Oil Profits Shatter Records

HOUSTON — Exxon Mobil Corp. reported second-quarter earnings of $11.68 billion Thursday, the biggest profit from operations ever by any U.S. corporation, but the results were well short of Wall Street expectations and its shares slumped 3 percent.

The world's largest publicly traded oil company said net income for the April-June period came to $2.22 a share, up from $10.26 billion, or $1.83 a share, a year ago.

Revenue rose 40 percent to $138.1 billion from $98.4 billion in the year-earlier quarter.

Excluding an after-tax charge of $290 million related to an Exxon Valdez court settlement, earnings amounted to $11.97 billion, or $2.27 per share.

Analysts on average expected Exxon Mobil to earn $2.52 a share on revenue of $144 billion, according to a survey by Thomson Financial. The estimates typically exclude one-time items.

The record-setting results were largely expected, given that crude prices in the second quarter were nearly double what they were a year ago. Natural gas prices were significantly higher too.

But investors expected even bigger profits Thursday, especially after Europe's Royal Dutch Shell reported a 33 percent jump in second-quarter earnings to $11.6 billion, which fell just shy of Exxon's own record earnings from 2007.

Exxon Mobil shares fell $2.64, or 3.13 percent, to $81.74 in afternoon trading.

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Setting U.S. profit records has become commonplace for Irving-based Exxon Mobil. The $11.68 billion topped its own U.S. record of $11.66 billion, posted in the fourth quarter of last year. Right behind that was the $10.9 billion it reported to start 2008.

In fact, if one-time gains like bankruptcy settlements and spinoffs are stripped away from other companies, Exxon Mobil owns the record for the top 10 most-profitable quarters for a U.S. company, as well as the largest annual profit.

United Airlines' UAL Corp. reported first-quarter profits of $22.9 billion in 2006, but that reflected a bankruptcy settlement, not true profit. The airline would have posted a $306 million loss if those gains were stripped out.

Ford Motor Corp. reported profits of $17.6 billion in the first quarter of 1998, but that included a $16 billion, one-time gain from the spinoff of Associates First Capital.

Exxon Mobil, which produces 3 percent of the world's oil, got its biggest boost from its exploration and production arm, where earnings rose 68 percent to $10.01 billion from $5.95 billion a year ago. The main driver was record crude prices, partially offset by lower sales volumes and higher operating costs.

Once again, Exxon Mobil's results revealed a troubling trend at the heart of its business.

Production on an oil-equivalent basis fell 8 percent from a year ago _ a significant blow for a company that generates more than two-thirds of its earnings from oil and gas production. That follows an opening quarter of 2008 when the company said overall production fell 5.6 percent from a year ago.

Excluding last year's loss of its Venezuelan assets, a labor strike in Nigeria and lower volumes because of production-sharing contracts, Exxon said production was down about 3 percent in the most-recent quarter.

Like its competitors, Exxon Mobil said it took a beating from lower global refining margins. Earnings from refining and marketing fell 54 percent in the quarter to $1.55 billion.

For the first six months of 2008, Exxon Mobil said it earned $22.57 billion, or $4.25 a share, from $19.54 billion, or $3.45 a share, in the first half of 2007. Revenue rose to $254.9 billion from $185.5 billion.

Comments

[LaFeminazi]

Petro_china.

Roast crispy duck all round!

[Catharsis]

You are a tragic ethnocentrist.

[LaFeminazi]

I like roast crispy duck.

Don't you?

[CrapWhisperer]

.

"BushzzAides have no immunity from subpoenas, judge rules"

Another blow to the corrupt admin in the wh ... more of the same johnmclamez?

LOFL

The ruling by the way came from a bushzz appointed judge!

Link: http://news.yahoo.com/s/ap/20080731/ap_on_go_ot/congress_contempt
.

[ChiGuy]

The judge had one of two reasons for the ruling:
1.) It was the right thing to do.
(How sad is it that I'm skeptical?)
Or,
2.) It was a message to BooshCo asking, "What have you done for me lately?"

[CrapWhisperer]

.

"Bush aides have no immunity from subpoenas, judge rules"

Another blow to the corrupt admin in the wh ... more of the same johnmclamez?

LOFL

The ruling by the way came from a bushzz appointed judge!

Link: http://news.yahoo.com/s/ap/20080731/ap_on_go_ot/congress_contempt
.

[ThunderclapNewman]

It's a great thing---from a judge appointed by Booosh himself.

[TimnySlagle]

I thought we were having fun, but I just got wiped of the board.

I know when I'm not wanted.

What's the matter HuffPo,

Can't handle the Truth?

