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 ...
Thanks.
Is this a good performance or a bad performance? Seven billion sounds like a lot, but if you have to invest seven HUNDRED billion in drilling platforms, R&D, drilling rights, etc. to generate this level of profit, then your annual return on investment is only four percent, and this is not an exorbitant return on investment. My point is that the absolute profit amount is only meaningful if you also know the return on investment.
"whereis all this extra money going"
To the speculators. They aren't LOSING yet. Much like the .com bubble, there will be a lot of people eating their shirts when this one bursts.
You have got to be kidding me. You mean that the government AND the oil companies have their hands tied? You mean to tell me that the government gets MORE tax dollars because of the price gouging???
Democrats AND Republicans rule here. You just need to sit and watch while you are being raped. Put some ice on it.
Some state, federal taxes are on a per gllon basis, but sales taxes are on the total sale.
People will adjust and cope. Just as they always have.
Folks, the Republicans have found their energy plan to reduce our dependence on foreign oil. People just haven't realized it yet.
How many of us have changed our habits? I know I walk, ride my bike, got a motorcycle that gets 60mpg, etc., and I CAN afford the increase (so far).
And the funny part is that the left has gotten what they always wanted - higher gas prices. It just galls the p*** out of them that it's the oil companies getting the money and not government.
I just took a new job for $6.00 an hour more than I was making so I am not hurting as much as the person making minimum wage. Wait until the minimum wage goes up and hear all the people on FR start b!tching. Fair, no?
Yep, them too.
Has anyone heard of a tanker truck strike? Just talked with our daughter and our grandson had called her and said he had heard there was going to be a strike.
Why would oil companies invest in new resources when refining is maxed out? Or is that just a myth?
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.
In the party of Dean and Moore? You must be dreaming?
This has nothing to do with free enterprise. The Oil companies are making a huge profit providing goods and services that customers are forced to buy. The Oil Companies have a monoply because back in the 1980's they bought enough corrupt politicians to effectively kill all research in alternative fuel sources. Otherwise today we would have alternatives to being raped at the pump everytime we have to go to work.
BTY: My true blue Bullitt Mustang GT loves Tejas Tea ;-)
"in the 1980's they bought enough corrupt politicians to effectively kill all research in alternative fuel sources. Otherwise today we would have alternatives to being raped at the pump everytime we have to go to work."
so whats the problem?? don't like being raped or that you have to go to work??
Having to pay to get raped on the way to work is just adding insult to injury.
Exxon like any company operates on margins. If the cost of goods gopes up the margin remains the same, then the gross and net income will also rise.
Anyone who is shocked that oil company profits are on the rise needs to go back and study economics...
Let me guess, Exxons profits rose around about the same in terms of percentage as did the price of oil?
Funny how that works...
"Having to pay to get raped on the way to work is just adding insult to injury."
some easy answers:
1. invest in oil co's get paid while others get raped
2. find a job you can walk to
3. understand there are no alternate energy solutions that can help now it takes decades and large oil is investing in that tech with the profits from todays gas sales- exxon is not an oil co it is an energy co.
4. retire and save all that gas.
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