Lifted this off CNNmoney.com
Is it just me or is there something obscene about a profit like this?
Oil giant makes corporate history by booking $11.7 billion in quarterly profit; earns $1,300 a second in 2007.
By David Ellis, CNNMoney.com staff writer
February 1 2008: 2:26 PM EST
Exxon Mobil booked the biggest quarterly and annual profits in U.S. corporate history Friday, helped by higher oil prices.
NEW YORK (CNNMoney.com) -- Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company, boosted in large part by soaring crude prices.
Exxon, the world's largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share. The company earned $10.25 billion, or $1.76 per share, in the year-ago period.
The profit topped Exxon's previous quarterly record of $10.7 billion, set in the fourth quarter of 2005, which also was an all-time high for a U.S. corporation.
"Exxon can put out some amazing numbers and this is one of those cases," said Jason Gammel, senior analyst at Macquarie Securities in New York.
Exxon also set an annual profit record by earning $40.61 billion last year - or nearly $1,300 per second in 2007. That exceeded its previous record of $39.5 billion in 2006.
In the fourth quarter, the company said revenue rose 29.5% from a year ago to $116.64 billion.
Analysts were looking for the company to report quarterly profit of $10.36 billion on revenue of $114.9 billion, according to earnings tracker Thomson Financial.
Despite topping Wall Street's estimates, Exxon (XOM, Fortune 500) shares slipped in afternoon trading.
The company reported strong results in its worldwide exploration and production, or "upstream," business. Profit rose 32% to $8.2 billion during the quarter, offsetting some weakness earlier in the year.
Income in Exxon's refining, or "downstream," business rose 15.7% during the quarter to $2.27 billion.
Exxon attributed its impressive results to strong performance across its divisions, but a large part of the profit surge was underpinned by climbing oil prices.
Crude prices skyrocketed nearly 60% last year. The surge helped prices break through the $100 a barrel mark for the first time ever early last month. Since crossing that milestone, prices have eased to around $90 a barrel.
Natural gas prices also jumped last year, albeit marginally. But costs have also increased for the oil companies, which is why profits haven't risen as rapidly as crude prices.
Big oil companies that both pump oil and refine crude into gasoline have to spend more for crude but are unable to pass on all the extra cost to consumers, which eats in to gasoline profit margins.
The average price for a gallon of regular gasoline hit an all-time high of $3.23 in May, according to the motorist organization AAA. The high prices were blamed on strong demand and a series of accidents that shut down refineries in the U.S. But slack demand for gasoline in the latter half of last year kept gas prices from rising as dramatically as crude prices.
Exxon's record results, which coincide with smaller rival Chevron's (CVX, Fortune 500) profit jump, drew some fire from both government officials and consumer rights groups, who have argued previously that the the oil industry is deliberately restricting supply and profiting on the back of U.S. motorists.
Sen. Charles Schumer, D-N.Y. took a swipe at the two firms, calling on fellow lawmakers to break the country's dependence on foreign oil and rollback unnecessary tax incentives for oil companies.
Judy Dugan, research director of The Foundation for Taxpayer and Consumer Rights, urged Congress to initiate some oversight into unregulated energy trading markets, which have been accused of helping to drive up the price of oil.
"Exxon is happy to take advantage of these prices," said Dugan.
But finding oil has also become more costly. The oil boom has led to a surge in exploration and drilling activity, which has pushed up the price for skilled workers and equipment.
Furthermore, new supplies of oil are increasingly difficult to find and generally tend to be located in harder to reach - and hence more expensive - places. The new natural gas field discovered this week by Brazil's Petrobras lies three miles under the ocean.
ExxonMobil representatives also stressed the cyclical nature of the business and noted that growing global demand for energy will require companies to heavily invest in future growth. The company said it estimates that global demand will grow by 30 percent by 2030.
"The challenge for all of us in the industry is how to we meet that increased demand," said Henry Hubble, vice president of investor relations.
Exxon and Chevron aren't the only two oil giants to report impressive earnings recently. Conoco (COP, Fortune 500), the nation's third-largest oil company, trounced profit estimates by nearly 25% when it reported last week. And Royal Dutch Shell PLC, Europe's largest oil company, reported a 60% increase in profits Thursday.
-CNNMoney.com staff writer Steve Hargreaves contributed to this report
- Board index Personal Forums Wall Street to Main Street
- Search
-
- It is currently Wed Jun 05, 2024 7:01 am
- All times are UTC-07:00
End Of Oil Just A Video Game
Big Business, Small Business, Investments, and Personal Finances
- jones jones
- Posts: 6601
- Joined: Sat Jan 26, 2008 7:30 am
End Of Oil Just A Video Game
Post by jones jones »
"…I hate how I don’t feel real enough unless people are watching." — Chuck Palahniuk, Invisible Monsters
Return to “Wall Street to Main Street”
Jump to
- Official Forumgarden Area
- ↳ News and Announcements
- ↳ Request A New Forum Here
- ↳ Problems, Solutions Feedback
- ↳ Threads containing hotlinks
- ↳ Test Forum
- Relaxing in the Garden
- ↳ Introductions
- ↳ Member Map Link
- ↳ Photos
- ↳ Member Map Discussion
- ↳ Members' News
- ↳ ForumGarden Hotel
- ↳ General Chit Chat
- ↳ Friends, Relationships, Advice
- ↳ Mental Health
- ↳ Travel Vacation
- ↳ FG Game Shows
- ↳ The Dating Game
- ↳ Commentary
- ↳ FG's Got Talent!
