Exxon Mobil posts $10.49B profit in 3Q

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

By STEVE QUINN, AP Business Writer

Oil industry behemoth Exxon Mobil's earnings rose to $10.49 billion in the third quarter, the second-largest quarterly profit ever recorded by a publicly traded U.S. company. Its shares briefly rose to a 52-week high.

The report Thursday comes as high crude prices this year have fueled record profits in the oil industry, triggering an outcry from consumers who were being asked to pay about $3 a gallon for gasoline in early August.

The largest quarterly profit ever was Exxon Mobil Corp.'s $10.71 billion profit in the fourth quarter of 2005.

The company may beat that next quarter, said Howard Silverblatt Standard & Poor's Senior Index Analyst. "Then in all likelihood they will be at that $40 billion mark for the year."

That would put the company on track for the highest annual profit ever by a U.S. company. Exxon Mobil holds that record with a 2005 profit of $36.1 billion.

Although crude oil prices began to decline toward the end of the third quarter, the average market price for crude held at around $70 a barrel in the period after peaking above $78 per barrel in July. Oil futures prices have recently traded near $61 a barrel, and gasoline prices have dropped to an average of about $2.43 a gallon.

Exxon Mobil, the world's biggest publicly traded oil company, said its net income amounted to $1.77 per share for the July-September period, up from $9.92 billion, or $1.58 per share, a year ago.

The results surpassed the expectations of Wall Street analysts. On average, analysts expected the company to earn $1.59 per share in the quarter.

Exxon Mobil shares rose 46 cents to $71.47 in morning trading on the New York Stock Exchange after rising to a new 52-week high of $72.33 earlier in the session.

Revenue fell to $99.59 billion from $100.72 billion from a year ago, which saw then-record oil prices because of hurricanes Katrina and Rita.

Still, Exxon's revenue for the three-month period was greater than the annual gross domestic product of some major oil producing nations, including the United Arab Emirates ($98.1 billion) and Kuwait ($52.76 billion), according to statistics maintained by the Central Intelligence Agency.

More than two-thirds of Exxon Mobil's profits come from oil and natural-gas production outside the U.S., with rising production in Africa, the Middle East and Russia consistently offsetting declining output in the United States, Canada and Europe.

Exxon Mobil said it pumped 7 percent more oil and natural gas than it did during the same quarter a year earlier. At the beginning of the year, some analysts had forecast a 5 percent growth.

Another major international oil company, Royal Dutch Shell PLC said its third-quarter profit fell 34 percent to $5.94 billion even as revenues rose 10 percent to $84.3 billion. But the Anglo-Dutch company's operating profit rose as higher oil prices outweighed worsening refining margins.

Earlier this week, ConocoPhillips reported its profit rose 2 percent to $3.88 billion in the third quarter while another major oil company, BP PLC, said its earnings fell 3.6 percent to $6.23 billion.

A fifth major oil company, Chevron Corp., is expected to report its results Friday.

High oil prices helped Irving, Texas-based Exxon Mobil realize earnings from its oil and gas drilling activities of $6.49 billion, up 13 percent from the prior year. The company also saw stronger earnings from its refining operations and gas stations, and profits at its chemicals segment more than doubled.

The company said its average sale price for crude oil in the U.S. during the quarter was $62.07 a barrel, compared to $56.97 a year earlier. Internationally, however, Exxon said the average sale price for oil was $65.64 compared to $58.24 a year ago. Natural gas sales in the U.S. were slightly lower in the U.S. but higher around the world.

___

AP Business Writer Lauren Villagran in New York contributed to this report.

[almaty 19]

God bless America and congress....for giving the necessary tax cuts to keep the $$$ rolling in

[Jasman0717 9]

God bless America and congress....for giving the necessary tax cuts to keep the $$$ rolling in

[I'm Gone 60]

Yeah, so? What are they supposed to give gasoline away? How much tax will they pay on income?

[peejay 327]

More than two-thirds of Exxon Mobil's profits come from oil and natural-gas production outside the U.S., with rising production in Africa, the Middle East and Russia consistently offsetting declining output in the United States, Canada and Europe.

Exxon Mobil said it pumped 7 percent more oil and natural gas than it did during the same quarter a year earlier. At the beginning of the year, some analysts had forecast a 5 percent growth.

I would think the stats above should wake up America to the rough road we have ahead. If anyone doesn't think this dangerous fact influences American foreign policy...they are delusional. We do not have control of our own national destiny and that is very dangerous.

The 7% increase in production does not equate to more oil to be found in the world. World Peak Oil looms on the horizon if it isn't already here. The sad fact is that we won't realize it is here except in retrospect. This will have profound negative implications for the USA and its increasing hunger for oil at a time when world demand is increasing. There will be more people trying to eat a smaller and smaller pie.

[AnaAndDaniel 0]

poor oil companies... i mean with all these regulations and taxes and enviromental concerns, and high wages they have to pay!!!

Daniel

:energetic:

[almaty 19]

poor oil companies... i mean with all these regulations and taxes and enviromental concerns, and high wages they have to pay!!!

Daniel

:energetic:

i agree daniel-san..they have the $$$ to spin the darkest picture of themselves..but facts are facts...

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

Yeah, so? What are they supposed to give gasoline away? How much tax will they pay on income?