[comacoma]

Truth is fine... lying a@@h@les such as you are not welcome anywhere.

[TimnySlagle]

See what I mean?

I would never say something so rude to another poster, and yet it's MY posts that get wiped.

[VolvoBirkenstock]

You've made this complaint before:

TimnySlagle
The Mods just put a block on my account. I'm not going to play if I'm not being allowed to speak freely. Thank you all for a very enjoyable debate this morning. Timmy is outta here.
posted Jul 20, 2008 at 10:55:26

[TimmySlagle]

No, that time they started delaying all of my comments, rather than posting them directly. The conversation was so fast and heated at that point, waiting a half hour between posts, would have put me in a disadvantaged position.

So I bailed.

This time, everything just disappeared, and my Deleted Comments ticker went up by 24 (which was the amount of posts I had on this thread). So I changed the spelling of my name.

It seems that my complaints got someone's attention, since most of my original posts are back. (The one I put up, complaining to the monitors about the wipe, did not.)

[suzyhein]

they are coming and going this morning. don't jump the gun. it may come back

[Destin]

I don't think it's you, more likely it's the database for these postings must be getting snafu's or updates aren't happening on time or something, lol. I don't run it, so I can't really explain it.

But I have made a post, waited a bit, refreshed page to see if it had appeared, and well, the entire page of posts had vanished. Wow. More than once I had to look and see if there was a "comments for this post are now closed" message somewhere, lol. But I'd refresh and everything would be back to normal.

[Succatash]

I understand peoples frustration with paying high gas prices, but a few other points.

1. My father was a retired hydrologist with the USGS. He went back to work 10 years ago with gas companies in Northeast wyoming. He hired my older brother, my brother-in-law, several college and high school friends. Over the last eight years these people have made good money to buy houses, cars, savings etc. He now has two offices, 15 employees who are all making salaries way above the average for this area.

2. In Wyoming we are trying to balance oil/gas exploration with the enviroment. Thousands of people are making salaries right out of High School of $25-$50/hour. Way more if engineers, surveyors etc. Our unemployment rate is like 3%. BILLIONS of dollars have been put in Wyoming State coffers. We are building new schools in nearly every community in Wyoming. This has created hundreds of additional jobs.

3. Thousands of windmills are being built and placed. Hundreds of additional jobs.

4. Massive open-pit coal mines provide excellent pay for thousands. This is clean, low-sulfur coal. Railroads to transport it out employ thousands more.

5. Companies are trying to recruit out of Michigan, etc to find skilled workeres. I am amazed when I hear stories about communities with high unemployment, economic troubles. People, the jobs are there even if they are not in you current community. COME TO WYOMING!

Peace out brothers

[Ariadne]

4. Massive open-pit coal mines provide excellent pay for thousands. This is clean, low-sulfur coal. Railroads to transport it out employ thousands more.

OOOH lets do that everywhere!!

[Succatash]

C'mon Ariadne.
Sorry, but currently we need coal. Maybe not in twenty or fifty years.
What is your solution other than sarcasm.
Better to work in an open pit coal mine than a thousand feet down in a tunnel.

My point is that thousands of people in Wyoming make a good salary, have excellent health insurance and a good life because of the energy industry. I am all for a transition to alternative energy (windmills) but that will take time.

[noamjunior]

no thanks

[CuriousPerson]

Isn't someone high up in govt. from wyoming?

I can't remember, their name is right there....

Hmmmm.....

[swooge]

There is no such thing as clean coal.

It's nice that people are making money while contributing to the ultimate death of their world but there ARE alternatives.

[schicklett3]

Excellent post!
I find that people want the jobs to come to them, and many will never leave their community. So, they moan and groan and go on welfare instead of moving to where the work is.
You HAVE to go to where the work is if you want to succeed...­.otherwise­, do without.

[TurgidCaterwauling]

The big red Exxon in the headline reminds of the parody in Kentucky Fried Movie - sign of the double cross.

[harveyr2]

Think people, don't just react to headlines designed to generate emotions. There is a HUGE difference between total profit dollars and profit percentage.

Exxon's US tax rate paid is much higher than most large multi-national US companies since the majority of its profits are from US operations. The US has the second highest corporate tax rate in the developed world.

So what does Exxon do with its profit? Invest in future drilling and refining capacity and distribute it to shareholders. Both of which generate growth for the nation. If you want lower gas prices then drive LESS.

Disclosure: I am not an Exxon employee and not a direct investor in Exxon (a mutual fund that I own may own Exxon shares).

[GoodGuysandBadGuys]

so that makes it all okay that we pay $4.00 a gallon. we should just be happy to fork it over to them.

