Posted on 04/27/2006 9:52:05 AM PDT by VU4G10
Exxon Mobil Corp., the world's largest oil company, reported Thursday the fifth highest quarterly profit for any public company in history, posting gains from higher oil prices that were likely to stoke the furor over outsized oil company earnings.
Despite the 7 percent gain in earnings to more than $8 billion in the first quarter, Exxon Mobil said its earnings came in below its record fourth-quarter because all three of its business _ exploration and production; refining; chemicals _ didn't perform as well.
The earnings report comes amid consumer outcry in the U.S. about soaring gasoline prices. The average retail price of gasoline in the U.S. is now $2.91 a gallon, or 68 cents higher than a year ago.
It also comes as Washington lawmakers are looking to appease consumers with various proposals to make big oil companies pay more taxes or provide consumers with some other relief.
In January, Exxon posted the highest quarterly profits of any public company in history: $10.71 billion for the fourth quarter of 2005 and $36.13 billion for the full year.
In the first quarter, net income rose to $8.4 billion, or $1.37 per share, from $7.86 billion, or $1.22 per share, a year ago. Excluding a gain on the sale of an interest in China's Sinopec, the company's year-ago profit was $7.4 billion, or $1.15 per share.
But analysts polled by Thomson Financial were looking for a higher profit of $1.47 per share for the latest quarter, and shares fell $1.02, or 1.6 percent, to $62.08 in morning trading on the New York Stock Exchange.
Howard Silverblatt, a senior index analyst for Standard & Poor's, said the latest profit figure still places Exxon fifth historically among quarterly earnings. Exxon also holds the first, second and fourth spots; Royal Dutch Shell PLC has the third spot.
The company said its average sale price for crude oil in the U.S. during the quarter was $55.99 per barrel compared to $42.70 a year ago. It sold natural gas in the U.S., on average, for $8.31 compared to $6.18 during the same period one year ago.
Earnings from exploration and production of oil and gas rose to $6.4 billion from $5 billion a year ago. Refining profits fell from $1.4 billion to $1.2 billion and profits from its chemical business fell to 949 million from $1.4 billion
Revenue grew to $88.98 billion from $82.05 billion a year earlier. Higher crude oil and natural gas prices and improved marketing margins were partly offset by lower chemical margins.
Placed in perspective, Exxon's revenue for the three-month period was still greater than the annual gross domestic product of some major oil producing nations, including the United Arab Emirates ($74.67 billion) and Kuwait ($55.31 billion), according to statistics maintained by the Central Intelligence Agency.
Exxon said it invested $4.8 billion in capital and exploration projects, a 41 percent increase from 2005.
"In the first quarter of 2006, the results of our continuing long-term investment program contributed to a 5 percent increase in production," Exxon chief executive said in a prepared statement.
Exxon also said it returned $7 billion to shareholders through dividends of $2 billion and buying back $5 billion worth of shares.
the sum of your posts are a classic definition of envy. Most often those consumed by envy are incapable of realizing it. Thank God I don't have your common sense. Read Stockstrader's post for some rational thought in action.
I didn't expect a coherent repsonse from you,,,again, nice try.
>And you can't even BUY BOTTLED WATER AT THE STORE FOR LESS THAN THAT! Thanks for making my point.
This reminds me of the the time I watched a guy buying gas while loudly complaining about the price of a gallon of gas.....with a liter of fancy bottled water in his hand. The liter of bottled water cost more then a gallon of gas! BTW, I know people that spend more money on fancy coffee then they do on gas. Those evil big coffee companies!
>>>Gasoline costs the same as water at the store>>>
Really? You know where to get gas for a dollar a gallon?
It's incredible the convoluted logic some use here. Gas is unbelievably cheap for what's involved in its finding/transport/refining/blending/insurance. Again, many here think they have a NATIONAL BIRTHRIGHT TO CHEAP GAS. A country that imports 60% of its oil has no right to complain about high gas prices--it is nothing more that petulant whining.
It's incredible the convoluted logic some use here. Gas is unbelievably cheap for what's involved in its finding/transport/refining/blending/insurance. Again, many here think they have a NATIONAL BIRTHRIGHT TO CHEAP GAS. A country that imports 60% of its oil has no right to complain about high gas prices--it is nothing more that petulant whining.
Sure,,,,but you wouldn't want to go there. Try Venezuela,,,water is probably cheaper there too...lol
>>>the sum of your posts are a classic definition of envy. Most often those consumed by envy are incapable of realizing it. Thank God I don't have your common sense. Read Stockstrader's post for some rational thought in action.>>>
I noticed you also posted this to stocktrader. So should I change your nickname to Peppermint Patty since you seem to have a natural affection for buttkissing?
And thanks for not actually disputing my argument but just calling me jealous instead. Nice going.
I'm just curious - how much does the profit equal on a per gallon basis? In other words, if Exxon distributed all or part of the profit back to consumers on a per gallon basis, how much would gas be lowers per gallon. I suspect not much, but I could be wrong. I suspect that it's like gathering a few cents from everybody - something that I always dreams of doing - sort of like Bill Gates.
Yes, but the 18.4 BILLION dollars is a tax is on US! The 150K salary is taxed as income. He is still paying taxes everytime he fills up his Beemer! Add that to his SS Tax, his Medicare tax, his excise taxes on tires etc. and if he lives in an income taxing state, it's even worse! he's busting his arse to feed the tax GREED of DC POLS!..............and yes, I do mean GREED!..........The only difference between a looter politician and a looter in a disaster is the looter in the disaster is breaking the law........
So it bothers you that others see how skewed and pathetic you logic is too? Why am I not surprised?...lol
>>>Nice try--no logic on your part at all. I notice you conveniently IGNORE my logic and assertion that gas is CHEAP--and that supply/demand is always a factor which is exacerbated by govt intrusion. >>
OH I see. If I don't shudder at your oh so impressive logic that GAS IS CHEAP GAS IS CHEAP GAS IS CHEAP GAS IS CHEAP GAS IS CHEAP GAS IS CHEAP, then I have no logic.
Whatever. Go impress Peppermint Patty/liberty, you don't impress me.
National birthright to cheap gas, blah blah blah
Do you realize how ignorant you look repeating the same phrase like a parrot?
Did your yankchord get stuck?
>>>Sure,,,,but you wouldn't want to go there. Try Venezuela,,,water is probably cheaper there too...lol>>>
I wouldn't put the gas in my car, or the water in my body, lol.
C(h)itgo. Gas AND water applies.
Since you can't dispute my assertion and my logic,,,you respond with a petulant effort like that?
That wasn't even a nice try. Oh well, have a nice day anyway...:)
Have a nice day. When you have something to offer in the way of facts or logic, please speak up. Otherwise, have a nice day...:)
Nope. No price gouging here. Nothing to see, move along...
Bingo. There are many people,including some FReepers, who do not understand return on sales. Probably the same ones who "borrow" money on their credit cards and pay 18% interest.
Sorry, multitasking is not a good thing. I should concentrate more on FR. ;)...
Companies do not "make" money. Hopefully their earnings are positive. In the late 70s and early 80s, oil companies like Texaco were hemorraging red ink. They had to sell very profitable assets (chemical division) in order to meet their expenses.
There are too many folks with the burger-flipper mentality, who do not understand business.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.