Oil giant records profit after a year of cash crunch

Big oil companies returned to a state of profit during the first quarter as they recovered from the unexpected devastation in the demand for oil and gas caused by the coronavirus pandemic, reported the Wall Street Journal.

Exxon Mobil Corp registered $2.7 billion in net income on Friday. It’s the company’s first quarterly profit after the outbreak of pandemic last year. While Chevron Corp. reported $1.4 billion in first-quarter profit.

The results improved after increasing oil prices during the first months of 2021, amid countries across the world ease coronavirus quarantines.

Earlier this week, after undergoing huge losses last year, the European oil giants, BP PLC, Royal Dutch Shell PLC, and Total SE, all registered profits.

Exxon Chief Executive Darren Woods stated in an interview on Friday, “That recovery, which we had anticipated happening at some point in time, is happening sooner than we anticipated. As economies are reopening and rebounding quicker, in some places, than expected, we are seeing a demand response.”

Oil companies across the world underwent one of their worst years in history during 2020 when Covid-19 lockdowns stopped their demand for oil and gas as road and air traffic fell sharply.