Wall Street analysts sharply increased their Exxon Mobil Corp second-quarter profit estimates; after the largest U.S. oil producer projected it could almost double its first-quarter earnings.
Exxon’s preview, released on Friday, signaled strong results ahead by oil companies and refiners and brought renewed criticism from the White House; and fresh calls for a windfall profit tax by U.S. lawmakers under pressure from voters feeling pain at the pump.
The filing showed Exxon expects oil and gas operating profits of more than $10 billion, $4.5 billion from producing gasoline and diesel, and about $2 billion from chemicals and motor oils. Exxon, like other U.S. oil companies; has been plowing higher profits into debt reduction and plans to buy back up to $30 billion of its shares.
Exxon shares fell 3% to $84.81 as benchmark oil prices slid $10.73 a barrel on worries a possible global recession could hurt demand.”If a company’s profits are four times what they were a year ago; and it refuses to invest in increased production, the system is broken,” said U.S. Senator Ron Wyden, Democrat of Oregon. He called on oil companies to invest in “equipment and more workers, not stock buybacks”.
-Reuters.