Exxon profit surges 27 pct, capping record year

myway news ^ | Monday January 30, 8:16 AM EST | reuters

[RedBloodedAmerican]

NEW YORK (Reuters) - Exxon Mobil Corp. (XOM), the world's largest publicly traded oil company, on Monday reported quarterly profit surged 27 percent, capping a record year dominated by soaring oil and gas prices.

Net income in the fourth quarter was $10.71 billion, or $1.71 a share, compared with $8.42 billion, or $1.30 a share, a year earlier.

Excluding one-time items, the company earned $1.65 per share. Analysts, on average, expected $1.45 per share, according to Reuters Estimates.

Crude oil prices rose about 40 percent last year, driven up by tensions in oil-producing countries like Iran and Nigeria and tight supplies.

Exxon's fourth-quarter revenue jumped to $99.66 billion from $83.37 billion a year earlier but fell short of analysts' average forecast of $101.29 billion.

Exxon shares were up 2.5 percent at $62.82 in pre-market trading on the Inet electronic brokerage system.

[linda_22003]

Yes, I did. I didn't click on the links (anyone who spells the company as "Mobile" is not reliable), but I read your text. Please tell me about the prosecution of Standard Oil after the war. And of other companies who did international business with Germany. Thanks.

[fedupjohn]

From a capitalist, what is their margin? If it's under 25% net then the leadership should be fired.
I think it's 10%.

[fedupjohn]

Wonder how many Congress critters own Exxon stock...?

The last time I saw stats,: 70% of energy stocks are owned by pension funds. Most energy jobs are union. I rest my case.

[stockstrader]

So OPEC sets the 'market' price? Oh really? They try,,,and they certainly have the major influence, but have had several 'breaks' in their market-setting efforts in the last several years. No one sets a 'market price'!! The market does. They may try, they may have a big influence, but even they don't 'set the market' price.

According to some others here, those big, nasty, old, mean oil companies do that through their 'collusion'! Now which is it? OPEC?,,,,or the big, nasty, old oil companies?,,,,or are 'all of the above' in the collsion efforts?..lol

[stockstrader]

So you feel, like mysterio, that a 7% profit margin is excessive--when the average US company operates at TWICE that level? I will give you the same suggestion that I gave him. I suggest that you write your congressman, and demand that obscene oil company profits STOP. Ask that he sponsor legislation to either:

(1) Tax the oil company profits at a higher level--so that they will then have more incentive to find and produce more energy. We all know that more abundant and cheaper energy will result...lol,,,or

(2) Let the government decide what a 'fair profit' is--and confiscate any profits from any company ABOVE that level, and give them to energy companies BELOW that level. This, too, will help provide more incentives to find more abundant and cheaper energy. sarcasm--off

[stockstrader]

I couldn't agree more. The mean, old, nasty, oil companies operate at 7% profit margin, while the health care industry operates at a 25% margin. Of course, the oil companies are 'ripping us off' and the health care industry (which, of course, we do not need either, like we don't need milk, juice, cooking oils, soda, etc) in NOT 'ripping us off'. sarcasm--off

[mysterio]

It will come to light. Someone will leak. They always do, and now the heat is on, so they will be under scrutiny. Believe it or not, the envirowackos and the oil companies have a synergistic relationship, and each gets a lot of momentum from the other. Enviros make it impossible to build new refineries, and the oil companies shut them down one by one, constraining supply, while demand has gone up almost 50%. Why build more? They shut down the ones they have periodically, and each time they do, they reap a huge profit. You have to give them credit for playing the situation. They turned an ugly situation for them into the one that is most profitable out of any situation. Crisis and opportunity.

Unfortunately, we aren't talking about an Ipod like widget or Microsoft. People buy oil either directly or indirectly, so this is just eating up disposable income and causing personal debt to balloon. And it's going to result in a bigger welfare entitlement state and more government power as people look to the government to subsidize unaffordable fuel and heat. But that's ok. Because they can just "choose" not to go to work or heat their houses, right?

Spam away.

[mysterio]

And stop using my name in your strawman. I never advocated government price controls. If and when any evidence of collusion or price fixing between "competitors" comes to light, I support an active anti-trust investigation. That's it. Am I clear, or do you need me to repeat that another five times?

Stop wasting my time with strawmen.

[stockstrader]

Strawmen?,,,lol

I can summarize your position quite easily, since you could NOT corroborate anything you said. How this for summarizing your position,,,

"The big, bad, old, meany oil companies are engaged in COLLUSION. I have no proof, can't prove anything, but someday someone will--just as soon as we find that darn letter to prove it!"!!

Is that what you mean by a strawman?...lol

[stockstrader]

And how about that darn COLLUSION that is now occuring in the natural gas market with those darn big energy companies. Natural gas is a big contributor to oil company profits--in case you didn't know. Hmmmm....let's see here, the price of natural gas was almost $15/million BTU in November. Five minutes ago, it was about $8.50/million BTU--about a 40 drop!! Pretty impressive collusion, huh?

