Exxon, Chevron Report Billions in Profits but Plan to Keep Spending Tight

Big oil companies are raking in their highest profits since the onset of the coronavirus pandemic, but they plan to continue spending sparingly to boost production despite higher commodity prices.

Exxon Mobil Corp. reported $4.7 billion in second quarter profit Friday, while rival Chevron Corp. reported $3.1 billion in quarterly profit.

The results represented a dramatic turnaround from a year earlier, when Exxon reported a quarterly loss of $1.1 billion and Chevron lost $8.3 billion as demand for oil and gas plummeted due to the closing of economies worldwide due to the virus.

Some of the largest European oil companies also reported strong results earlier in the week. Royal Dutch Shell PLC reported $5.5 billion in net income, while TotalEnergies SE posted $3.5 billion in profits.

The oil-and-gas industry has recovered from unprecedented losses in 2020 as economies have reopened this year, sending prices surging to their highest levels in two years. U.S. oil prices have mostly stayed above $60 per barrel since March, after briefly turning negative last April and remaining below $50 for most of 2020. Oil prices closed at nearly $74 per barrel on Thursday.