Oil is poised for a record-breaking US$50 billion profit in the second quarter, but the industry’s stellar performance could contain the seeds of its own decline.
The soaring earnings are direct result of the high energy prices that have stoked inflation, piled pressure on consumers, raised the risk of recession and prompted calls for windfall taxes. Amid this political and economic turbulence, shareholders may have to temper their expectations for rising returns.
“There’s a strong chance that earnings will peak in the second or third quarter, with a small decline thereafter,” said Ahmed Ben Salem, an analyst at Oddo BHF. “This looming recession is calming things down.”
Exxon Mobil Corp., Chevron Corp., Shell Plc, TotalEnergies SE and BP Plc — collectively known as the supermajors — are set to make even more money than they did in 2008, when international oil prices jumped as high as US$147 a barrel.
For the rest of this article: https://www.bnnbloomberg.ca/big-oil-set-for-record-profit-as-world-reels-from-high-fuel-cost-1.1796892