Posted on 07/31/2008 8:27:59 AM PDT by gallaxyglue
Sparks fly as ExxonMobil profit tops 10 billion dollars
Jul 27 12:38 PM US/Eastern Surging oil prices helped drive quarterly profits for US energy giant ExxonMobil to 10.36 billion dollars, the latest in a string of mammoth profit reports that have drawn fire for the industry. The second-quarter profit was up 36 percent from a year ago and approached the company's all-time record profit of 10.71 billion dollars that was believed to be one of the biggest for any company.
Stoked by skyrocketing crude-oil prices, ExxonMobil's net profit in the quarter to June came to 1.72 dollars per share. That handily beat Wall Street forecasts for an earnings figure of 1.64 dollars.
Total revenues in the three months rose 11.8 percent from the same quarter of 2005 to 99 billion dollars.
In Congress, Democratic lawmakers said the sky-high profits reflected misplaced policies by the adminstration of George W. Bush.
"Americans are paying near-record gas prices, oil companies are reaping billions in profits, but the response from the Oil Men in the White House and the Republicans in Congress has been billions for Big Oil and a backhand to the American people," Senate Democratic leader Harry Reid said Thursday.
"It would be shocking in normal times, but it is standard procedure for Republicans in Washington."
The soaring profits of ExxonMobil and other oil groups have generated fierce criticism about the industry profiting from consumer misery, prompting some US lawmakers to call for a "windfall" profits tax.
The oil industry has countered by saying its profit margins are lower than many other sectors, and that much of the earnings are reinvested in new production.
ExxonMobil said it continued its "active investment program" in the second quarter, spending 4.9 billion dollars on capital and exploration projects. It also distributed 7.9 billion dollars to shareholders in the second quarter through dividends and share purchases.
ConocoPhillips, the number three US oil and gas firm, on Wednesday said its second-quarter net profit jumped 65 percent from a year ago to 5.2 billion dollars, buoyed by record petroleum prices.
Chevron, the second-largest US oil group, was to report its profit on Friday.
Globally, Anglo-Dutch energy group Royal Dutch Shell reported a net profit of 6.314 billion dollars. Britain's BP said earlier this week profits rose 22 percent to 6.118 billion dollars.
"BP used to stand for British Petroleum, now it just stands for Bloated Profits," US Representative Ed Markey said after the BP release, while arguing that the US administration is doing little to help consumers cope with soaring energy costs.
On Thursday, Markey added, "While American families get tipped upside down and have their savings shaken out of their pockets at the gas pump, the Bush-Cheney team devises even more ways to line Big Oil's pockets."
Meanwhile, Kimberly DuBord, analyst at the research firm Briefing.com, said ExxonMobil and other energy firms remain a good investment amid the strong prices for petroleum.
"The three largest oil and gas producers in the world generated profits of nearly 23 billion dollars in the second quarter," she said.
"Exxon reported another blowout quarter, earning a whopping 10.3 billion in just one quarter. Revenues rose 12 percent to 99 billion dollars -- marking the first time in history that a US company exceeded one billion dollars per day ... The profit growth of the supermajors is tremendous and the interim results continue to exceed expectations."
Copyright AFP 2005, AFP stories and photos shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium
Arrest the Oil Executives!!! Somebody call Maxine!
Go XOM!
The real irony is that Congress-critters will express outrage when the money to support government is ALWAYS taken by force.
Sparks and XOM in the same sentence sounds a bit combustible.
So friggin what! All this talk about record profits is nothing more than ENVY and JEALOUSY!
These company makes a product that is in global demand. This particular product is traded in an open market where it has ups and downs. When the commodity goes up, it’s more expensive. When it’s more expensive, the profit margin goes up.
SUPPLY AND DEMAND PEOPLE! GET OVER IT!!
Now, with that being said. If there is deliberate price manipulation and gouging, that’s when I have a problem.
This is so f**king stupid. Maybe if those jack a** in Capitol Hill actually did their job for once and allow some drilling and creation of some new reffineries. This “commodity” wouldn’t be so friggin high!!
UGH
If you can’t beat em, join ‘em. I bought shares.
An 8% profit margin. McDonald’s and Coca-Cola are both 18-19%. Will Nancy Pelosi scream and shout when her investments top 8%?
Enviormentalism is mind pollution!
And political leaders expect them to drill off-shore to reduce their prices??? Exxon leaders weren’t born yesterday, voters were if they expect price drops.
Mazda, Honda and Mitsubishi recently posted record profits. Harry Reid doesn’t seemed bothered by that.
A gallon of Organic Milk costs $7+. No one is bothered by that.
A cup of Budweiser or Coors at a ball game costs $8. Harry Reid is unconcerned.
I bet the profit comes from the increase in demand and not a rise in price.
Not quite what investors expected. Disappointing.
My temper is reserved for creepy congress critters.
Someone needs to explain to this writer that profit attracts investment capital. People invest where they can make a profit, which is to say, where there is a need. They don’t invest where there is no opportunity to make a profit.
When oil companies are making money, they are also spending it hand over fist. Thousands of people are working all the hours they can stand right now. They are pumping a tremendous amount of money out into the economy. Money doesn’t sit in someone’s bottom drawer. All the companies that service the oil companies are running white hot right now.
Hmmm...10.36B profit reflects 10.5% return on sales.
I'm sure these assorted critics have investment advisers they trust. Why don't they ask those advisers how to evaluate profit?
To ask the question is to answer the question...ignorance serves their purposes, and the ignorant are their audience.
I don't know if it's ignorance fueled by resentment of the free market, or resentment fueled by ignorance...but they're both there.
...on the part of the politicians, and the reporter who, in this case, may have been ashamed to attach their name to this steaming pile.
That’s OK. If the oil companies go broke like GM, we’ll all wind up walking. (and starving)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.