ExxonMobil, a major oil company, made a record $55.7 billion (£45.2 billion) in profit last year when oil prices rose as a result of Russia’s invasion of Ukraine, as reported by BBC.
After some nations, like the UK, levied special taxes on the earnings last year, pressure on the business is likely to return given that the total was more than double the amount for 2021.
Such actions have been criticised by Exxon as being ineffective.
It filed a lawsuit against the EU last month regarding the new windfall tax.
Exxon has also opposed similar suggestions in the US, where President Joe Biden has sought to place the burden for the high cost of gasoline last year on businesses who did not use their profits to increase supply.
A White House statement on Tuesday called it “outrageous that Exxon has posted a new record for Western oil company profits after the American people were forced to pay such high prices at the pump amidst [Russian President Vladimir] Putin’s invasion.”
“The latest earnings reports make clear that oil companies have everything they need, including record profits and thousands of unused but approved permits, to increase production, but they’re instead choosing to plough those profits into padding the pockets of executives and shareholders,” said White House spokesman Abdullah Hasan.
In an interview with broadcaster CNBC, Exxon boss Darren Woods said the White House needed to “get its facts straight”, noting that the firm had continued to spend money on oil and gas projects despite pressure from investors and others to shift investments to renewable energy.
He told investors on Tuesday that the profits were a vindication of the firm’s strategy.
“Of course, our results clearly benefited from a favourable market but, to take full advantage of the undersupplied market, our work began years ago,” Mr Woods said in a conference call with investors. “We leaned in when others leaned out, bucking conventional wisdom.”
When oil demand fell in 2020, Exxon’s shares plunged and the company posted its first loss in decades.
But since 2021, the share price has skyrocketed, particularly as a result of the increase in oil prices brought on by the disruption of the energy supply in Ukraine last year.
The company claimed that without the European windfall taxes, profits would have been considerably higher despite its efforts to cut expenses.
The corporation said that additional European taxes cost them $1.3 billion in the last quarter of 2022.
Additionally, it disclosed a $3.4 billion charge for the year as a result of the expropriation of its Russian investments.
Exxon reported a 38% increase in investment last year. The company reported that production was up more than 30% in some important regions, including Guyana and the Permian Basin, which countered output loss as a result of divestitures and the shift in Russia.
From 2,289 million barrels per day in 2021 to 2,354 million barrels per day in 2022, overall oil production increased by roughly 3%.
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