Yep, let's here your response to THAT 'collusion'!!

[mysterio]

No, every time you bring up my name in a post, you try to tie me to windfall profit taxes and price controls. You are associating me with an argument that I didn't make, and then trying to shoot down that argument.

[stockstrader]

Where did you come up with that one? Check out my last two posts, where I ONLY summarized your entire argument which basically is,,,,

"The big, bad, old, meany oil companies are engaged in COLLUSION. I have no proof, can't prove anything, but someday someone will--just as soon as we find that darn letter to prove it!"!!

I noticed that you did NOT dispute my summary of EVERYTHING you had to say! THAT is review of your ENTIRE position--especially when pressed for facts!

[mysterio]

You and your buddies must have forgotten to spam up a fake crisis to keep natural gas high. There goes your bonus this month.

Don't worry, the price will shoot right back up, especially with stupid state governments subsidizing heating bills. Out of the taxpayer's checks and right into your pocket.

[mysterio]

When two oil companies decide to cut refining capacity to keep prices high because of a warmer than expected winter, fixing of prices isn't much of a stretch.

When they do it on the same day, collusion isn't much of a stretch, either.

But keep vomiting out your mantra of "no evidence."

[fedupjohn]

In the late 90's and early 2000's,I ran major construction in NYC for a big construction company. My 'nut' was $400K a month. If I did'nt net in the field 30% to hand to corporate, I would be fired.
BTW, my crew was killed, in WTC 2, on 9-11 and I have not been back since.

[stockstrader]

Wow, once again, nothing of substance. You just keep on with your 'conspiracy theories',,,just watch out for those darn grassy, knolls, ok?....lol

No need to 'vomit' anything here, you seem to have that market locked up quite well!!

Still waiting for ANY evidence, though, as so far you have offered nothing but speculation, conspiracy theories, dreams of collusion, unsubstantiated rumors, baseless accusations and just plain liberal, populist tripe. Yep, lots of evidence and substance there!! (rolling eyes)...lol Good luck finding that 'mystery letter'!

[stockstrader]

Sorry about your crew, so sad. My sincere condolences.

Where there is greater risk, there must be greater profit. Yep, it truly amazing that there are some here that think that a 10% profit margin is somehow obscene!! Amazing. As you said earlier, most managements would be fired for a profit performance that bad!

Heck, even health companies are running a 'profit margin' of 20% or more. I did a random check of Johnson and Johnson and Merck, and BOTH health-care companies are running a margin of 20%. And that 20% is the norm or less. I guess that we don't NEED health care companies or drugs either, right mysterio?...lol

So let me get this straight. So health care companies and drug companies are NOT gouging us with their 20-25% profit margins, but oil companies ARE with their 7-10% margins???? Say what? Ooops, I forgot, we don't NEED health care or drugs like we do oil, right?...lol

[flaglady47]

Why... My stock is up this morning big time...

Good, you can use the profits you make to pay for the higher gas prices at the pump. Garbage in, garbage out.

[jdsteel]

No that is not the way it works. Absent any regulation, all industries would form monopolies to the point of diminishing returns. As to the second point Profit = Revenue-Cost. Somehow, people are duped into beleiveing Cast is directly proportional to profit. I don't care how much the price of a barrel goes up, there is no direct correlation between cost and profit. Simple mathematical reality.

Once again, we agree to disagree. Monopolies have existed in the past, it is true. Regulation was used to break them up, it's true. However, your assumption that all industries would form monopolies to the point of diminishing returns is a false one. Your second point, that there is no direct correlation between cost and profit is not based in the real world. Of course, it is not the only dynamic involved. In this case, supply of finished product (gasoline) was impacted by natural disaster for a period of time. Price of gas goes up to the point of demand. Profits are made that spur the creation and distribution of (temporarily very profitable) gasoline. Supply is increased through conservation and increased production. Prices come down. The BEST thing that the President did was to suspend the stupid, ridiculous EPA requirements that messed up the distribution system so badly. The next things to do is provide refineries opportunity to build without the current daunting legal, social and environmental risks. I like his idea of using closed military bases. Then, drill in ANWR ASAP. Next, give encouragement with tax incentives to build 10 new nuclear power plants domestically. We'd reap the benefits in less than a decade.

[stockstrader]

Great post and excellent analysis. The 'market' has a built-in self correcting bias. It never corrects completely--as supply and demand never has a perfectly linear relationship, and as you stated, there are many, MANY dynamics involved.

Let the market work. When prices go up, people buy more efficient cars and use less energy. The last thing in the world we need to do, is PENALIZE our oil companies for being productive, efficient and profitable.

Again, your discussion is 'spot-on'!!!