At a town hall meeting in Ohio last Saturday, Representative Sherrod Brown of Ohio, a staunch advocate for social and economic rights--he and Bernie Sanders are the two best candidates running for Senate in 2006--railed against stagnant wages' contribution to economic hardship. "It is unacceptable that someone can work full-time--and work hard--and not be able to lift their family out of poverty." He blasted a system where a full-time worker making the minimum wage earns $10,500 annually, while "last year the CEO of Wal-Mart earned $3,500 an hour. The CEO of Halliburton earned about $8,300 an hour. And the CEO of ExxonMobil earned about $13,700 an hour."

http://www.thenation.com/blogs/edcut?pid=75273

If you can bilk Joe American at the pump and keep his wage low, why not?

[Carol&Marc 0]

Jealousy and envy! gotta love it.

[I'm Gone 60]

Yeah, so? What are they supposed to give gasoline away? How much tax will they pay on income?

At a town hall meeting in Ohio last Saturday, Representative Sherrod Brown of Ohio, a staunch advocate for social and economic rights--he and Bernie Sanders are the two best candidates running for Senate in 2006--railed against stagnant wages' contribution to economic hardship. "It is unacceptable that someone can work full-time--and work hard--and not be able to lift their family out of poverty." He blasted a system where a full-time worker making the minimum wage earns $10,500 annually, while "last year the CEO of Wal-Mart earned $3,500 an hour. The CEO of Halliburton earned about $8,300 an hour. And the CEO of ExxonMobil earned about $13,700 an hour."

http://www.thenation.com/blogs/edcut?pid=75273

If you can bilk Joe American at the pump and keep his wage low, why not?

Yeah Bernie Sanders the Socialist, I'm sure I want him running things.

[Fandango 1,440]

Oh to live in a world where success is begrudged...

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

Yeah, so? What are they supposed to give gasoline away? How much tax will they pay on income?

At a town hall meeting in Ohio last Saturday, Representative Sherrod Brown of Ohio, a staunch advocate for social and economic rights--he and Bernie Sanders are the two best candidates running for Senate in 2006--railed against stagnant wages' contribution to economic hardship. "It is unacceptable that someone can work full-time--and work hard--and not be able to lift their family out of poverty." He blasted a system where a full-time worker making the minimum wage earns $10,500 annually, while "last year the CEO of Wal-Mart earned $3,500 an hour. The CEO of Halliburton earned about $8,300 an hour. And the CEO of ExxonMobil earned about $13,700 an hour."

http://www.thenation.com/blogs/edcut?pid=75273

If you can bilk Joe American at the pump and keep his wage low, why not?

Yeah Bernie Sanders the Socialist, I'm sure I want him running things.

You're right - it's better to let CEO's hord all the profits. They worked hard and deserve all the hording they can do.

[Carol&Marc 0]

Yeah, so? What are they supposed to give gasoline away? How much tax will they pay on income?

At a town hall meeting in Ohio last Saturday, Representative Sherrod Brown of Ohio, a staunch advocate for social and economic rights--he and Bernie Sanders are the two best candidates running for Senate in 2006--railed against stagnant wages' contribution to economic hardship. "It is unacceptable that someone can work full-time--and work hard--and not be able to lift their family out of poverty." He blasted a system where a full-time worker making the minimum wage earns $10,500 annually, while "last year the CEO of Wal-Mart earned $3,500 an hour. The CEO of Halliburton earned about $8,300 an hour. And the CEO of ExxonMobil earned about $13,700 an hour."

http://www.thenation.com/blogs/edcut?pid=75273

If you can bilk Joe American at the pump and keep his wage low, why not?

Yeah Bernie Sanders the Socialist, I'm sure I want him running things.

You're right - it's better to let CEO's hord all the profits. They worked hard and deserve all the hording they can do.

Steve I think you need a little PROFIT in your life.

[Heracles 417]

No one seems to have a problem with the billions of $$$$ oil exporting nations are making... Has anyone been to Saudi Arabia or Dubai. They make Exxon, dollar wise, look like an intern...

What happens once the proposed SHELL / BP merger goes through? Exxon's profit will look like loose change..

PS Isn't it OPEC who controls production therefore the price of oil. Did we or did we not see the price of oil increase due to them cutting production the other day?

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

Yeah, so? What are they supposed to give gasoline away? How much tax will they pay on income?

At a town hall meeting in Ohio last Saturday, Representative Sherrod Brown of Ohio, a staunch advocate for social and economic rights--he and Bernie Sanders are the two best candidates running for Senate in 2006--railed against stagnant wages' contribution to economic hardship. "It is unacceptable that someone can work full-time--and work hard--and not be able to lift their family out of poverty." He blasted a system where a full-time worker making the minimum wage earns $10,500 annually, while "last year the CEO of Wal-Mart earned $3,500 an hour. The CEO of Halliburton earned about $8,300 an hour. And the CEO of ExxonMobil earned about $13,700 an hour."

http://www.thenation.com/blogs/edcut?pid=75273

If you can bilk Joe American at the pump and keep his wage low, why not?

Yeah Bernie Sanders the Socialist, I'm sure I want him running things.

You're right - it's better to let CEO's hord all the profits. They worked hard and deserve all the hording they can do.

Steve I think you need a little PROFIT in your life.

I've got plenty, Marc, but thank you. How about you and I pull for our brothers and sisters out there working hard that aren't getting paid what they are worth? How about we make the American Dream real for every American? Let's share the pie. There's enough for everyone, right?