Exxon has record profit again on soaring oil prices

[Niels Bohr 72]

Thu Jul 31, 2008 10:29am EDT NEW YORK (Reuters) - Exxon Mobil Corp said on Thursday soaring oil prices pushed its second-quarter earnings up 14 percent, again breaking its own record for the highest-ever profit by a U.S. company.

Net income in the quarter rose to $11.68 billion, or $2.22 a share, from $10.26 billion, or $1.83 a share, last year.

Exxon -- the world's largest publicly traded company -- previously set the high-water mark for quarterly earnings in the fourth quarter of last year, when it brought in $11.66 billion.

Despite the new record, Exxon's results lagged behind analyst expectations.

The company posted operating earnings of $2.27 a share in the quarter, which exclude a $290 million charge related to the recent Supreme Court ruling in the Exxon Valdez case. Analysts, on average, had expected the company to earn $2.53 a share, according to Reuters Estimates.

Revenue in the quarter rose about 40 percent to $138.07 billion.

Exxon both produces oil and refines it to make gasoline, and profit margins for gasoline were weak during the quarter, holding back earnings slightly.

The company said earnings from its exploration and production business rose about 68 percent to $10.01 billion. But its refining and marketing earnings fell about 54 percent to $1.56 billion.

U.S. oil prices averaged slightly less than $125 a barrel in the quarter, nearly double prices from a year earlier. Gasoline prices only rose 25 percent during that same period, resulting in weak profit margins for the fuel.

Shares of Exxon Mobil fell 2.2 percent in pre-market trade after its earnings were announced. Through Wednesday's close, they were down about 10 percent this year, underperforming the Chicago Board Options Exchange's oil index, which has fallen about 5.2 percent over the same period.

(Reporting by Michael Erman, editing by Dave Zimmerman)

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[Ilya R. 0]

out of 11 billion in profits how much is going in to alternative fuel research?

Hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

[Niels Bohr 72]

out of 11 billion in profits how much is going in to alternative fuel research?

Hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

Good one. ROFL!!!

[Ilya R. 0]

These guys make so much soon they'll own the American Government!!!!

Oh wait......

[*JG* 2]

This news story made me so mad this morning.

[ready4ONE 5,400]

Like its competitors, Exxon Mobil said it took a beating from lower global refining margins. Earnings from refining and marketing fell 54 percent in the quarter to $1.55 billion.

I wish I could have suffered such a 'beating!'

Quote from: http://news.yahoo.com/s/ap/20080731/ap_on_...rns_exxon_mobil

[Ilya R. 0]

And this is after all the corporate write offs. In reality these guys are making twice as much.

[Peikko 1,575]

There is no reason for oil companies to invest in alternative energies. They are private companies, that's how we have decided to run the energy industry. Why we are so shocked that they haven't been running around looking for alternatives beats me.

[peejay 327]

This news story made me so mad this morning.

Gee...imagine that...a publicly traded corporation making a profit in a capitalist society.

But seriously...where was the outrage when oil was $8 a barrel and their profits were in the toilet.

It's a commodity...just like corn, pork bellies, orange juice, labor, etc. And it's a hot commodity right now. Oil has always been a finite endowment. It's not renewable. And the American public is burning it at breakneck speed and in huge quantities.

We have met the enemy and he is us.

[Ilya R. 0]

I dont think we should compare Natural Resources like Oil and Gas, to tomatoes. And to be honest I dont think I remember oil company's profits in the Toilet(in 90's they were earning 5 billion, now almost twelve). I dont think its fair, when country like USA that depends on OIL so much has no laws to protect its economy.

Edited July 31, 2008 by Ilya R.

[Niels Bohr 72]

This is very weird. If oil is used alot in manufacturing, why does China consume less. Most of the stuff we used in TVs, computers, clothes, shoes, etc... are from China. And, they still use less oil than us. This proves that the US is still way behind on conservation.

[Ilya R. 0]

This is very weird. If oil is used alot in manufacturing, why does China consume less. Most of the stuff we used in TVs, computers, clothes, shoes, etc... are from China. And, they still use less oil than us. This proves that the US is still way behind on conservation.

But they use more coal.

[peejay 327]

I dont think we should compare Natural Resources like Oil and Gas, to tomatoes. And to be honest I dont think I remember oil company's profits in the Toilet(in 90's they were earning 5 billion, now almost twelve). I dont think its fair, when country like USA that depends on OIL so much has no laws to protect its economy.

You can pass all the meaningless laws and grandiose resolutions you want to, but we still import 70% of our needs. Import means that it comes from another country outside of our jurisdiction. Often from foreign countries that are hostile to the USA.

The USA tried punishing US oil companies with a windfall profits tax in the past and, as expected, the oil companies had no profit incentive to go out looking for more reserves. Do you think they are in business just for the entertainment value?

The only logical way to drive down prices is to lower consumption. The American public is unwilling to do so and is suffering the consequences.

[Heracles 417]

Exxon Mobil is not stealing the oil. People are buying their fuel.

The OPEC nations are the ones making billions of dollars off the oil.

[Heracles 417]

The only logical way to drive down prices is to lower consumption. The American public is unwilling to do so and is suffering the consequences.

Exactly. Through the use of range of alternative technologies.

There also needs to be a huge investment in modern, electrified, high speed mass transit systems.