Major Oil Companies Post Record Q2 2026 Profits on Rising Brent Prices Despite Operational Headwinds

ExxonMobil led in absolute terms with $14.5 billion in net profit for Q2 2026, followed by Chevron at $12.1 billion, Shell at $10.8 billion, and Petrobras at $10.1 billion. These four companies accounted for 56% of total net income among the comparable group. The aggregate result reflected recovery from a weak first quarter when Brent traded at depressed levels on oversupply expectations before spiking following the Iran conflict escalation in late February.

ExxonMobil reported net income of $14.5 billion despite a 45% year-over-year decline, with CEO Darren Woods attributing roughly $4 billion in negative impacts to temporal hedging mismatches where physical deliveries had not yet occurred. The company warned that production could fall by up to 750,000 barrels per day if the Strait of Hormuz remains closed through Q3 2026, affecting approximately 15% of total output. Refinery throughput is expected to decline 3%, with logistics normalization potentially requiring two months after reopening.

Chevron posted $12.1 billion in quarterly profit, up 446% sequentially, though down 36% year-over-year. The company absorbed $2.9 billion in hedging-related charges but demonstrated greater geographic resilience due to limited Middle East exposure relative to operations in the Americas, Asia, and Africa. Production reached 3.9 million barrels per day, up 15% annually.

Petrobras emerged as the most profitable oil major in dollar terms during Q1 2026 with $6.25 billion in net income, surpassing Shell’s $5.69 billion and ExxonMobil’s $4.18 billion. The Brazilian state company’s advantage stemmed from favorable currency translation as the real strengthened from an average R$5.85 per dollar in Q1 2025 to R$5.26 in Q1 2026, combined with continued low lifting costs from pre-salt offshore fields. By Q2 2026, Petrobras reported net income of R$52.4 billion ($10.4 billion), representing 97% growth year-over-year, driven by record oil production of 2.7 million barrels per day and refinery utilization rates exceeding 101%.

Profitability metrics revealed structural advantages for certain producers. Petrobras maintained a net margin of 30.97% and EBITDA margin of 55.36% in Q2 2026, substantially ahead of comparable integrated majors including ExxonMobil (12.83% net, 24.46% EBITDA), Chevron (17.43% net, 33.14% EBITDA), Shell (11.21% net, 23.92% EBITDA), and BP (6.18% net, 19.42% EBITDA). Occidental Petroleum recorded the highest net margin at 35.98% despite being the only company in the survey to report sequential profit decline.

Dividend distributions followed profitability trends. ExxonMobil paid $4.3 billion in Q2 2026, Chevron $3.5 billion, Shell $2.2 billion, and Petrobras $1.5 billion. Petrobras reduced its dividend from $2.2 billion in Q1 despite 62% profit growth, reflecting a 2023 policy change that lowered the payout ratio from 60% to 45% of free cash flow while simultaneously increasing capital expenditure allocations.