Thread: Exxon Mobiles profits

Oil Prices Drive Up Exxon Mobil 1Q Profit
By STEVE QUINN, AP Business Writer
2 hours ago

DALLAS - Exxon Mobil Corp., the world's largest oil company, said Thursday that higher oil prices drove first-quarter profit up 7 percent from the prior year.

Net income rose to $8.4 billion, or $1.37 per share, in the January-March period 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 $1.55, or 2.5 percent, to $61.55 in premarket trading.

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.

Its worldwide production of oil equivalent in the first quarter of 2006 rose 5 percent.

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.

In January, Exxon posted the highest quarterly and annual profits of any U.S. company in history: $10.71 billion for the fourth quarter of 2005 and $36.13 billion for the full year.

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.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Do you have some point for this post?

Probably the fact that this corporation is recording RECORD profits while gouging the hell out of the US consumer AND feeding at the trough of government taxbreaks and handouts.

IMHO

Wow, if $3 a gallon is as making people upset I can't wait to read the posts 6 months from now or two or three years for that matter. Hold on folks, this one is not going to end...

Daculling,
When big corporations get record profits and people do not have the income to keep pace with the increase of fuel, of course they are hurting. Does that make you happy? I understand that oil will be going up to $100 this summer. When the oil companies eat up everyone’s discretionary money then it will also hurt retailers and the rest of the economy. Who knows, maybe even the company you work for will have to make cuts.

Originally Posted by jp_48504

Daculling,
When big corporations get record profits and people do not have the income to keep pace with the increase of fuel, of course they are hurting. Does that make you happy?

No it does not. I used to think, "oh when the crap hits the fan it will be so funny to see people lose their minds". But you know what, it's just really depressing and I feel ashamed of the way I looked at it before.

Originally Posted by jp_48504

I understand that oil will be going up to $100 this summer.

Maybe, depends on Iran and where the hurricanes hit this year.

Originally Posted by jp_48504

When the oil companies eat up everyone’s discretionary money then it will also hurt retailers and the rest of the economy. Who knows, maybe even the company you work for will have to make cuts.

That's right shoot the messenger. I understand you don't like my message but also realize that my intentions are to make the situation less painful by spreading the word that this is not just a bunch of fat cats raping you, it's so much more complex than that. To understand it you have to..

1. Stop
2. Take a breath.
3. Look at the situation without casting blame at the easiest target.

I read for nearly 6 hours every day. I understand the complexities of what is going on.

I'm not shooting the messenger, just stating facts. Most people are worried about it. It is a harsh reality of what these oil prices are doing to the average hardworking American who can’t afford being having their wallets stripped in order to get to work.

Originally Posted by jp_48504

It is a harsh reality of what these oil prices are doing to the average hardworking American who can’t afford being having their wallets stripped in order to get to work.

Yes it is harsh. What I am trying to get across is that it's not going to get better, EVER. Your right to say that the oil companies did this. When oil was first produced gasoline was burned off because it was considered explosive and dangerous. It was produced to distill into kerosene for lamps. Well, some enterprising individual gave us automobiles and a reason to buy gas. What happened then? The oil companies bought up the street cars and train lines out of the cities so people had a new reason to buy cars and consume gasoline, after they tore them up. Yes, there was effective public transportation in this country and it was destroyed. What next? Suburbia... package up the American dream based entirely around the automobile and cheap oil. Well, the cheap oil is gone now so what are you going to do? That's a rhetorical question, I don't have the answer.


The concept of peak oil is not relegated to the fringe. Sen Bartlett of Maryland gives regular speaks on the subject, of course the point is lost to the rest of the idiots in the house. Why should they listen anyway, he's just some crazy old dude that advocates enforcing our immigration laws.

All that I ask is that you watch this C-Span video and tell me what you think. It's a bit dated... as you will see because some of what he says has already come to pass.
http://kimaura.com/peakoil/peakoil-128k.wmv

Do you have some point for this post?

I certainly don't begrudge any business person a profit.....I just find this excessive. To me it's just another example of corporate greed. I can pretty much say I'm not as well read as you on this topic. I just see the profits never trickle down, but this raise in price for gas is certainly going to make the price of everything else jump up. No....I don't think the price of gas is going to go down. I just don't know how alot of people are going to be able to survive. I just figured with tax incentives and such big profits they would re-invest in the company to keep prices affordable instead of taking the money and running with it. As I said....I'm no expert and I don't understand big business or the global economy...it's just an average person wondering what's next.

Originally Posted by crazybird

I just see the profits never trickle down.....

...it's just an average person wondering what's next.

They don't trickle down in this case unless your invested in oil or other industries surrounding it. The more appropriate stance though is to see it as inflation. Our entire way of life is based on easy cheap oil. So, in effect those that gain are actually standing still while everyone else has a lower standard of living.

Watch the video. There is a lot of very complex info there so don't feel bad if you have to watch it again and look in other places as well. I've been watching this for a long time and it's like a train wreck in slow motion..