London Daily

Focus on the big picture.
Thursday, Jun 25, 2026

Oil giants' massive profits revive calls for windfall taxes

Oil giants' massive profits revive calls for windfall taxes

Global energy giants including Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) posted another round of huge quarterly profits, benefiting from surging natural gas and fuel prices that have boosted inflation around the world and led to fresh calls to further tax the sector.

Four of the five largest global oil companies have now reported results, combining for nearly $50 billion in net income, lifted by tight global markets and disruption following Moscow's invasion of Ukraine.

The sheer size of the profits has revived calls from politicians and consumer groups to impose more taxes on the companies to raise funds to offset the hit to households, businesses and the wider economy from higher energy costs. They have also criticized big oil companies for not doing enough to raise production to offset rising fuel and heating costs.

Chevron Chief Financial Officer Pierre Breber warned in an interview with Reuters that "taxing production will just reduce it."

The company reported its second-highest profit of $11.2 billion. However, the company's global production is down so far this year from a year ago, and other U.S. oil companies signaled that output in the top-producing U.S. shale region is waning already.

"If you raise the costs on energy producers, it will decrease investment so that goes against the intent of increasing suppliers and making energy more affordable."

U.S. President Joe Biden, who earlier this year said Exxon was making "more money than God", told oil companies this month that they were not doing enough to bring down energy costs.

Hours after Shell (SHEL.L) reported a quarterly profit of $9.45 billion and raised its dividend by 15% on Thursday, Biden said the company was misusing its profits.

On Friday, he noted on Twitter in response to a comment from Exxon's CEO that "giving profits to shareholders is not the same as bringing prices down for American families."

In the UK, the president of the COP26 climate summit Alok Sharma said on Friday that Prime Minister Rishi Sunak's government should explore extending a windfall tax on oil and gas firms.

"These are excessive profits, and they have to be treated in the appropriate way when it comes to taxation," Sharma said.

Shell CEO Ben Van Beurden has said the energy industry "should be prepared and accept" that it will face higher taxes to help struggling parts of society. Shell earned more than $9 billion in the third quarter, putting it on track to surpass its record annual profit of $31 billion set in 2008.



WINDFALL


Exxon Mobil, the largest U.S. major, reported nearly $20 billion in net income in the quarter ending in September, exceeding expectations and surpassing its previous record set just three months earlier.

Exxon led the five oil majors in overall revenue, nearly doubling its peers Shell and TotalEnergies (TTEF.PA) in the quarter. Exxon's shares lagged those companies' stocks for several years, but have rebounded in 2022 even as it has not made the same commitment as its European competitors to ramp up spending in renewables. BP Plc (BP.L), the fifth major, reports results next week.

"Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company moved forward, continuing to invest," Exxon CEO Darren Woods said.

Shares of the five majors have all posted a total return of at least 29% this year. Exxon leads the way with an 86% increase, while the broad-market S&P 500's (.SPX) total return is minus-19% on the year, according to Refinitiv Eikon data.

European governments have scrambled to fill gas storage after Russia cut off most of its natural gas exports to the continent, its primary customer.

On Friday, Norway's Equinor also broke new ground helped by the all-time high in European gas prices, and Italy's Eni (ENI.MI) nearly tripled its profit from a year ago, beating the consensus with earnings of 3.73 billion euros ($3.72 billion). France's TotalEnergies reported a record profit of $10 billion on Thursday.

"The Russian war in Ukraine has changed the energy markets, reduced energy availability and increased prices," Equinor Chief Executive Anders Opedal said in a statement.

Newsletter

Related Articles

0:00
0:00
Close
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
×