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.
>>>My point is that if families are forced to stop spending in other areas, such as clothing, food out to dinners, etc... then the economy will eventually suffer. Since the clothing store's profits will fall, the waitress will not make as much and be forced to spend less herself, etc...
But you go ahead and root for the big oil to make billions of dollars. They will be the only ones.>>>
Show me in the Constitution where it says we have a RIGHT to cheap gas. I don't remember reading that. Why don't you take your frustration of paying for high prices at the pump out on our GOVERNMENT instead of these big, bad, evil oil companies that you don't like. The GOVERNMENT makes far more money off of gas prices than oil companies do. Why can't you understand that?
Democrats, socialists and liberals (RINOs not included), please note:
The oil business is REALLY profitable right now. Start up a company while you still can. There's no law keeping you from making these kind of profits. What? You don't want to take the risk? Oh... I was kind of hoping you'd pile on, so the prices would drop down to below the cost to extract it. What? You don't like the risks of making deals with the likes of Chavez, dictators in Africa, greedy princes in the Middle East? How will we ever get the oil to feed our economy if everyone is so scared? I guess we'll have to count on reliable and well-run companies like Exxon-Mobil.
Intel: 22.2%
Microsoft: 36.6%
BINGO!
To some, the elusive % symbol is a mystery.
Don't try to explain that concept to a liberal or Joe Six-Pack.
I think you are trying to say that profit margins should be controlled by the state when the product affects the economy. Well, socialism hasn't been a great success in times past, but who knows, with good old American know how, maybe we can make it work. /sarc.
Exxon's making about 9 percent profit right now, go ahead and reduce that by law and see if you help the economy.
The surest way to tip the eonomy, as you refer to it, is to institute wage and price control. Go for it!
You are eeevil! I say that the capital gains tax should be raised to 110%.
This article tells us very little information. The numbers went up but the cost of oil went up as well. So the real question is what was their return on their investment in percentage terms now compared to the past.
What is the definition of greed? How high is up? What is too much? If my neighbor earns more money than I do, is he overpaid?
I say that everyone earning more than the poverty level should be taxed 100% in order to be fair.
After these type of obscene profits, you will need to change your tagline. Deomcrats will be able to win without phony polls.
You have a better chance of finding Bigfoot, Elvis, or Jimmy Hoffa than you do trying to explain that simple concept to a liberal (and a few on here).
Price of a barrell of oil=$73
Gallons of gas refined from a barrell=42
$73/42=$1.73 per gallon in RM
Taxation at all levels per gallon=$0.50
$1.73+0.50=$2.23
Now, let's add the transportation, refining, distribution and overhead costs......
Not a lot of room for collusion and greedy profiteering when the national average price is $2.91.
nah have faith
They profited about $0.09 per gallon. Dang gougers!
I know. And some here have been around since 1998, and they still don't understand business, free market capitalism, or basic simple economics.
"After these type of obscene profits,..."
9% profits are obscene? What is a fair profit?
Do tha Hokey Pokey and that's whad itsall about. Making money. Ya HOO for Exxon !! Ya Hoo for the IRS who collected taxes at the pump from EXXoN and again on their income... Exxon looks like a cash cow to me.
"10% of 800 billion is still alot of damn money."
Do you have any idea how much money they pump into research and development, exploration and general overhead? A heck of a lot more than 10% of 800 billion. At this scale, you can only deal in percentages, and EXXON-Mobile is doing just moderately well. If the feds go after them because of mob hysteria exhibited by the likes of you, they will be doing poor.
"Exxon looks like a cash cow to me."
Given the hysteria that even Republicans (not conservatives) are even giving way to, I wouldn't touch them with a ten foot pole. The government schools are showing real success with this issue.
I would have faith if I were seeing more efforts on the part of Republicans to get the message out as to who is the real force behind high gasoline prices. World demand, and geopolitics aside, the environmental wing of the demorat party is one of the main perps in our dependence on foreign terrorists oil.
Mob hysteria is a good description--certainly no business sense, logic, or common sense on the part of the 'populist' outrage.
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