Posted on 08/17/2005 2:09:32 PM PDT by WmShirerAdmirer
No. 1 oil producer beats forecasts, helped by bullish crude prices, but supply concerns weigh.
NEW YORK (Reuters) - Exxon Mobil Corp., the world's largest publicly traded oil company, posted a 32 percent rise in quarterly profit Thursday, fueled by a relentless surge in crude oil prices and strong refining profits.
But a more than 4 percent drop in oil and gas production in the second quarter tempered much of the enthusiasm, adding to Wall Street concerns that large oil companies are finding it increasingly difficult to boost output.
Nevertheless, like its peers, Exxon (down $0.34 to $59.26, Research) has continued to bask in the glow of an extended bullish run in oil and gas prices, spurred by soaring demand in Asia and increasingly stretched global supplies of crude. Oil prices topped $62 a barrel earlier this month to touch yet another record high.
Persistently strong refining and marketing margins also helped boost the company's bottom line.
"Oil and gas production volumes (and earnings) were disappointing in the quarter, but this was offset by a now-familiar bonanza in the refining and marketing division - particularly in the U.S.," Credit Suisse First Boston analysts said in a research note.
Net income was $7.64 billion, or $1.20 a share, in the second quarter, compared with $5.79 billion, or 88 cents a share, in the year-earlier quarter.
Excluding a $200 million charge for a lawsuit provision, the company earned $1.23 per share. Analysts, on average, expected Exxon to earn $1.22 per share, according to Reuters Estimates.
The Irving, Texas company, which has maintained a large stock buyback program as its cash pile soars alongside oil prices, said it would further increase its share repurchase level to $5 billion in the third quarter.
(Excerpt) Read more at money.cnn.com ...
Newspaper here says consumers are "as mad as Hell" about gas prices (went up to $2.72 yesterday at Shell station) but paper doesn't say, that they're not going to take it anymore.
What's your view out there?
Gas prices are up on SPECULATION - not supply and demand. Duh.
Nothing to see here....Move along.
Praise Jesus!
Somebody besides me gets it!
Hallelujah! Amen!
I can see Mobil/Exxon's REVENUES going up due to the increasing price of oil. But if their profits are going up too, it simply means that more than just the extra price of oil is being passed onto the consumer.
Some people can't figure out that the oil companies make a percentage of profit from a gallon of gas. 10% of $2.50 a gallon is a whole lot more than 10% of $.99, and they haven't changed a thing. People whining about the big oil companies making all this money don't even realize they haven't changed a single number since this whole run-up started unless to account for inflation of supplies.
I agree completely and would add that the speculators are the big oil companies themselves.
If a democrat could credibly run on a defend the borders platform along with a Teddy Roosevelt "bust the monopolies" strategy against Big Oil, you would see a landslide. A republican couldn't do this because the oil money would propel a primary opponent to the nomination.
Clue me in here. If the speculators are wrong than they lose money when the contract is called? Where is all of this extra money going now that we are paying?
They're a huge outsource/offshore company as well. Nasty business.
Free enterprise at work. A company making a profit providing goods and services that customers want. But I expect the RINOS to weigh in shortly.
It was during the clinton admin that the disaster happened.. Too many consolidations in oil companies. I bet a lot of the increases are directly from the oligarchy situation that exists now.
EXXON? Isn't that the co. that puts a Tiger in your tank?
Good question.
My only answer to that is, it's going out of my pocket and into someone elses.
You accuse EXXON of gouging. Your proof is......?
By definition, any major petroleum company have major offshore operations--in many cases, quite literally! For example, BP (formerly British Petroleum) owns ARCO and has huge investments in oilfields in Alaska and the Gulf of Mexico--and BP is one of the "smaller" petroleum multinationals compared to bigger ones like Exxon Mobil, Royal Dutch Shell, Chevron, TotalFinaElf, etc.
Exactly. Without evidence of collusion with other gas companies this should a non-story, but it makes excellent fodder for demagogues.
No, I mean office operations and IT. Accounting, everything. Very little is done now in the USA there.
How can that be? I thought the oil companies were in bed with Bush/Cheney. Isn't that what the DUmmies keep telling us?
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