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Or sign-in if you have an account.q1(um}kao7skgl9uxrefg1)v_media_dl_1.png BloombergExxonMobil Holdings Corp. and Chevron Corp. plowed blowout profits into debt reduction rather than huge buyback increases in a sign of Big Oil’s caution about how long war-driven price rallies will last.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe biggest US oil companies more than doubled second-quarter net income on the heels of global energy market disruptions stemming from conflicts in the Persian Gulf and Russia. But in a pivot from previous oil-sector heydays, the supermajors refrained from lavishing the proceeds on investors.ExxonMobil lowered net debt by more than $7 billion during the quarter, the equivalent of almost half the company’s adjusted net income for the period.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againMeanwhile, Chevron steered a record $8.4 billion into debt reduction, slashing its ratio of net debt to cash flow from operations by more than half, according to a statement Friday.The North American giants’ biggest European rival, Shell Plc, earlier this week also held the line on shareholder rewards and instead trained its massive windfall profit on whittling debt.Shell cut net debt by about $10.8 billion, crimping its ratio of net to to equity to just under 19% from more than 23% in the prior quarter. The company held buybacks even at $3 billion.The largest crude-supply disruption in history is proving highly profitable for the supermajors as customers scramble to replace flows from the Persian Gulf, a gateway for 20% of the world’s petroleum. Crude has dropped since spiking to more than $125 a barrel in April due to on-off talks between the US and Iran, but refining margins are still near record levels, meaning some of the excess profits will likely endure into the second half of the year.ExxonMobil narrowly missed profit forecasts despite soaring crude prices and widening fuel-making margins as the US-Iran conflict enters its sixth month.Adjusted second-quarter earnings of $3.52 a share were 2 cents below the average estimate in a Bloomberg survey. Exxon’s miss was due in part to refinery maintenance that meant it wasn’t able to fully capture high prices for gasoline, diesel and jet fuel.That said, overall profit of $14.7 billion was the largest since Russia’s 2022 invasion of Ukraine that upended global markets.Chevron, for its part, reaped its highest quarterly profit on record, surpassing the prior all-time highs achieved in 2022.The explorer lifted production by 20% to the equivalent of 4.07 million barrels a day. Assets in the US Gulf of Mexico and Kazakhstan ramped up output during the quarter while the company also benefited from the integration of Hess Corp. assets acquired in last year’s $55 billion takeover. The company’s US production reached a record high.Share buybacks inched higher but at the low end of the guidance range.“We were able to reduce debt,” Chief Financial Officer Eimear Bonner said during an interview. “And keep more cash on the balance sheet, given the volatile times that we’re operating in.”Chevron ran its US refineries almost flat out, with a utilization rate above 97%. Profit from US fuel making surged to $2.4 billion, more than 10 times the prior quarter’s return.Big Oil’s windfall profits are becoming a political flashpoint as inflated energy prices stoke inflation around the world, not least in the US, where gasoline prices have once again crept above $4 a gallon. Retail prices for diesel, the workhorse of the global economy, are up more than 40% from pre-war levels. President Donald Trump last month ordered a Justice Department probe of fuel prices, which he claimed weren’t dropping fast enough.ExxonMobil’s refining profits reached a four-year high of $4.1 billion but it was considerably lower the $5.37 billion that analysts expected. The company said it produced record amounts of diesel in the period but earnings were “offset by scheduled maintenance impacts.”Despite banner profits, the oil industry is a “pretty low margin business,” ExxonMobil CFO Neil Hansen said during an interview. “We’re not big enough to impact price, really no company is.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.