[justanotherbushhater]

Good for you!

You put your mouth where your money is!

Those prices are OUR fault. Poor oil companies are just trying to make a living. They're good, loyal Americans and pay U.S. taxes [actually, not sure about THAT!] and wouldn't gouge and take advantage of us, would they?

I feel SO much better knowing that the windfall oil profits are benefiting mankind. They're just corporate saints!

[noamjunior]

no, you don't work for Exxon, you are just a happy little ignoramus content to parrot their outrageous talking points

my favorite is that Exxon uses their profits "Invest in future drilling and refining capacity and distribute it to shareholders. Both of which generate growth for the nation." - that must be why Exxon is sitting on thousands of drilling leases.

[TimnySlagle]

" why Exxon is sitting on thousands of drilling leases"

actually, they're contractually obligated to pay those leases even though they're no oil in them.

You make the bid, you pay the fed, regardless of whether you find oil. Which is another way Exxon helps America, by putting money into the Treasury.

[Thron]

Oh my my! They pay tax. That's inhuman. So if I understand well, only now they see the sunlight through the clouds?

[MalamuteMan]

Not a stock holder, but nonetheless a fan of unfettered corporate greed...

[BexSF]

Only $11 Billion in a quarter. Oh, now I understand why they have no money to drill on the 68,000,000 Acres of land they already lease from the Government for $3/Acre specifically to be used for drilling oil.

With only $11,000,00­0,000.00 this quarter it must be real hard to fund the cost of finding oil on 68,000,000 Acres of land.

IF YOU'RE NOT OUTRAGED YOU'RE NOT PAYING ATTENTION!

[MalamuteMan]

I was outraged long before I heard this...

[ofbbg]

They're probably not drilling because there's NO OIL THERE, dummy!!

[CuriousPerson]

So they leased land for drilling purposes that didn't have oil?

Gee...

[lattedrinker]

Do your research you tool.

The OIL COMPANIES HAVE NOT EVEN TESTED THE LEASED LAND TO SEE IF OIL IS IN IT. THEY WOULD RATHER DRILL WHERE THEY KNOW THE OIL IS... IE. ALASKA/ANWAR/US COAST LINES. UNFORTUNATELY, ALASKA AND OUR COAST LINES ARE PROTECTED.­... WAIT AT LEAST ALASKA STILL IS.

LASTLY... DRILLING FOR OIL IS LIKE PLACING A TYPICAL BANDAID ON A SOMEONE WHO HAD BOTH ARMS AND LEGS BLOWN OFF.

WE NEED ALTERNATIVES.

THANKS FOR YOUR CONCERN THOUGH.

[Destin]

This will be in danger of straying off topic some, but it's to do with energy companies like ExxonMobil and the rest.

Why does the govt allow monopolies and monopolistic markets like wall street, to run riot over the consumers in such a fashion. Why aren't the consumers given a choice?? If not a choice in gas prices via competion, then give us a choice in regard to alternative forms of energy to power our vehicles. Such as a 2008 Ford Mustang GT LE ('Letric Edition). Gives a whole new meaning to "plug and play". :)

But beyond that, and these same companies like ExxonMobil, feed our local power plants their fuel to produce electricity in alot of places. What's interesting, within 50 miles of me is a big hydro-electric powerplant/dam, and a coal powered powerplant. Both run by the State utility, Georgia Power. But my city, is forced to operate on a "cooperative" eletric company. Meaning, they buy gas/fuel/coal and convert to eletricity. I have no choice to switch to Georgia Power, as they are limited by the regional monopolies. Same thing, in effect, as the telephone and cable companies are doing.

So, Mr. President, isn't competition and competing companies supposed to be GOOD?? Why won't you allow it??

[JohnPaulJones]

Well, since there are only about 3 or 4 officials in DC who actually understand what the real "free market" is and not "corporatism", I'm afraid you are stuck with Georgia Power (unless you can get solar panels). Elected officials in both parties will always use government as a protector of companies from competition -- see the 2008 Farm Bill and the 51-cent a gallon tariff on imported ethanol.

[Destin]

I'm not stuck with Georgia Power, lol. I'd like to switch to them. But that was my point, my local electric cooperative owns the rights to my area. Flint Electric, they are called. We don't have a choice in who provides our power. Just like we don't have a choice who provides our phone service (AT&T) and who provides our cable tv (Cox Cable). If you go cellphone, hell yah, get tons of competition there. But they all charge the same thing, lol. So collusion is no different than a monopoly in that respect.

[Voltage]

It's not the President's fault, it's the Dems because they won't allow the poor oil companies to offshore drill. If only...the­n we'd all be a lot happier.

