Thread: Chevron Profits Increase 49%

http://www.kentucky.com/mld/kentucky/14458174.htm
Saturday, Apr 29

Chevron profits increase 49%
Together, 3 big oil firms gain $15 billion
By Michael Liedtke
ASSOCIATED PRESS

SAN RAMON, Calif. - Chevron Corp.'s first-quarter profit soared 49 percent to $4 billion, joining the procession of U.S. oil companies to report colossal earnings as lawmakers consider ways to pacify motorists agitated about rising gas prices.

Chevron released its results yesterday after two of its biggest rivals, ConocoPhillips and Exxon Mobil Corp., already provoked public outrage with similarly large first-quarter profits. Combined, the three oil companies earned $15.7 billion during the first three months of the year. That's 17 percent more than the trio made during the same time last year when they went on to pocket a combined profit of nearly $64 billion.

"All these companies have so much money, they don't know what to do with it," said Oppenheimer & Co. analyst Fadel Gheit.

Taken together, ExxonMobil, Chevron and ConocoPhillips made a first-quarter profit of $8.19 on every $100 in sales. In contrast, Internet bellwethers Google Inc., Yahoo Inc. and eBay Inc. collectively turned a $19.20 profit on every $100 of their combined first-quarter revenue.

As important as the Internet has become, energy remains a more vital resource, generating a far higher sales volume that has fueled mounting indignation over the amount of cash pouring into the oil industry.

The combined first-quarter revenue of ExxonMobil, Chevron and ConocoPhillips totaled $191.5 billion -- more than the individual gross domestic products of 189 individual countries, including the likes of Chile, Denmark, Peru and Venezuela, according to statistics compiled by the Central Intelligence Agency.

Even as politicians snipe at the oil industry's profits, the government has been sharing in the windfall from high gas prices. In the first quarter, ExxonMobil, Chevron and ConocoPhillips turned over a combined $13.8 billion in excise taxes.

Chevron also is receiving a financial lift from a deal that Congress helped make last year. The San Ramon, Calif.-based company bought rival Unocal Corp. for $18 billion eight months ago, prevailing over a higher offer from a bidder backed by China's government. The Chinese bidder, CNOOC Ltd., withdrew after Congress threatened to block a Unocal sale to a company outside the United States.

Chevron's first-quarter net income translated into $1.80 per share, 2 cents above the average estimate among analysts polled by Thomson Financial. It compared to a profit of $2.7 billion, or $1.28 per share, in the same January-March period last year. Chevron shares (CVX: NYSE) gained $1.04, or 1.7 percent, to close at $61.02.

Isn't that just wonderful . Somebody eats well tonight. Not me though.

Supply and demand and peak oil.

It's hard to admit that you've sold out your children's future, is'nt it?

Profit Margins do decrease when CEO's get 400 million in retirement.

Should I start posting the salaries of all the CEO's of the Big Oil Companies?
Hmm supply and demand. Condoleeza Rice on Face The Nation said that there is evidence of Gas being shipped out of the United States in order to raise the gas prices. OPEC limits it's production to keep prices high. Most of the High Oil Price is based on Speculation not what it actually costs to produce it.

I'll say it again, and the article was posted in another thread, this is not a real energy crises. The oil companies did it in the 70's to raise prices for a while and the California fake Energy crises not so long ago to increase profits and stock values.

It's not rocket science.

Originally Posted by jp_48504

Profit Margins do decrease when CEO's get 400 million in retirement. Should I start posting the salaries of all the CEO's of the Big Oil Companies?

I can't defend the retirement package... but you know, it's a private company and they can do what they want. The people that should be most concerned about this are the stockholders.

Originally Posted by jp_48504

Hmm supply and demand. Condoleeza Rice on Face The Nation said that there is evidence of Gas being shipped out of the United States in order to raise the gas prices.

I suppose when Katrina hit and Europe shipped gasoline to us you were complaining about how the cost of petrol in Britain shot through the roof. Welcome to the global economy. The US does not live in a bubble despite the view of most Americans.

Originally Posted by jp_48504

OPEC limits it's production to keep prices high.

No, nature limits the production. If you didnt read my posting in the past, OPEC has stated that it is maxed out and they won't decrease output but are unable to increase it as well. I'm not going to post the articles again because it doesn't look like anyone is reading them.

Originally Posted by jp_48504

Most of the High Oil Price is based on Speculation not what it actually costs to produce it.

Why are people speculating that oil should be higher in price? Maybe they see the value of oil as a lot more precious than the average consumer? So how do you fix that? Restructure our entire market system? Instead of speculation, supply, demand do you advocate rationing and price fixing as well as the associated gas lines and shortages? Sounds a bit communist to me...

Originally Posted by jp_48504

I'll say it again, and the article was posted in another thread, this is not a real energy crises. The oil companies did it in the 70's to raise prices for a while and the California fake Energy crises not so long ago to increase profits and stock values.

Nope, OPEC did it. And it was a political action. They don't make money by not selling oil.

Originally Posted by jp_48504

It's not rocket science.

Your right in a way. When you base your way of life completely on a finite resource you should expect problems in the long run. Ask the Maya or the people that lived on Easter Island... oh, wait those civilizations collapsed.