ExxonMobil and Chevron beat estimates as oil refining profits soar

Published Fri, Oct 30, 2026 · 08:01 PM

EXXONMOBIL and Chevron beat profit expectations as conflicts in the Persian Gulf and Russia roiled energy markets, driving refining results to record highs.

ExxonMobil’s adjusted third-quarter earnings of US$4.23 a share were 10 cents higher than the average analyst estimate. Chevron’s, at US$5.28 a share, were 35 cents higher than expectations.

Motorists’ pain at the pump is providing a windfall for oil supermajors while fanning discontent as US President Donald Trump and his Republican Party head into midterm elections that will determine control of Congress.

Voters consistently cite the cost of living as a top concern with high fuel prices turning traditional Republican strongholds including Texas, Kansas and Alaska into battleground states.

International oil prices are up almost 60 per cent since the US and Israel attacked Iran in late February, and refining has emerged as an additional choke point in the global energy supply chain.

The fighting in the Middle East and Ukrainian strikes in Russia have sidelined about 10 per cent of the world’s fuel-making capacity, handing enormous profits to plants that remain operational.

ExxonMobil’s refining division earned a record US$9.05 billion during the third quarter, almost five times higher than a year earlier. Chevron refineries raked in US$4.93 billion in profit, the highest on record and four times more than a year ago.

ExxonMobil shares rose 1.6 per cent before the start of regular trading in New York. Chevron rose 1.5 per cent.

Rival European supermajors also posted sharply higher profits this week, prompting Shell to hike repurchases to match those of industry leader ExxonMobil.

BP’s profit climbed to an 18-year high on the strength of hefty refining returns. TotalEnergies SE’s quarterly profit more than doubled as the French major also benefitted from elevated refining earnings.

Trump has batted away concerns over petrol and diesel prices, which are higher on average during his second term than under his predecessor Joe Biden, saying they will come down “very soon” at a rally in Texas this week.

A few days earlier, he praised US oil companies for making “a freaking fortune” for the country, an apparent U-turn after criticising them for “making too much money” this summer.

Yet with the Iran conflict entering its ninth month, the disruptions to global energy markets show little sign of easing despite more ships now passing through the Strait of Hormuz. Until now, markets have leaned heavily on supplies from strategic and commercial stockpiles. But with these buffers running low, price volatility is forecast to escalate.

ExxonMobil, which operates the largest refining system outside China, reported its fourth-highest overall profit in the company’s 156-year history. It raised dividends for the 44th consecutive year and pledged to maintain US$20 billion in annual buybacks.

Chief financial officer Neil Hansen said the profit surge was less a windfall than a reward for ramping up production at a time when it is most needed.

ExxonMobil has increased Gulf Coast distillate production 40 per cent since 2019 as a result of heavy investment since 2020, when rivals sold off fuel-making facilities or converted them to biofuel plants.

“The most meaningful response to those higher global commodity prices that we can offer as a company is to pull every lever that’s available to us to increase supply,” Hansen said during an interview. ExxonMobil is “putting more diesel on the market in a very strained environment today.”

Chevron also notched its fourth-highest quarterly profit in company history. The company maintained share buybacks at US$2.5 billion for the quarter, the low end of its full-year guidance range. For the second consecutive quarter, Chevron executives funnelled windfall profits primarily into debt reduction.

“We don’t react to upside or downside, we don’t move things around,” chief financial officer Eimear Bonner said during an interview. “For now, we’re sticking with our longstanding financial priorities and we’re not making any changes.”

Aided by last year’s acquisition of Hess Corp, Chevron increased production year-on-year, allowing it to take advantage of the roughly 34 per cent jump in international crude prices from a year earlier. The Hess deal gave Chevron a 30 per cent stake in Guyana’s prolific Stabroek Block that’s operated by ExxonMobil.

Chevron is on track to produce 300,000 barrels a day from Venezuela by the end of this year, up 20 per cent from a year ago. The company’s costs are less than US$20 a barrel in the country, making it one of the most profitable oil theatres in the world.

Venezuela is “immediately accretive and free cash flow positive,” Bonner said. “We are not concerned with our ability to grow that production.” BLOOMBERG