Posted on 10/27/2005 6:01:24 PM PDT by Wuli
WASHINGTON (AFP) - Exxon Mobil posted a quarterly profit to 9.92 billion dollars, the biggest in US corporate history, putting the oil industry in the spotlight over surging energy costs. ADVERTISEMENT
Revenues topped an unprecedented 100 billion dollars for Exxon Mobil on record oil and gas prices, even though the company took a hit from hurricanes Katrina and Rita.
The profit was the highest ever for a US corporation, analysts at rating firm Standard and Poor's said.
The Texas-based company, the world's largest petroleum firm, downplayed the results in the face of growing concerns in Congress and elsewhere about firms reaping windfall profits from record oil and gas prices.
"Our earnings in the third quarter reflect the impact of the relatively volatile industry environment on commodity prices and industry margins," chairman Lee Raymond said.
Despite concerns about skyrocketing fuel costs for consumers, Raymond said ......
(Excerpt) Read more at news.yahoo.com ...
It means a whole lot less than what the media (Today Show, et al) are going to make of it tomorrow morning.
Why?
On revenue of $100.7 billion a pretax profit of $9.92 billion represents a pretax profit margin of just 9.95%.
By comparison, Dell Computer's latest pretax profit margin was 9.18%, IBM 12.74%, GE 14.52%, Citibank 30.01%, JP Morgan 17.91%, Pfizer 15.54%, Berkshire Hathaway 9.72%, Viacom (CBS) -75.85% and big bad (sarcasm) Walmart 3.59%.
Can you call the Exxon profits excessive? No. But you can sure see why CBS would be complaining about them.
Viacom made 75.85% profit and I don't own any?
You just nailed the key stat right there. Exxon's profits only look gargantuan because of the scale they operate on. Most people who owned a mutual fund that only returned 9.95% during a Bull Market for stocks would not brag. Exxon only returning 9.95% on it's capital during a price spike in the commodity it sold is almost frightening. Excellent reason to consider shorting the stock.
Dammit. I knew I should've invested in Exxon Mobil.
They make less percentage wise on a gallon of gasoline than the government and the oil companies make the stuff.
They're also just now getting to a 10% profit margin. How has it been since that happened?
Not permitted to drill.
Not allowed to build refineries.
hmmm... what to do... guess i keep the money as profit...
Louie didn't have government mandates and taxes that Exxon has. In fact, tea was thrown overboard for less.
God bless capitalism.
Take a bus, car-pool, ride a bike, walk ... but please stop whining.
They'll have to get in line behind me.
I hate to tell you, but I saw ALL the MSM networks, plus the cable news channels (Fox News, CNN & MSNBC) yammering about the evil, unprecedented oil profits on today's news. In fact, it rivaled the Mires news!
Every talking head had their upper lip curled (read snarl). These damned oil companies better find some PR people worth their profits to defend this socialist grab before it gets legs. Time to nip it in the tank, if you know what I mean.
Tom, you are a fool and have no idea what you are talking about.
How much does it cost to drill and search for oil? What is the cost of government regulation? How much of this 'profit' is being turned directly into infrastructure and research?
ConocoPhillips is building a $20 billion gas pipeline to bring natural gas from Alaska to the lower 48. The high prices now will pay off greatly in the future.
EXACTLY.
Wall Street downgraded their stock on the news.
A caller on Rush's show made the same point the other day. He said the oil companies' big revenues lead to these big, unseemly-looking profits because the oil companies can't sink the revenue into capital improvements as easily as other industries can. Why not? Because the government makes capital projects -- like building new refineries -- difficult to undertake thanks to all the regulations (environmental regs, etc.).
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