• Trump blasts oil firms, accuses them of making too much money
•Four companies rake in over $65bn in profits
•Reuters: Dangote refinery to raise $5bn in Oct. listing
Emmanuel Addeh in Abuja
Saudi Aramco, ExxonMobil, Chevron and BP have reported a combined second quarter profit of about $65 billion, as soaring crude oil prices and refining margins triggered by the Iran conflict delivered windfall earnings for the world’s biggest energy companies.
This came even as consumers across many countries continue to grapple with higher fuel prices, and US President, Donald Trump, knocked the oil majors for making too much money off the Iran conflict.
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The development emerged after months of disruptions to global energy supplies following the United States and Israel’s attacks on Iran and Tehran’s retaliation, which severely disrupted shipping through the Strait of Hormuz, a vital waterway that normally carries about one fifth of global oil and liquefied natural gas supplies.
The conflict pushed Brent crude prices from about $70 per barrel before the crisis to above $100 for much of the April to June quarter, peaking at about $126 at one point, while diesel, jet fuel and gasoline prices also surged.
To this end, Saudi Aramco yesterday reported a 44 per cent increase in second quarter net profit to $32.69 billion from $22.67 billion a year earlier, driven by higher prices for crude oil, refined products and petrochemicals.
The world’s largest oil exporter said it maintained a supply reliability rate of 98.4 per cent despite the geopolitical crisis by rerouting exports through its East West Pipeline to the Red Sea.
However, Aramco President and Chief Executive Officer, Amin Nasser, warned that the disruption had depleted global oil inventories and could have lasting consequences for the world economy.
“Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity,” Nasser said, adding that more than 2.6 billion barrels of oil destined for global industries had been lost due to the disruption.
According to him, even if the Strait of Hormuz reopened immediately, it could take as long as 18 months to rebuild depleted global inventories.
In the United States, ExxonMobil more than doubled its second quarter earnings to $14.53 billion from $7.1 billion a year earlier, while Chevron posted earnings of $12.07 billion, almost four times the $2.5 billion it earned in the corresponding period of 2025.
The results were supported by stronger oil prices and exceptionally high refining margins as refiners capitalised on shortages of diesel, jet fuel and petrol.
BP also joined the list of major beneficiaries, reporting that its underlying replacement cost profit, its preferred measure of net income, more than doubled to $5.73 billion from $2.35 billion a year earlier, beating analysts’ expectations.
The British energy giant attributed the performance to stronger energy prices, improved trading results and higher refining margins, while announcing a four per cent increase in its quarterly dividend.
BP also disclosed plans to continue reducing its exposure to renewable energy by selling its US biogas business, Archaea, as part of its renewed focus on oil and gas under Chief Executive Officer, Meg O’Neill.
The strong earnings have intensified criticism that oil companies are profiting from a geopolitical crisis that has imposed significant costs on households and businesses around the world.
In his reaction, US President, Trump, has publicly rebuked ExxonMobil and Chevron, saying they had made excessive profits from the conflict and should pass some of the gains on to consumers.
“They’re making too much money based on a shortage. I don’t like it,” Trump told reporters at the White House.
Naming the companies directly, he said: “Chevron, too much money. ExxonMobil, too much money. They’re going to give some of that back to the public and they better cut the retail price, the consumer price.”
Trump also criticised Chevron Chief Executive Officer, Mike Wirth, accusing him of failing to acknowledge his administration’s role in supporting the US oil industry.
The extraordinary earnings have also reignited calls in the United States and Europe for windfall taxes on oil producers, with advocates arguing that companies should contribute more when geopolitical crises generate outsized profits while consumers bear the burden of higher energy prices.
Meanwhile, Africa’s largest refinery, the Dangote Petroleum Refinery, is targeting about $5 billion through an Initial Public Offering (IPO) expected to conclude in October, in what could become the biggest stock market listing in the continent’s history, a Reuters report said yesterday.
The planned listing is expected to provide fresh capital for the 650,000 barrels per day refinery as it pursues expansion plans, including increasing refining capacity and supporting the development of a similar facility in Kenya.
Reuters, citing sources familiar with the transaction, reported that the refinery has already submitted its IPO application to Nigeria’s Securities and Exchange Commission (SEC), with regulatory approval expected in the coming weeks. A prospectus is projected to be published in September ahead of the October listing.
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The primary listing is expected to be on the Nigerian Exchange (NGX), although stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have reportedly held discussions with the refinery’s advisers on ways to enable investors in their respective markets to participate in the offer.
According to one of the sources, Kenya’s capital market alone could contribute as much as $500 million towards the fundraising target, reflecting what was described as “tremendous” interest from institutional investors, including pension funds.
However, the sources noted that the final amount to be raised would depend on the size of the offer eventually approved by the Nigerian regulator.
The report did not indicate the percentage stake that would be offered to the public or the refinery’s final valuation. However, Reuters said a recent $2.5 billion private placement involving a 6 per cent stake implied a valuation of about $40 billion for the business.
If achieved, the fundraising would represent one of the largest equity offerings ever undertaken in Africa and would account for just over 4 per cent of the Nigerian stock market’s total capitalisation, estimated at about $116 billion.
The report noted that the valuation would place the refinery significantly above comparable standalone refining companies globally. Turkey’s Tupras, which has similar combined refining capacity across four refineries, has a market value of about $12 billion, while New York-listed HF Sinclair, with refining capacity of 678,000 barrels per day, is valued at roughly $16 billion.
According to the report, although the Nigerian Exchange requires a minimum free float of 20 per cent for companies listed on its main board, exceptions have been granted previously, including for Dangote Cement, whose free float stands at just over 12.7 per cent.
The sources also said there are currently no plans for a dual or cross-listing on other African exchanges. Instead, investors outside Nigeria may participate through structured investment instruments such as global depositary receipts or exchange-traded products that mirror the Nigerian-listed shares.
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The Dangote Refinery, built at an estimated cost of about $20 billion, commenced operations in 2024 and reached full operational capacity earlier this year. Nigeria’s state-owned oil company, NNPC Limited, owns just over 7 per cent of the refinery.
The refinery has emerged as a major supplier of refined petroleum products across Africa and into Europe, particularly jet fuel, benefitting from increased demand during the Iran conflict.
Reuters also said the refinery’s founder, Aliko Dangote, plans to use proceeds from the IPO to further expand refining operations and advance his ambition of reducing Africa’s dependence on imported fuels.
According to the report, Dangote also intends to develop a refinery on Kenya’s coast in partnership with East African governments, although it remains unclear whether proceeds from the IPO would be deployed for that project.
It added that investors in the offering are expected to have the option of subscribing in either naira or US dollars, while details of allocations to regional investors and any underwriting arrangements are still being finalised.
SOURCE: THIS DAY NEWS PAPER
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