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.
WE HAVE A WINNER!!!!!!!
While the media continues to blame the big oil companies for gouging U.S. motorists as they collect record breaking profits, the windfall profits raked in by the government in the form of energy tax revenue actually dwarf the oil companies' jackpot.
The press sounded the alarm last year when the largest U.S. oil company, Exxon Mobil Corp, announced profits of $36 billion. But according to the Tax Foundation, the biggest price gouging profiteer was the U.S. government, cashing in to the tune of $54 billion in oil and gas taxes.
"Tax collections on the production and import of gasoline by state and federal governments are already near historic highs," the think tank says. "In fact, in recent decades governments have collected far more revenue from gasoline taxes than the largest U.S. oil companies have collectively earned in domestic profits."
Since 1977, federal and state governments have collected more than $1.34 trillion in gasoline tax revenues in inflation adjusted dollars. That's "more than twice the amount of domestic profits earned by major U.S. oil companies during the same period," the Tax Foundation says.
Still, despite government tax gouging on oil industry revenue, Democrats like Sen. Charles Schumer want to raise energy taxes even more - complaining that oil company profiteering is simply just unconscionable.
Great! I have owned Exxon stock since 1980. More! More! More! I want another split. Higher dividends!
I guess they should be declaring war against Bank of America and their 31% profit margin. And Yahoo's 36%...and Microsoft's 32%..and Oracle's 23%.............
That is so true so if the oil companies simply break even and accept no profit then gas goes down 9 cents a gallon. wow! Big deal. Just so much demagoguery on this issue.
As that guy on Rush pointed out the other day, liberals are OK with huge profits only when the persons making them are not providing a service essential to society. Entertainers are not begrudged their millions, while businessmen are villified for theirs, if they are so lucky or skilled as to have made them.
Isn't the tax on gas a fixed amount? If so, the Gubment take on a gallon of gas is less percentage-wise as the price goes up - and if so where were the whiners when gas was 99 cents per gallon?
On the other hand, who can't remember oil tankers off the US coast during the oil crunch years ago and full tankers destined for the US sitting off the coast waiting for the price to skyrocket? Kinda makes ya think.
(1) subsidize McDonald's to advertise in other countries; and
(2) subsidize Corporation for Public Broadcasting to run such shows as "Sesame Street", "Barney", etc. while these shows sell more toys, books, sheets, clothing, videos, etc. and make millions off American Taxpayers.
Most people [especially D's] don't get it and will insist they get some of Exxon's profit.....all they hear is the Billion dollar quote and MSM plays that up banking on their ignorance!
$88.98/8.4=9.44%
Nothing to see here, move along.
Don't forget that the government also takes about 1/3 of their "profit" in the form of corporate taxes.
Remember in this country when we used to cheer for our own USA companies to do well. Ah, those were good times....then liberalism got involved.
So what?
You know what all you "Yay for big oil to make tons of money while hard working Americans struggle to get gas to get to work" folks... You can have profit margins vs profit classes all day, it still don't change the fact that 32 BILLION a year annually is still ALOT OF MONEY. $50 extra in gas a month can break a single income family, while one individual gets $150k a day, plus $400 million in retirement.
I'm sorry, I don't like greed. You can argue political difference with me all day, I just don't like greed.
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.