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Puck
The Texan
Joined: 05 Jan 2004
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 Thu Oct 27, 2005 4:52 pm Exxon's $10B Net a U.S. Corporate Record |
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Exxon's $10B net a U.S. corporate record
The oil company gains from soaring oil and gas prices, but falls short of estimates.
October 27, 2005: 2:51 PM EDT
NEW YORK (Reuters) - Exxon Mobil Corp. posted a quarterly profit of $9.9 billion Thursday, the largest in U.S. corporate history, as it raked in a bonanza from soaring oil and gas prices.
Record profits for Big Oil at a time when consumers are paying sky-high prices for gasoline have brought calls for a windfall profits tax or other penalties on oil companies.
The companies have been enjoying an unusually rosy environment for months. In the third quarter, oil prices and refining margins rose sharply after hurricanes Katrina and Rita ripped through the Gulf of Mexico, disrupting energy operations in the region.
While Exxon's quarterly profit was up 75 percent from a year earlier, and revenue rose 32 percent to more than $100 billion, the results fell short of Wall Street forecasts due to production outages caused by the hurricanes and sharply lower profit at the company's chemicals division.
"They were a bit disappointing, but this a temporary phenomenon," said Paul Kuklinski, an analyst with Boston Energy Research/Soleil Securities. "This is largely attributable to hurricane effects."
Exxon (up $0.07 to $56.27, Research) shares fell slightly in midday trade.
The world's largest publicly traded oil company said net income jumped to $9.92 billion, or $1.58 a share, from $5.68 billion, or 88 cents a share, a year earlier.
Excluding a gain of $1.62 billion from restructuring its stake in a Dutch gas transportation business, earnings were $1.32 per share, six cents below the average forecast among analysts polled by First Call.
The record earnings topped the $9 billion net profit reported Thursday by Royal Dutch Shell PLC and were well above the best quarterly performances by Citigroup Inc. (Research), the world's largest bank -- $7.2 billion -- and conglomerate General Electric Co. (Research) -- $5.6 billion -- according to Reuters Fundamentals.
Expansion of capacity
In addition to calls for a windfall profits tax or other penalties, lawmakers and consumer advocates have been urging oil companies to expand refining capacity and take other steps to help bring down gasoline prices.
Energy Secretary Sam Bodman said Thursday that oil firms have a responsibility to boost refining capacity in times of record profits. Marathon Oil said it would do just that, announcing a $2.2 billion expansion of its Garyville, La., refinery.
"We're already seeing some companies yielding to pressure," said Oppenheimer & Co. analyst Fadel Gheit. "But everybody is waiting for the big lady to sing, which is Exxon."
Exxon said it did not see the point of a windfall profits tax.
"Frankly, if you're trying to encourage supply growth, it seems odd to put in place disincentives," Henry Hubble, vice president of investor relations for Exxon, said on a conference call with analysts.
Production falls
Exxon's oil and gas production fell 4.7 percent in the third quarter from a year earlier as outages caused by Katrina and Rita, maintenance activities, and maturing fields more than offset higher production from new fields in West Africa.
Excluding the impact of the hurricanes, divestments and entitlement effects, output fell 1 percent.
Still, record crude oil prices -- which touched $70 a barrel in the quarter -- pushed earnings at its exploration and production unit to $5.73 billion, up $1.8 billion from a year earlier.
At its refining and marketing operations, profit rose to $2.13 billion, up $727 million from a year earlier. Stronger refining margins outweighed weak marketing margins and lower petroleum product sales.
Earnings at its chemicals division tumbled to $472 million, down $537 million from a year earlier, due to higher feedstock costs and lower margins.
Exxon's capital expenditures jumped to $4.41 billion from $3.63 billion a year earlier.
Shares of Exxon, the largest of the so-called "super-major" oil companies, were little changed at midday on the New York Stock Exchange. The shares rose more than 10 percent in the third quarter but underperformed the broader Standard & Poor's integrated oil and gas index, which climbed more than 13 percent.
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Find this article at:
http://money.cnn.com/2005/10/27/news/fortune500/exxon.reut/index.htm?cnn=yes
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Theresa
Lux Mihi Deus
Joined: 17 Jun 2001
Posts: 27256
Location: United States of America
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| Thu Oct 27, 2005 7:24 pm |
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This comes as no surprise. While working for Exxon, I had access to some paperwork. We were seriously overcharging. So much so that Exxon stopped printing the price they were paying, and the price they were selling to us at.
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Superman
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Joined: 06 Dec 2003
Posts: 10220
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| Thu Oct 27, 2005 7:34 pm |
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It's impossible to envision such huge amounts of money.
Are Exxon environmentally aware like some oil companies? Do they do their bit for the environment?
