XOM's quarterly profit increases 75 percent from a year earlier, and revenue rose 32 percent, yet still below market expectations. http://money.cnn.com/2005/10/27/news/fortune500/exxon.reut/index.htm?cnn I realize their sole responsibility is to the shareholders. But when smug analyst say: You and I pay 3 bucks a gallon and it is still a disappointing day for them. I want to beat them with my shoe.
Exact same story, but with a positive spin. http://biz.yahoo.com/ap/051027/earns_oil.html?.v=4 AP Exxon Mobil, Shell Post Record Profits Thursday October 27, 1:41 pm ET By Steve Quinn, Associated Press Writer Exxon, Shell Report Record Profits; Exxon Becomes 1st U.S. Co. to See $100B in Quarterly Sales DALLAS (AP) -- High prices for oil and natural gas propelled Exxon Mobil Corp. and Royal Dutch Shell PLC to their best quarterly results ever on Thursday, with Exxon becoming the first U.S. company ever to ring up quarterly sales of $100 billion. To put Exxon's performance into perspective, its third quarter revenue was greater than the annual gross domestic product of some of the largest oil producing nations, including the United Arab Emirates and Kuwait. The world's largest publicly traded oil company also set a profit record for U.S. companies by posting net income of almost $10 billion, according to Standard & Poor's equity market analyst Howard Silverblatt. Both Exxon and Shell said their performances were buoyed by higher crude-oil and natural-gas prices, even as output suffered due to a busy hurricane season in the Gulf of Mexico. The companies noticed slight decreases in fuel demand. Exxon's net income ballooned 75 percent to $9.92 billion, compared with $5.68 billion a year ago. The previous oil-industry earnings record was Exxon's 2004 fourth-quarter profit of $8.42 billion. Revenue grew to $100.72 billion from $76.38 billion in the prior-year period. At Shell, third-quarter net income grew 68 percent to $9.03 billion, compared with $5.37 billion a year earlier. Revenue at the Anglo-Dutch company rose 8 percent to $76.44 billion. "We are capturing the benefits of high oil and gas prices and refining margins," Shell Chief Financial Officer Peter Voser said, referring to the profit margin on each barrel of crude that is refined into gasoline, diesel and jet fuel. Shares of Exxon rose 3 cents to $56.23 on the New York Stock Exchange, where U.S.-traded shares of Shell rose $1.30, or 2 percent, to $60.80. Excluding certain items, Exxon's profit was $8.3 billion, or $1.32 per share, or slightly below the $1.38 per share expected by analysts polled by Thomson Financial. With oil futures above $60 a barrel for much of the third quarter, Exxon's profits from petroleum exploration and production increased by $1.8 billion to $5.7 billion. Soaring prices for gasoline, diesel and jet fuel lifted refining and marketing profits by $727 million to $2.13 billion. However, income at the company's chemicals unit declined by $537 million to $472 million, a reflection of the higher prices for raw materials. Exxon said the hurricanes slashed U.S. production volumes by 5 percent from a year ago, while global daily production slipped to 2.45 million barrels of oil equivalent from 2.51 million barrels. By the end of the year, it will cost the company about $100 million after taxes, the company estimated. Shell said its adjusted earnings, arrived at by stripping out the fluctuating value of petroleum, was $7.37 billion, sharply higher than analysts' forecasts. Shells profits from exploration and production increased by $2.6 billion to $5 billion in spite of an 11 percent decline in oil and natural-gas output. Its refining and marketing profit climbed by $201 million to $1.7 billion. Its chemicals business saw profits decline by $251 million to $321 million. Shell said hurricane damage would cost it about $350 million, although much of the expense would be covered by insurance. Also on Thursday, Marathon Oil Corp. said third-quarter profit more than tripled to $770 million, up from $222 million a year earlier. Most of the profit came from its oil and natural-gas production unit. However, the results fell short of Wall Street's aggressive estimates and Marathon's stock dropped $2.23, or 3.7 percent, to $58.85 on the NYSE.
If you're so confident that prices are going to $4, go out and buy futures contracts on gasoline. You'll get rich and retire if you're right. In other news, prices have been coming down rapidly across the country. I'm seeing $2.50 and lower for regular.
First, I do not have that much to invest in commodity(too risky). Second, by soon enough I do not mean next six month or year. Is three years soon enough? With China and India demanding more oil for economic growth, it would be a wonder if oil price does not go up in the next few years.
Peak oil. meaning the worlds production of oil has reached it's peak and on the decline. Some say it's already happened, some say another 20yrs. imagine $182 a barrel, which translates into $7 per gallon. i've been reading up on this subject and it is very very interesting. Some say it's BS, some say it wont' happen for 100yrs, some say it's happened already. http://www.lifeaftertheoilcrash.net/
I don’t know about India, but Conoco Phillips is in the Bohai Bay and will have first oil soon and we are set to have many more PDQs for China... if things go as expected I don’t think China will have any demand to import much oil in future..
If by chance my forecast is wrong in three years. I couldn't be happier! I will publicly bow to bigtexxx (here on bbs) for doubting his wisdow.
i'm as happy as the next guy that prices are going down, but i don't think we should be happy that it's around 2.20 now. i'm afraid this may be the norm. anything above 2 dollars is still high, yet we seemed to accept it as ok b/c of where the prices were previously.
I was so pissed reading this article I sent an email to Bill O'Reilly who's been criticizing the oil companies price gouging for a hwile now.
I understand that people are bitter, but it is oversimplifying to blame ExxonMobil for record profits while pump prices are high. Most large energy companies make their profits in the upstream - that is producing and selling crude oil and gas and to a lesser extent in refining, not generaly in retail sales. If they are shown to be engaging in illegal market activities such as price gouging, fixing or opportunistic price hikes (and I don't know if they are) then yes you have a case. There is short term pain, but high fuel prices, IMHO, are a necessary evil. We need to change our ways and maybe this is the catalyst. Perhaps a few people here will sell their SUVs & trucks and buy a 4 cylinder car as a result? Can't be a bad thing.
Hardly. If you buy into the argument that the war in Iraq was fought over oil, it was to increase oil production and decrease prices, not the other way round. It presents a interesting question, probably more suited to the D&D forum
Is it a coincidence that when Bill O'Reilly started his 'crusade' against 'Big Oil' was when the prices, inexplicably, started coming down (despite more hurricanes and no serious changes that would lead to such a decline in gas prices)?
