Higher oil prices lift energy majors’ second-quarter profits

LONDON

Major energy companies reported sharp increases in second-quarter profits as the war in the Middle East pushed oil and gas prices higher and strengthened refining margins.

British energy company BP said its underlying replacement cost profit rose to $5.7 billion from $2.35 billion a year earlier. Its reported profit attributable to shareholders more than doubled to $3.9 billion from $1.63 billion.

Saudi Aramco reported net income of $32.7 billion, up 44 percent from $22.7 billion a year earlier. Adjusted net income rose 33 percent to $33.4 billion, exceeding analysts’ median estimate of about $31.2 billion.

Other major energy companies also posted steep gains.

ExxonMobil’s earnings more than doubled to $14.5 billion, while Shell’s adjusted earnings climbed to $9.84 billion from $4.26 billion.

Chevron reported earnings of $12.1 billion, nearly five times the $2.5 billion recorded in the same quarter last year.

The gains came as disruptions to energy supplies and shipping routes drove up crude oil, natural gas and fuel prices, renewing concerns that inflation could remain elevated and interest rates stay higher for longer.