Exxon Mobil sets record with $45.2 billion profit

[one...two...tree 2,762]

HOUSTON – Exxon Mobil Corp. on Friday reported a profit of $45.2 billion for 2008, breaking its own record for a U.S. company, even as its fourth-quarter earnings fell 33 percent from a year ago.

The previous record for annual profit was $40.6 billion, which the world's largest publicly traded oil company set in 2007.

The extraordinary full-year profit wasn't a surprise given crude's triple-digit price for much of 2008, peaking near an unheard of $150 a barrel in July. Since then, however, prices have fallen roughly 70 percent amid a deepening global economic crisis.

In the fourth quarter alone crude tumbled 60 percent, prompting spending and job cuts in an industry that was reporting robust, often record, profits as recently as last summer.

With piles of cash and diversified operations, the majors like Exxon Mobil have fared better than many smaller oil and gas companies, but Friday's results show no one is completely insulated from the ongoing malaise.

Irving, Texas-based Exxon said net income slid sharply to $7.8 billion, or $1.55 a share, in the October-December period. That compared with $11.7 billion, or $2.13 a share, in the same period a year ago, when Exxon set a U.S. record for quarterly profit. It has since topped that mark twice, first in last year's second quarter and then with earnings of $14.83 billion in the third quarter.

Revenue in the most-recent quarter fell 27 percent to $84.7 billion.

Both the per-share and revenue results topped Wall Street forecasts. On average, analysts expected the company to earn $1.45 a share in the latest quarter on revenue of $69.1 billion, according to Thomson Reuters.

Shares rose $1.52, or 2 percent, to $78.52 in early trading.

The nation's second largest oil company, Chevron Corp., reported profits of $4.9 billion for the fourth quarter, though revenues slid 26 percent with oil prices in sharp decline.

It earned $2.44 per share in the three months ended Dec. 31. Like Exxon, Chevron easily beat expectations of analysts, who were looking for profits of $1.81 per share.

The industry went into retrenchment toward the end of the year with demand falling.

As expected, Exxon Mobil's bottom line took a beating from its exploration and production, or upstream, arm, where net income fell 31 percent to $5.6 billion. The culprit: lower crude prices, which the company said decreased earnings by $3.2 billion in the fourth quarter alone.

The company, which produces about 3 percent of the world's oil, said overall output fell 3 percent in the most-recent period, a troubling trend in previous quarters. Exxon, which generates more than two-thirds of its earnings from oil and gas production, said production-sharing contracts and OPEC quotas contributed to its lower output.

Results were better at its refining and marketing unit, where earnings rose 6 percent to $2.4 billion as higher margins overcame costs related to last summer's hurricanes and other factors.

The company's chemical division also took a hit, posting net income of $155 million versus $1.1 billion a year ago. Results were hurt by lower volumes and margins and hurricane-repair costs.

Exxon Mobil said it bought 119 million shares of its common stock in the quarter at a cost of $8.8 billion. Roughly $8 billion of that amount was dedicated to reducing the number of shares outstanding; the balance was used to offset shares issued as part of the company's benefit plans.

Exxon said it spent $26.1 billion on capital and exploration projects last year, up 25 percent from 2007. Its earnings release provided no information about its planned spending for 2009.

For the full year, Exxon Mobil's massive profit amounted to $8.69 a share, versus $7.28 a share a year ago.

http://news.yahoo.com/s/ap/20090130/ap_on_...rns_exxon_mobil

[spookyturtle 9,466]

Not bad in a year with reduced fuel consumption. The economy is fine, why is everyone concerned?

[Waldo 0]

I think taxing fuel is ridiculous. So is taxing any freight or transportation. The end product will just end up being more expensive.

[one...two...tree 2,762]

I think taxing fuel is ridiculous. So is taxing any freight or transportation. The end product will just end up being more expensive.

Waldo, what country are you from originally? I get the impression that aren't from these parts.

[Waldo 0]

I think taxing fuel is ridiculous. So is taxing any freight or transportation. The end product will just end up being more expensive.

Waldo, what country are you from originally? I get the impression that aren't from these parts.

I'm a native... why do you ask?

[peejay 327]

Exxon set record profits while many other oil companies posted losses for the quarter. What is so evil with that? After all, this is a capitalistic country. Jobs don't come out of thin air. Companies that make money and have money create jobs. All the others are cutting jobs. What is the beef here?

Do you think the world runs on paying people to dig holes and then fill them up with dirt again? Make-work projects that create zero profit and are actually bottomless holes to dump money into are no basis for a vibrant economy. Sorry if profits offend some people, but that is what makes the world of business go round.

[Waldo 0]

Exxon set record profits while many other oil companies posted losses for the quarter. What is so evil with that? After all, this is a capitalistic country. Jobs don't come out of thin air. Companies that make money and have money create jobs. All the others are cutting jobs. What is the beef here?

Do you think the world runs on paying people to dig holes and then fill them up with dirt again? Make-work projects that create zero profit and are actually bottomless holes to dump money into are no basis for a vibrant economy. Sorry if profits offend some people, but that is what makes the world of business go round.

I think that MR F did right in this article. It wasn't targeting the actual industry so much as the sarcastic point of "If we succeed and everyone else fails.... we still succeed"

[one...two...tree 2,762]

I think taxing fuel is ridiculous. So is taxing any freight or transportation. The end product will just end up being more expensive.

Waldo, what country are you from originally? I get the impression that aren't from these parts.

I'm a native... why do you ask?

Ah, ok. I don't know...just had the impression that you were a naturalized citizen.

[Waldo 0]

I think taxing fuel is ridiculous. So is taxing any freight or transportation. The end product will just end up being more expensive.

Waldo, what country are you from originally? I get the impression that aren't from these parts.

I'm a native... why do you ask?

Ah, ok. I don't know...just had the impression that you were a naturalized citizen.

I probably belong down in Peru with my wife but they think I'm weird too!

[one...two...tree 2,762]

I think taxing fuel is ridiculous. So is taxing any freight or transportation. The end product will just end up being more expensive.

Waldo, what country are you from originally? I get the impression that aren't from these parts.

I'm a native... why do you ask?

Ah, ok. I don't know...just had the impression that you were a naturalized citizen.

I probably belong down in Peru with my wife but they think I'm weird too!

If you don't mind me asking, where did you grow up (state, region), and did you attend public schools all your life?

[Waldo 0]

I was born in Spokane Washington, lived here all my life. I was raised as an only child however I do have siblings. I attended all public schools. I was a welfare child.

[Jasman0717 9]

Life is good with the oil fat cats

[spookyturtle 9,466]

Life is good with the oil fat cats

They all suck. It's legal robbery.