The year 2022 marked a peak in profits for major oil and gas companies, driven by surging energy prices amidst Russia’s invasion of Ukraine. However, data from AltIndex.com, Exxon Mobil, Shell, Total Energies, and Chevron reveal a significant downturn in profits for these industry leaders in 2023.
Substantial profit reduction
In 2023, the collective net income of these energy giants amounted to $107.5 billion (€99.11 billion), a notable figure. Nevertheless, this represents a significant decrease of $43 billion (€39.6 billion) from the remarkable highs of 2022, marking a nearly 30% decline.
Specific company performance
US-based ExxonMobil experienced a considerable 35% decrease in annual net income, reporting $36 billion compared to $55.7 billion in 2022. Similarly, Chevron, another US oil giant, faced a substantial drop in earnings, with net profit plummeting by almost 40% year-on-year to $21.4 billion, down from $35.5 billion in 2022.
Shell, a British oil and gas corporation, also encountered a noteworthy decline, with its net income decreasing by 29% year-over-year. The company reported a net income of $28.3 billion in 2023, down from $39.9 billion the previous year.
BP’s financial journey
BP, after divesting its stake in the state-controlled Russian oil and gas company Rosneft, incurred a significant loss of $25 billion. However, the company rebounded, ending the first half of 2023 with a net profit of $10.3 billion and concluding the year with an annual profit of $21.4 billion, marking a 4% increase.
Total Energies stands out
Amidst the overall decline, French company Total Energies emerged as an exception, reporting its highest net profit in history for 2023. With a net profit of $21.4 billion, a 4% increase over 2022, Total Energies attributed its success to strong performances in its liquefied natural gas and electricity divisions, despite continued heavy investment in fossil fuel production.
SOURCE: Ref Image from The New York Times
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