Exxon and Chevron profits surge on rising oil prices due to Iran war

ExxonMobil and Chevron on Friday reported second-quarter profits that surged on rising oil prices due to the Iran war.

Chevron’s net income soared to $12 billion, a nearly 400% increase compared to $2.5 billion in the same period last year. Adjusted earnings came in at $6.06 per share, 50 cents higher than Wall Street’s estimates.

“We’re kind of firing on all cylinders, which is good, because the world needs it,” CEO Mike Wirth told CNBC’s Becky Quick.

Wirth said the threat to oil supplies in the Middle East has expanded beyond the Strait of Hormuz at a time when global inventories are falling. Iran’s Houthi allies in Yemen have expanded the conflict to the Red Sea, which has become a crucial alternative route for Saudi Arabia’s oil exports.

“The situation is under stress and I’m afraid it’s going to continue to do so,” Wirth told CNBC. “We’re running out of time. Every day that goes by, the situation gets more difficult.”

Exxon posted profits for the quarter of $14.5 billion, more than doubling from about $7.1 billion in the same quarter last year. Adjusted earnings of $3.52 per share missed analyst estimates by 8 cents.

Exxon CEO Darren Woods said the miss was due to difficulties in company’s refining business. It was challenging to forecast prices due to the disruption in global crude and products markets, he said.

“We have so much disruption,” Woods told CNBC’s “Squawk Box.” “It was particularly difficult, particularly for our refining business. The ability to predict what prices we’re going to do on that business was difficult. That’s where the miss came from.”

Chevron shares were slightly higher in premarket trading, while Exxon shares were down about 1%.