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BoM Nov '05; Mar '06
Suprise suprise
http://money.cnn.com/2006/07/27/news/companies/exxon/index.htm?section=cnn_topstories
http://money.cnn.com/2006/07/27/news/companies/exxon/index.htm?section=cnn_topstories
Exxon Mobil makes over $10 billion
Oil giant soundly beats estimates, but doesn't top previous record quarter.
By Steve Hargreaves, CNNMoney.com staff writer
July 27 2006: 8:43 AM EDT
NEW YORK (CNNMoney.com) -- Exxon Mobil, the world's largest publicly traded company, Thursday posted a near-record profit of $10.36 billion, or $1.72 a share, in the second quarter, as surging oil prices helped the company soundly beat estimates.
The company's profit - nearly $1,318 a second by initial estimates - is the second largest ever reported by a U.S. company, the largest being the $10.7 billion Exxon made in the fourth quarter of 2005.
Analysts were looking for Exxon to post profits of $9.92 billion, or $1.64 a share, according to First Call. Exxon (Charts) shares edged higher in pre-market trading. (NO SHIT)
Exxon Mobil caught considerable flack from the general public for its record fourth-quarter 2005, which came soon after gasoline prices hit an all-time record.
Compounding matters, the company gave its outgoing CEO Lee Raymond a retirement package worth about $350 million around the same time.
The combination of events led to a public outcry calling for restrictions to CEO pay, and from lawmakers who wanted to institute a windfall profits tax on the oil industry or even break up some of the oil giants that merged in the 1990s.
But the industry has said that oil prices fluctuate widely over time and that, over the long run, its actually less profitable that several other sectors.
It has also argued against a government-forced break up, saying it needs the economies of scale to compete in a global market against foreign state-run firms, some of which are larger than Exxon Mobil.
Surging oil prices undoubtedly helped Exxon with its second quarter results, which were 32 percent higher than the same period a year prior.
During the same time, the price of crude has jumped 31 percent.
Exxon said its expenditures on exploration and production rose by 8 percent in the quarter.
That may be good news for investors, who were concerned high oil prices would lead to company to get frivolous with its spending.
But it may be bad news for consumers hoping more oil on the market would help lower gas prices.