[Destin]

Hmmm, giving the oil monopoly more oil, yah, that's the cure isn't it? LOL. You are part of the problem. When are you gonna become part of the solution?

[bluesnot]

Tell your senators, Democratic and Republican alike, to support S.3335. It provides incentives for alternative energy. What are they waiting for!!???!

http://dpc.senate.gov/dpc-new.cfm?doc_name=lb-110-2-128

[JohnPaulJones]

I love all this "mockrage", as if an international oil company with only a quarter of its operations based in the US is the big problem facing our country right now. Not the War on Drugs, the ever-increasing prison population, the failure of inner-city public schools, inflation, FISA...and on and on.

[Thron]

Those problems are not taking the money right out of our wallets Johnjones. Do you fly like Superman to go to work?

[JohnPaulJones]

So it's free to build prisons and keep non-violent offenders locked up? Public schools are free too, right?

[Destin]

I got some questions for you, and I expect a truthful answer. Hell, I'd appreciate even answer if you dare, lol.

If ExxonMobil is 75% non-US company, why are they listed as being a US company??

If their taxes are so outrageously high, then why don't they relocate to some other country, say tax-free places like Cayman Islands or Switzerland or, gasp, the UAE like Halliburton did??

And the reason the big oil company is causing so much outrage, is that they help inflate the prices of everything from a can of soup, to what you pay the electric company, to public transportation, newspapers, etc. When prices in one area goes up, others join in so thatt they can afford to keep up. People that deliver cans of soup to the market, have to pay double the gas now than they did a few years ago. You think they gonna just take those losses out of their own wallet?? Hell no, it's passed on. My electric company has to buy it's fuels to provide us electricity. ExxonMobil isn't just OIL, but also NATURAL GAS and COAL. We have both electric and natural gas in this house. It's obscene what our bills are getting up to. Kills us in summer, kills us in winter. We are affected by Big Oil in more ways than you realize.

[JohnPaulJones]

Well, they are headquarted in Texas and listed on an American exchange, so I think that takes care of your first question.

Well, since they operate in America, as well as plenty of other countries, they would still have to pay tax on their operations here. If they want to relocate, that's on them, but that would also mean thousands more to add to the swelling unemployment numbers.

Look at this list of the biggest oil companies:
http://www.petrostrategies.org/Links/Worlds_Largest_Oil_and_Gas_Companies_Sites.htm

There is a high demand GLOBALLY for oil and natural gas and since they are finite resources, high demand will push up the price, as will speculation.

[Thron]

The problem is not being dependent on foreign oil, it' s to be manipulated by those oil companies. And beyond the abject, the republicans want to give to those oilshmoks more tax cut.
While the economy is strangling the poor and the middle class, I see deaf and blind oilshmok bleeding America dry.

[TheRebel82]

The GOP is in Exxons backpocket. Exxon is probably bankrolling lots of these morons in the house for the GOP, with that offshore drilling bull. Thats just another way for these corrupt big oil freaks to keep getting more and more profits. Wake up america! Offshore drilling is a scheme for big oil to reap more profits and benefits!!

The GOP needs to be a permanent minority in congress FOREVER!!!­!!!!!!!!!!­!!!!!!!!!!­!!!!!!!!!!­!!!!!!!!!!­!!!!!!!!!!­!!!!!!!!!!­!!!!!

[ROFLMAO]

Well, we will soon find out that the Dems are no better - what, you think that one party wears haloes and the other carries pitchforks? they are all human, and therefore corruptible. The true aim of congress is to do nothing while pretending to do something. It amazes me when I hear people expecting politicians to actually HELP them.

[OgreDaddy]

The only thing that will bring this corporate controlled Congress to it's knees is an organized
transportation strike!

Cut them off where it hurts.

[Ammobob]

Wow, this doesn't make sense and runs contrary to the implied 'greedy coporation' headline:

"The main driver was record crude prices, partially offset by lower sales volumes and higher operating costs."

Since Exxon only controls roughly 3% or the crude, the other 97% must be a WHOPPER!

[DesertLight]

the biggest quarterly profit ever by any U.S. corporation, but the results were well short of Wall Street expectations and its shares fell.

Now that was a kil-ler line.

[ThunderclapNewman]

It shows how greedy and unrealistic Wall Street has become after 30 years of right-wing economic planning.

[DesertLight]

30 years of right-wing economic planning.

How did you arrive at that?

[ofbbg]

How about 30 years of meddling in the market place by the hostages of the EnvirNazis, the NeoComs in Congress - Dems and misguided Repubs alike?

[martinchill]

there's trouble ahead, mateys....