The world's top five publicly listed oil companies are projected to deliver record-breaking payouts exceeding $100 billion to their investors in 2023, a move drawing scrutiny amidst mounting public concern over fossil fuel profits, as reported by The Guardian.
These 'super-majors'—BP, Shell, Chevron, ExxonMobil, and TotalEnergies—distributed a staggering $104 billion in dividends and share buybacks to shareholders throughout the 2022 calendar year, according to data from the Institute for Energy Economics and Financial Analysis (IEEFA).
The substantial payouts followed a period of remarkable profitability for major oil and gas corporations, triggered by Russia's invasion of Ukraine, which disrupted global energy markets, consequently driving up the international price of Brent crude and establishing record gas prices across Europe.
Despite a downturn in commodity market prices leading to reduced profits, financial analysts at IEEFA anticipate even larger shareholder distributions from these companies this year.
These anticipated payouts come in the wake of a year poised to be one of the hottest on record, marked by severe weather incidents linked to the escalating climate crisis.
Trey Cowan, an analyst at IEEFA, highlighted the trajectory of shareholder distributions, stating, "At the current pace of distributions via share buybacks and dividends, these five super-majors could set a record for distributions to shareholders in 2023, topping the $104 billion spent during the 2022 calendar year," as per The Guardian's report.
This news underscores the juxtaposition of robust financial gains within the fossil fuel industry against the backdrop of intensifying climate concerns, potentially fueling public debate over the sector's profits amidst pressing environmental challenges.
(With Agency Inputs)
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