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Theresa
Lux Mihi Deus
Joined: 17 Jun 2001
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| Thu Oct 27, 2005 7:35 pm |
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You have that right. They do a bit.
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Superman
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| Thu Oct 27, 2005 7:40 pm |
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I see. I know BP do their bit for the environment. Oil companies are so short-sighted, though. It's today's and tomorrow's profits and nothing else.
I wonder what wage their lowest paid staff members are on.
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Theresa
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Joined: 17 Jun 2001
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Location: United States of America
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| Thu Oct 27, 2005 7:46 pm |
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I know that some of their positions start out at $6.15/hr. They claim it's all they can afford. My manager, Carie, was... weird. She'd stand there and tell the customers who were paying over $3.00/gallon that the company was taking a loss selling at that price. I mean, lying right to their faces. I got "spoken to" once for asking if they were taking a loss, how it was they made over 4 billion dollars in clear profit the past quarter. Apparently I wasn't spouting the company line correctly.
I'd tell people straight to their faces, "yeah, we're ripping you off, and no, there is no reason for it, you all need to do something about it."
I wonder if that got back to management yet? 
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Superman
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| Thu Oct 27, 2005 7:47 pm |
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If there's anything I hate in life, it's greed. 
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webtaz99
Commodore
Joined: 13 Nov 2003
Posts: 1229
Location: The Other Side
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| Thu Oct 27, 2005 9:16 pm |
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| Superman wrote: | It's impossible to envision such huge amounts of money.
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Here's a way: If someone gave you just 1 billion dollars when you turned 18, even without interest you could spend $27,397 PER DAY for 100 years.
| Superman wrote: |
Are Exxon environmentally aware like some oil companies? Do they do their bit for the environment? |
{wipes away tears}
Tell me another one!
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"History is made at night! Character is who you are in the dark." (Lord John Whorfin)
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Tyvek
Rear Admiral
Joined: 11 Jul 2001
Posts: 2821
Location: Mississippi, USA
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| Sat Oct 29, 2005 5:08 pm |
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| Superman wrote: | | If there's anything I hate in life, it's greed. |
and that is exactly what it is, greed. You expect me to believe that these people will do anything to really curve the gas prices? I do not think so, not when they have something that we can not do without and knowing that they can charge just about whatever they want for it, knowing that we will spend it. I think it is time for the government to step in and do something to protect the people from these price gougers.
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Republican_Man
STV's Premier Conservative
Joined: 26 Mar 2004
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| Sat Oct 29, 2005 5:11 pm |
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I don't know that the government really has the power to do so--or really should.
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"Rights are only as good as the willingness of some to exercise responsibility for those rights- Fmr. Colorado Senate Pres. John Andrews
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Tyvek
Rear Admiral
Joined: 11 Jul 2001
Posts: 2821
Location: Mississippi, USA
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| Sat Oct 29, 2005 5:15 pm |
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| Republican_Man wrote: | | I don't know that the government really has the power to do so--or really should. |
The government has the power and the ability to limit the amount over the actual barrel price that the companies can spend. I'm not saying that they cap the prices, all I am saying is that they make a law that states that the companies can not price the barells so much more than the actual production costs. so if the barrell actuallys costs $35 to produce they can not charge $70 it would be somehwere closer to the median of the two... still enough for a profit, but not enough to devistate the economy like the trend seems to be going. The Oil companies will lead us into another recession and we do not need that.
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IntrepidIsMe
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Location: New York
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| Sat Oct 29, 2005 8:00 pm |
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I suppose supply and demand don't mean much. What does the fact that the oil companies can receive the amount that their asking for tell you? That people are willing to pay. If the oil prices do come down, its going to be through the people, however we all know that that won't happen. Does that mean that the government should step in? Not really.
The price of living is expensive, period. Should the government start to pay for food, or tell grocery chains to not charge over a certain amount for specific products? Why doesn't the government pay for our housing, since thats rather expensive, too? We live in a capitalist society. The line has already been drawn.
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Republican_Man
STV's Premier Conservative
Joined: 26 Mar 2004
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| Sat Oct 29, 2005 8:06 pm |
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^Exactly. I agree with Intrepid. We are in a capitalistic society, and although it may be unfair, it's the decision of the COMPANIES and not the GOVERNMENT as to how much money can be charged for a ANY product not provided by the government.
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"Rights are only as good as the willingness of some to exercise responsibility for those rights- Fmr. Colorado Senate Pres. John Andrews
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Theresa
Lux Mihi Deus
Joined: 17 Jun 2001
Posts: 27256
Location: United States of America
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| Sat Oct 29, 2005 8:31 pm |
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Gouging is illegal. Thousands were charged by the government for gouging during this past "crisis".
