ExxonMobil posts record profit as oil prices surge

Oil giant ExxonMobil reaped a record $55.7bn (£45.2bn) in profit last year as oil prices surged following Russia's invasion of Ukraine.

The total was more than double 2021's figure, and is likely to renew pressure on the industry after some countries, including the UK, imposed special taxes on the profits last year.

Exxon has criticised such measures as counter-productive.

Last month, it sued the European Union over the new windfall tax.

It argued that Brussels had exceeded its legal authority.

Exxon has also has spoken out against similar proposals in the US, where the White House has criticised oil firms for not doing enough to boost supply, choosing instead to spend their profits to reward investors, with share buybacks.

Chief executive Darren Woods said on Tuesday the profits were a vindication of the firm's strategy, which faced criticism from investors just a few years ago for not doing enough to respond to climate change by shifting to investments in renewable energy.

Exxon's shares sank sharply in 2020, when it reported its first loss in decades. But the price of the shares has soared since 2021, especially since oil prices jumped when the war in Ukraine disrupted energy supplies last year.

"Of course, our results clearly benefited from a favourable market but, to take full advantage of the undersupplied market, our work began years ago," Mr Woods said in a conference call with investors. "We leaned in when others leaned out, bucking conventional wisdom."

The firm said it had been working hard to reduce costs, and profits would have been even higher without the windfall taxes in Europe.

The company said it took a hit of $1.3bn in the final months of 2022, mainly from extra European taxes.

It also reported a $3.4bn charge for the year stemming from the expropriation of its investments in Russia.

Exxon said it increased investment by about 38% last year. In some key areas, such as Guyana and the Permian Basin, production was up more than 30%, the company said.