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 ...
Free enterprise IS at work here but it may come to a point where the population says enough is enough. Perhaps a nation wide trucking strike? The price of everything is going up except wages. At what price will people just get fed up?
Does anybody have any good numbers on what worldwide demand actually is? I heard on the radio that worldwide demand was only up 1% from this time last year, but they didn't provide a cite for a source. Anyone know a good site to track worldwide demand over the last, say, 3 years?
OK, I'll buy that. However, my demand hasn't gone up a wit in 10 years, and I would say the same goes for my neighbors. Is it China driving up the demand?
Funny you say that. You know, when we went into Iraq, I would have bet the price of gas would have dropped a little. Boy, was I ever wrong.
This is free market. Every whiner on this thread had ample time at the outset of the Iraq war to plop down one or two thousand dollars on oil futures.
Get over it.
as an XOM shareholder ... SWEET!
Not trying to be a whiner, but are you saying the war did this to the gas prices?
We have a move-mint going on here brothers and sisters.
Now before you can say, "Butter my buns and call me biscuit" somebody is gonna ask "Wonder how much the government is making off tax revenues on a gallon of gasoline/diesel fuel."
I think its grand. My dad's estate is built on Exxon-Mobil stock.
I get what you are saying, but it is not technically correct. The speculators do in fact increase demand by their activities, so demand is up.
You do realize that the last refinery built in this country was in 1976, don't you? You do realize that different states have different requirements for additives? Do you also know that the left has hamstrung domestic drilling? Even if the companys could drill and produce the oil, where would it be refined?
Right, except Exxon is not just refineries and gas stations, Exxon also drills a lot of oil, so the profits should rise as oil prices do. I would bet that most of the Exxon profit increase is coming from just this source, as opposed to refining, marketing (gas stations) and other things that they do (chemicals).
Somebody could run on this platform, and could win, based on the fact that vast swaths of society are stupid. The result would be disasterous.
Okay, let me get this straight. Demand goes up by 1.4%, and the price goes up by 78% (if I've done my math correctly). That fact alone tells me something is seriously screwy here.
You kind of have to be if you want to pump much oil.
Happy you had the foresight and the extra cash to make us all pay more for gasoline. Congratulations. :-)
It is going into the pockets of all of the companies along the supply chain. Some of it goes to pay dividends to shareholders, but most of it goes to reinvesting in new resources so that the companies will continue in the future.
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