If the government can step in and stop airline strikes, bus strikest, etc..., it can do something about this. Bush makes most of his money from oil, he sure as hell wasn't going to jump right on it.
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Some of us fall by the wayside
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Republican_Man
STV's Premier Conservative
Joined: 26 Mar 2004
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| Sat Oct 29, 2005 8:35 pm |
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How does he make most of his money from oil? And if it is proven that they are gouging, and it is in fact illegal, then so be it--let the government prosecute them, but not cap prices or anything.
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"Rights are only as good as the willingness of some to exercise responsibility for those rights- Fmr. Colorado Senate Pres. John Andrews
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Theresa
Lux Mihi Deus
Joined: 17 Jun 2001
Posts: 27256
Location: United States of America
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| Sat Oct 29, 2005 8:41 pm |
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I personally didn't mention capping. And they are being prosecuted...
And take a look at some of the financial records released about Bush. It's public information, google it. He mas massive investments in oil. There is just as much oil now as there was when it was over $3/gallon. Less, even, accounting for what's been used, but look at the prices drop.
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Some of us fall by the wayside
And some of us soar to the stars
And some of us sail through our troubles
And some have to live with our scars
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Tyvek
Rear Admiral
Joined: 11 Jul 2001
Posts: 2821
Location: Mississippi, USA
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| Sun Oct 30, 2005 1:15 am |
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| Theresa wrote: | I personally didn't mention capping. And they are being prosecuted...
And take a look at some of the financial records released about Bush. It's public information, google it. He mas massive investments in oil. There is just as much oil now as there was when it was over $3/gallon. Less, even, accounting for what's been used, but look at the prices drop. |
EXACTLY!!! At some point it has to stop... I am in Mississippi I can tell youfirst hand about gouging to a high degree, this is gouging on a larger scale and something has to be done.
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LightningBoy
Commodore
Joined: 09 Mar 2003
Posts: 1446
Location: Minnesota, U.S.A.
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| Sun Oct 30, 2005 1:22 am |
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Gas prices aren't the fault of the Gas Companies. Supply and demand is as clearcut as it gets.
It comes down to this: if we want Gas prices down; China, India, and US consumers have to stop guzzling so much. General Motors has produced workable hydrogen cel cars, IT'S TIME TO GET THEM ON THE ROAD!
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IntrepidIsMe
Pimp Handed
Joined: 14 Jun 2002
Posts: 13057
Location: New York
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| Sun Oct 30, 2005 1:34 am |
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Indeed, if the people want prices to come down as a whole, they'll have to work together as a whole. Good luck with that.
And gouging is a comparative practice.
-------signature-------
"Nelly, I am Heathcliff! He's always, always in my mind: not as a pleasure, any more than I am always a pleasure to myself, but as my own being."
-Wuthering Heights
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Republican_Man
STV's Premier Conservative
Joined: 26 Mar 2004
Posts: 14823
Location: Classified
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| Sun Oct 30, 2005 1:39 am |
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It's our own fault, and that's it.
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"Rights are only as good as the willingness of some to exercise responsibility for those rights- Fmr. Colorado Senate Pres. John Andrews
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Superman
Fleet Admiral
Joined: 06 Dec 2003
Posts: 10220
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| Sun Oct 30, 2005 4:51 am |
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| Quote: | | If someone gave you just 1 billion dollars when you turned 18, even without interest you could spend $27,397 PER DAY for 100 years. |
I turned 18 a very long time ago, and sadly no-one gave me that amount. 
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Tyvek
Rear Admiral
Joined: 11 Jul 2001
Posts: 2821
Location: Mississippi, USA
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| Sun Oct 30, 2005 3:09 pm |
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| Republican_Man wrote: | | It's our own fault, and that's it. |
your right, it is our fault for being over dependant on cars, and not looking for a safer more expendable less expensive fuel source. But instead we are stuck with money hungry crooks that hold one thing that we need in order to survive as a first rate nation in front of us at ever increasing rates... knowing that we have NO CHOICE but to spend the money if we expect to be able to go to work to spend the money to go to work.
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Republican_Man
STV's Premier Conservative
Joined: 26 Mar 2004
Posts: 14823
Location: Classified
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| Sun Oct 30, 2005 3:18 pm |
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I think that what the American people need to do is really push for less dependence on foreign oil AND less dependence on oil period. We need to force the energy and oil companies to invest in research for alternative fuel sources NOW, before it gets too late and we run out of them. And the car companies, etc. should institute the new technologies.
And the government needs to be instrumental in trying to push this agenda forth, giving grants to research organizations, etc.
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"Rights are only as good as the willingness of some to exercise responsibility for those rights- Fmr. Colorado Senate Pres. John Andrews
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