EXXON Quarterly Profit 5th Highest Ever (3-MONTH PROFIT: $8,400,000,000.00)

AP ^ | Apr 27 06 | STEVE QUINN

[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.

[stockstrader]

Your logic is absolutely incredible!

The government makes 50 cents/gallon and the oil companies make 15 cents/gallon---and you blame the oil companies, not the govt who is doing the REAL GOUGING?

Amazing, absolutely amazing.

[sandbar]

>>>I'm sorry, I don't like greed. You can argue political difference with me all day, I just don't like greed.

Please explain the difference between "greed" and "capitalism".>>>

Greed is word that can vary based on opinion. Capitalism is a system of finance. Would you like a dictionary?

[liberty2004]

The old government also gets the taxes from from BIG OIL.

I wish Exxon would blanket the airways and billboards with the amount of taxes paid by consumers. These companies need to go on the offensive against government. But alas, they can't because the government lawyers would be all over Exxon etc, for just "telling the truth." I absolutely despise the government's rape of our wealth. The Reps in Congress are below pond scum for their anti-capitalist stance. Damn them all.

[rwfromkansas]

I officially retract what I just said.

A 10 percent profit margin is all?

I have no beef with Exxon. It may be record profits, but the profit margin is so small nobody can say it is unfair.

I support the oil companies on this.

Hopefully, they will get people out to tell the media about the profit margin issue though or the general public will scream bloody murder like I did in my first post.

[Realism]

The ONLY reason that gas is as CHEAP as it is,,,yes, CHEAP,,,is BECAUSE of the oil companies...Geeez

Whoa... Almost fell out of my chair.

[sandbar]

>>>I have no beef with Exxon. It may be record profits, but the profit margin is so small nobody can say it is unfair. >>>

10% of 800 billion is still alot of damn money.

[MortMan]

Did I miss the discussion of Exxon's profit margin percentages, or am I detecting inflammatory omission syndrome in the article?

[stockstrader]

So the oil companies are being 'greedy' when they have a profit margin of 8% while the average US company has a profit margin in excess of 10%? What about the 15% profit margin in healthcare companies? Are they even GREEDIER? What about the 20% profit margin in drug companies? Are they even MORE GREEDY?

Greedy? Give me a break--compared to the average US company, oil company profits are pathetic, not greedy!

[stockstrader]

Yes, CHEAP. Is ethanol cheaper than gasoline per gallon? Just name one liquid that is cheaper per gallon, ok?

If your car could run on 100% ethanol, you would be paying 50 cents/gallon more!! LOOK IT UP.

Yes, gas is CHEAP.

Just name one, ok?

[You Dirty Rats]

Something else you won't learn from the media but can read about here:

http://home.businesswire.com/portal/site/exxonmobil/index.jsp?epi-content=GENERIC&newsId=20060427005574&ndmHsc=v2*A1072962000000*B1146168248000*C4102491599000*DgroupByDate*J2*N1001106&newsLang=en&beanID=2030803304&viewID=news_view

Of the 8.400 BILLION in profit, the Company earned $5.695 BILLION outside the United States!! In other words, about 68% of their profit was NOT earned in this country at all!!

So Exxon Mobil made about $5.7 Billion from outside the United States for their investors. So it looks like the Congressional idiots want to tax profit made in other countries!!

Memo to Congress, the Media and other Ignorant people out there: READ THE FREAKING REPORTS before making fools of yourselves!!

[liberty2004]

Greedy? Give me a break--compared to the average US company, oil company profits are pathetic, not greedy!

good points, however, when trying to reason with those consumed by ENVY, all the logic and facts will make little difference. Government is the biggest agent of theft the world has ever seen. Governments worldwide squander more wealth in one day than most companies will make in a 1000 years.

[stockstrader]

Exactly. XOM paid $23 billion in the corporate tax last year--but that never makes the headlines. How about headline showing how much in corporate taxes (in addition to the 50 cents/gallon at the pump) the govt gets?

[Rakkasan1]

but it's for the children...

[stockstrader]

Many on here just can't seem to understand basic economics and common sense. They are blinded by what they think is a NATIONAL BIRTHRIGHT TO CHEAP GAS.

Never mind the fact that we import 60% of our oil (and that percentage GROWS every year). Any country that imports 60% of its oil, has no right to complain about the price of gas. No right at all.

[HawaiianGecko]

I am sorry, but record profits, while capitalism at its best and evidence of a strong free market, are also capitalism at its worst in this case.
 

"Record Profits" is really a misnomer. If Exxon and Mobil were still two distinctly different companies you would have two companies making $18B in profits each, NOT anywhere near a record, and we'd be paying a bit more for gasoline because of duplication of effort in both companies.  However, there wouldn't be any screaming about price gouging.

If Starbucks were to purchase the next three largest oil companies, they would set a record for profits. Big deal! There isn't a businessman on the planet that would use the actual bottom line number on a P&L as a measure of the success of a company. I'd much prefer to invest my money in a company earning 20% than 9%.

[tiger63]

Believe thats 8.4/88.98=9.44%

[stockstrader]

Exactly. It's absolutely incredible that so many on here do not understand a concept that simple.

It's just amazing.

[Rakkasan1]

want to see some more amazing "conservative" thought?

Death Tax Scam: 18 Families Behind Multimillion-Dollar Deceptive Lobbying Campaign

http://www.freerepublic.com/focus/f-news/1621914/posts

The death tax is the one way to grab that person's portion of the national debt due upon their death IMO. 30 posted on 04/26/2006 12:43:52 PM CDT by A CA Guy

[stockstrader]

I used to think that this was a conservative site--with common sense, logic and informed reason prevailing well above sites like DU. But you would never know it by what some post on here...lol

[sandbar]

>>>So the oil companies are being 'greedy' when they have a profit margin of 8% while the average US company has a profit margin in excess of 10%? What about the 15% profit margin in healthcare companies? Are they even GREEDIER? What about the 20% profit margin in drug companies? Are they even MORE GREEDY?
Greedy? Give me a break--compared to the average US company, oil company profits are pathetic, not greedy!>>>

8%, more like 10%. And 10% of 800 billion adds up to a whole lot more than 10% of 1 million.

But I can't seem to get that through most Freepers heads. OH well.