Exxon makes $10 billion profit in a quarter (again)

[caudio51]

Suprise suprise

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.

 

[Headbanger]

Sick ain't it? So why not raise the price at the pumps some more assholes

.

 

[cvm4]

I just don't understand this. They're first loyalty is to boost the stock, but they're taking advantage of a bad situation for us all.

 

[Jwrussell]

I have more of a problem with the $350 Million dollar exit package for a CEO than I do anything else. Large company executive pay has simply gone beyond understandable in the past couple of decades. The sad thing is, so many of those dollars have absolutely nothing to do with how a company performs. Want to pay a CEO, etc. huge sums of money? I've got no problem, so long as it's tied directly with how the company does under their leadership. Anyway, slightly off topic, sorry.

There IS something to be said about the fact that overall Gas is a low margin product. My guess is that the oil companies have simply kept their margins the same. Look at it this way: 3% of 1.50 is .045. 3% of $2.50 is .075. That's an increase of 60% in profit, yet the profit MARGIN is exactly the same.

Now, the part I don't agree with is this crap about:

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.

True, they fluctuate, but I've yet to see an actual DOWNWARD trend in oil or gas prices. Last time I checked, at every 3-5 year mark since I can remember gas prices, they've never been LESS than what they were 3-5 years before.

 

[Wasch_24]

I have more of a problem with the $350 Million dollar exit package for a CEO than I do anything else. Large company executive pay has simply gone beyond understandable in the past couple of decades. The sad thing is, so many of those dollars have absolutely nothing to do with how a company performs. Want to pay a CEO, etc. huge sums of money? I've got no problem, so long as it's tied directly with how the company does under their leadership. Anyway, slightly off topic, sorry.

There IS something to be said about the fact that overall Gas is a low margin product. My guess is that the oil companies have simply kept their margins the same. Look at it this way: 3% of 1.50 is .045. 3% of $2.50 is .075. That's an increase of 60% in profit, yet the profit MARGIN is exactly the same.

Now, the part I don't agree with is this crap about:


True, they fluctuate, but I've yet to see an actual DOWNWARD trend in oil or gas prices. Last time I checked, at every 3-5 year mark since I can remember gas prices, they've never been LESS than what they were 3-5 years before.

Excellent point in the bolded section Jason.

 

[indyrob]

I do not really care for articles about these big companies posting huge profits year after year. I have no choice in the matter when it comes to buying gas, I kinda need it to get from here to there.

Those arbitrary articles do nothing more than stir up public disgust and leave you pissed off about something that you can't do anything about.

 

[joshua]

The oil companies recently got $10.7 billion in tax breaks, which probably doesn't hurt either.

 

[Jwrussell]

Sure there are things you can do Rob! Look into new diesel autos that will run Biodiesel, or the so called "dual-fuel" vehicles that will burn Ethanol as well as gas. :thumbsup:


That being said, I feel ya.

 

[caudio51]

I hear ya Rob.

It's still nice to keep up to date with what they are doing.

 

[caudio51]

Sure there are things you can do Rob! Look into new diesel autos that will run Biodiesel, or the so called "dual-fuel" vehicles that will burn Ethanol as well as gas. :thumbsup:


That being said, I feel ya.

I saw that on Trucks. Pretty cool stuff

 

[allanf]

I'm glad I downsized last month....
Much better fuel economy, and I can use regular unleaded...Which was $3.24/gallon here yesterday.

 

[Wasch_24]

What did you end up with Allan?

 

[caudio51]

No more 5 series? Down to the 3?

 

[allanf]

In Black with tan interior and Sirius radio!:clap:

 

[caudio51]

Nice, at first I did not like the new design but it's grown on me

 

[Wasch_24]

Very cool.

 

[CWS]

Probably not whatyou want to hear but this is a great stock to own. One of the robber baron stocks like Philip Morris, Cheveron etc.

 

[joshua]

Sure there are things you can do Rob! Look into new diesel autos that will run Biodiesel, or the so called "dual-fuel" vehicles that will burn Ethanol as well as gas. :thumbsup:


That being said, I feel ya.

Actually any vehicle that is diesel can run biodisel without any modification. You just have to see if your local area has a place to fuel up.

And of course theres the hybrids. Kinda a shame now that even China has higher restrictions on gas mileage than the US does.

 

[Jwrussell]

Actually that's only "kinda" true Josh. Older diesel vehicles, while they can run straight biodiesel without modification, risk having issues with the engines. I forget the specifics, but from what I remember, Biodiesel works as a lubricant as well and can cause old buildup from dirty diesel in an old engine to break away and cause clogs and such. So yes, you can do it, but you may have issues or need to get the engine cleaned first. Something along those lines. Now, as far as I know, ANY diesel engine can run a mixture of diesel and biodiesel depending on the ratio.

 

[mitchthephoneman]

I read in a car magazine somewhere that it actually costs less to build a gas driven car and operate it then these so-called dual fuel vehicles.

I have a 1996 Dodge Caravan with a small 6 and I get almost equal mileage to these so-called dual fuel vehicles.

And another thing, if you travel down south near the gulf states you take notice of all the oil rigs laying in the grass getting rusty, there is so much oil sitting in the gulf but the costs involved with paying the fucking unions, that its cheaper to import it.