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Sparks fly as ExxonMobil profit tops 10 billion dollars
Breitbart.com ^ | Julyl 27, 2008 | anonymous

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


TOPICS: Business/Economy
KEYWORDS: energyprices; exon; oil; oilprices
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1 posted on 07/31/2008 8:27:59 AM PDT by gallaxyglue
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To: gallaxyglue

Arrest the Oil Executives!!! Somebody call Maxine!


2 posted on 07/31/2008 8:31:45 AM PDT by Coffee200am ("We should all be living in mud huts and riding bicycles to avoid killing the polar bears..."/s)
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To: gallaxyglue

Go XOM!


3 posted on 07/31/2008 8:32:26 AM PDT by Niteranger68 (When it comes to Obama, just keep the change.)
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To: gallaxyglue
Big deal. They make a 10% profit from folks who volunteer to pay them for their products, while their competitors are probably lining the streets around them.

The real irony is that Congress-critters will express outrage when the money to support government is ALWAYS taken by force.

4 posted on 07/31/2008 8:32:34 AM PDT by keithtoo (Why aren't the Republicans running a presidential candidate this year?)
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To: gallaxyglue

Sparks and XOM in the same sentence sounds a bit combustible.


5 posted on 07/31/2008 8:35:19 AM PDT by cw35
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To: gallaxyglue

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


6 posted on 07/31/2008 8:38:59 AM PDT by cups
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To: gallaxyglue

If you can’t beat em, join ‘em. I bought shares.


7 posted on 07/31/2008 8:41:33 AM PDT by rhetorica
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To: gallaxyglue
I wonder why these pathetic toadies never talk about the record tax receipts that they STEAL from us everyday. Then waste most of that money on worthless crap we don't need.
8 posted on 07/31/2008 8:42:09 AM PDT by unixfox (The 13th Amendment Abolished Slavery, The 16th Amendment Reinstated It !)
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To: gallaxyglue

An 8% profit margin. McDonald’s and Coca-Cola are both 18-19%. Will Nancy Pelosi scream and shout when her investments top 8%?


9 posted on 07/31/2008 8:48:12 AM PDT by Teacher317 (Thank you Dith Pran for showing us what Communism brings)
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To: gallaxyglue

Enviormentalism is mind pollution!


10 posted on 07/31/2008 8:49:03 AM PDT by CyberSpartacus
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To: gallaxyglue

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.


11 posted on 07/31/2008 8:56:14 AM PDT by ex-snook ("Above all things, truth beareth away the victory.")
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To: gallaxyglue

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.


12 posted on 07/31/2008 8:57:29 AM PDT by sappy
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To: gallaxyglue
The current stock price
13 posted on 07/31/2008 8:57:58 AM PDT by bmwcyle (If God wanted us to be Socialist, Karl Marx would have been born in America.)
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To: gallaxyglue

I bet the profit comes from the increase in demand and not a rise in price.


14 posted on 07/31/2008 9:02:49 AM PDT by Vision (The light of the body is the eye, if your eye is true all your body will be full of light. Matt 6:22)
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To: gallaxyglue
Don't even bother telling me about profits in dollars. Tell me in percent of revenue. I've spent a cereer working govt. contracts at 12% to 14% profit. I'll bet the oil Co’s. are running about 6% to 10%.
15 posted on 07/31/2008 9:11:55 AM PDT by cannonball
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To: gallaxyglue

Not quite what investors expected. Disappointing.


16 posted on 07/31/2008 9:13:48 AM PDT by RightWhale (Exxon Suxx)
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To: gallaxyglue

My temper is reserved for creepy congress critters.


17 posted on 07/31/2008 10:02:52 AM PDT by pallis
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To: gallaxyglue

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.


18 posted on 07/31/2008 10:11:03 AM PDT by marron
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To: gallaxyglue
Total revenues in the three months rose 11.8 percent from the same quarter of 2005 to 99 billion dollars...

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.

19 posted on 07/31/2008 10:28:27 AM PDT by gogeo (Democrats want to support the troops by accusing them of war crimes.)
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To: gallaxyglue

That’s OK. If the oil companies go broke like GM, we’ll all wind up walking. (and starving)


20 posted on 07/31/2008 10:46:13 AM PDT by TexasRepublic (When hopelessness replaces hope, it opens the door to evil.)
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