- ↳ Mystery Gardener!
- ↳ Weather Station
- ↳ Welcome To My Day!
- ↳ Pub Nutters Inn
- ↳ The Coffee Shop
- ↳ Holidays
- ↳ Just For The Fun Of It
- ↳ Arcade Discussions
- ↳ Word Games
- ↳ This Deserves A Caption
- ↳ Links to the Fascinating
- ↳ Explain Your Avatar!
- ↳ Did You Know?
- ↳ Show Us Your Computer Station
- ↳ Skewed News Humor
- TV Movie Chatter
- ↳ General TV Shows
- ↳ Soap Operas
- ↳ Films Cinema Forum
- Music Forums
- ↳ General Music
- ↳ New Releases
- ↳ Song Lyrics
- ↳ Favorite Music Videos
- My Favorite Videos
- ↳ Arts Animation
- ↳ Autos Vehicles
- ↳ Comedy
- ↳ Music
- ↳ People
- ↳ Pets Animals
- ↳ Science Technology Videos
- ↳ Sports
- ↳ Travel Places
- ↳ Video Games
- Personal Forums
- ↳ Fitness Nutrition
- ↳ Wall Street to Main Street
- ↳ Health Wellness
- ↳ Diabetes
- ↳ Men's Health
- ↳ Women's Health
- ↳ Healthcare
- ↳ Work Employment
- ↳ Fashion Clothing
- ↳ Home Management
- ↳ Kids Family
- ↳ Physically Challenged
- Support and Counseling
- ↳ Recovery Forum
- ↳ Bereaved People
- ↳ Bereaved Parents
- General Forums
- ↳ Current Events
- ↳ History
- ↳ Bizarre News Stories
- ↳ Conspiracy Theories
- ↳ Conservation The Environment
- ↳ Polls, Polls, and more Polls
- ↳ Philosophy
- ↳ Wide World of Sports
- ↳ Societal Issues News
- Crimes, Trials, Justice
- ↳ Crimes Trials
- ↳ Missing Children
- ↳ Missing Adults
- ↳ Amber Alert Forum
- Shop 'Til You Drop
- ↳ Hot Deals Freebies
- Dogs, Cats, All Things Pet Related
- ↳ The Pets In Our Lives
- ↳ Pet Advice Support
- ↳ Choosing a Pet
- ↳ Training Your Pet
- ↳ Pet Behavior
- ↳ Your Pet's Diet
- Farming
- ↳ Pastoral
- ↳ Hydroponic
- ↳ Arable
- Autos, Motorcycles, Anything With Wheels
- ↳ Cycling and Cyclists
- ↳ Biker Forum
- ↳ General Chit Chat
- ↳ Auto Racing
- Radio Forums
- ↳ General Radio
- ↳ Amateur Radio
- ↳ Shortwave Listening
- ↳ Collecting and Refurbishing
- ↳ Radio Tech: HD Radio, Satellite, SDR, Packet
- Politics
- ↳ Current Political Events
- ↳ Immigration
- ↳ Abortion
- ↳ Gun Control
- ↳ Drugs, Alcohol Tobacco
- ↳ Health Care
- ↳ Warfare Military
- ↳ Presidential Elections Campaigns
- ↳ Social Human Rights
- ↳ International Politics
- ↳ Political Humor Satire
- Arts Entertainment
- ↳ The Time Capsule
- ↳ Time Capsule Photo Gallery
- ↳ The Nifty 1950's
- ↳ The Psychedelic 1960's
- ↳ The Super 70's
- ↳ The Awesome 80's
- ↳ The 1990's.
- ↳ Our Current Decade
- ↳ The Television Forum
- ↳ The Library
- ↳ Talk About Comedy
- ↳ The Gaming Zone - PC Console
- ↳ Flash Games
- ↳ Web Design Art Forum
- ↳ Poetry Writing Forum
- Religions Beliefs
- ↳ General Religious Discussions
- ↳ Christianity
- ↳ Modern Ancient Paths
- ↳ Body, Mind, Soul
- ↳ Magic Mystery
- ↳ Ancient Wisdom
- ↳ Islam
- ↳ Judaism
- ↳ Eastern Religions
- ↳ Godlessness
- ↳ Prophecies and Prophets
- Science Technology
- ↳ Science
- ↳ Paranormal Science
- ↳ Space and Astronomy
- ↳ Earth Changes
- ↳ The Internet
- ↳ Computers Internet
- ↳ Electronic Gadgets Galore
- ↳ Home and Car Audio
- Hobbies - Special Interest Forums
- ↳ The Outdoors
- ↳ Gardening Forum
- ↳ Garden Galleries
- ↳ Photography More
- ↳ Geo Photo Blogging
- ↳ Needlecrafts
- ↳ The Kitchen
- ↳ Arts Crafts
- Senior Forums
- ↳ Retirement Planning
- ↳ Retirement Activities
- ↳ Health and Drug Concerns
- ↳ Senior Share
- Regional
- ↳ United States
- ↳ New England / Mid Atlantic
- ↳ South East
- ↳ Mid West
- ↳ Mountain West
- ↳ South West
- ↳ Pacific West
- ↳ Australia
- ↳ Canada
- ↳ United Kingdom
- ↳ England
- ↳ Scotland
- ↳ Wales
- ↳ Northern Ireland
- ↳ Ireland
- ↳ Other Regions
- Westcliff Rules Debating Area
- ↳ Watch
- ↳ Discuss
- ↳ Propose
- ForumGarden Blogs
- ↳ Recent Blog Postings