Exxon profits surge 75 percent to nearly $10B

[Sean]

http://money.cnn.com/2005/10/27/news...ex.htm?cnn=yes

NEW YORK (Reuters) - Exxon Mobil Corp., the world's largest publicly traded oil company, said Thursday quarterly profit surged 75 percent to nearly $10 billion, raking in a bonanza from record oil prices. The profit was the highest in the company's history, surpassing the record it set in the 2004 fourth quarter. Revenue jumped 32 percent to just over $100 billion. Two powerful hurricanes ripped through the Gulf of Mexico in the third quarter, disrupting energy operations in the region and sending oil prices and refining margins sharply higher. Exxon Mobil said net income rose to $9.9 billion, or $1.58 a share, in the third quarter 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. On that basis, analysts' average forecast was $1.39, according to Reuters Estimates. Exxon (unchanged at $56.50, Research) shares rose slightly in pre-market trade. The company's oil and gas production fell 4.7 percent from a year earlier as outages caused by Hurricanes Katrina and Rita, maintenance activities, and maturing fields more than offset higher production from new fields in West Africa.

[Jack]

That's great news for my 401k plan, which happens to be invested mostly in oil companies...but bad news for my ability to go anywhere economically.

[bishop]

i've taken an entirely different approach in my IRA... i'm not sure how old you are, but since i'm only 25, i decided to take a long-term bet.

30% of my portfolio is in PBW - an alternative energy EFT.

[tman_ndsu08]

Quote by: bishop i've taken an entirely different approach in my IRA... i'm not sure how old you are, but since i'm only 25, i decided to take a long-term bet. 30% of my portfolio is in PBW - an alternative energy EFT.

Nuclear physics is not the answer to our energy needs.

[bishop]

nuclear physics???

the fund i mentioned doesn't even invest in nuclear energy!

please be a little less ignorant before you post again.

[Dirty Name]

ahh...the dreaded "P" word.

Since when is profit bad news?

[lsbskins1]

The problem is not the "P" word, but the "G" word. The oil companies took advantage of the hurricans to gouge the public. If the reason oil prices shot up the way they did was because of lack of supply from damaged distibution networks, their profits would have been undercut by higher costs involved in overcoming these obstacles. Appertly, this wasn't really a problem. So, greed was the factor behind the costs. And, if you want a source you consider pretty reliable to tell you that this is wrong, try this on for size:

MAT 23:25 "Woe to you, teachers of the law and Pharisees, you
hypocrites! You clean the outside of the cup and dish, but inside
they are full of greed and self-indulgence.

PHI 2:3 Do nothing out of selfish ambition or vain conceit, but
in humility consider others better than yourselves.

1PE 5:2 Be shepherds of God's flock that is under your care,
serving as overseers--not because you must, but because you are
willing, as God wants you to be; not greedy for money, but eager
to serve;

[bishop]

and i believe exxon was given tax cuts thanks to bush...

obviously, they are in need. $10 billion in one quarter is just too little.

[tman_ndsu08]

Quote by: bishop nuclear physics??? the fund i mentioned doesn't even invest in nuclear energy! please be a little less ignorant before you post again.

30% of my portfolio is in PBW - an alternative energy EFT.

PBW = Pulsed-Beam Wavelet

EFT = Effective Field Theory


Don't expect us to automatically know what your acronyms stand for.

[bugsbunny04]

Quote by: tman_ndsu08 PBW = Pulsed-Beam Wavelet EFT = Effective Field Theory Don't expect us to automatically know what your acronyms stand for.

hell that was ove MY head. Imagine everyone else. I still dont know what that means, but okeydokey.

[bishop]

Quote by: tman_ndsu08 PBW = Pulsed-Beam Wavelet EFT = Effective Field Theory Don't expect us to automatically know what your acronyms stand for.

your reading and comprehension skills are top notch tman.. it wasn't like i was talking about investing or anything.. do you know how to read in context? :rolleyes:

[tman_ndsu08]

Quote by: bishop your reading and comprehension skills are top notch tman.. it wasn't like i was talking about investing or anything.. do you know how to read in context? :rolleyes:

alternative energy

You started talking about alernative energy sources!

[zealots buddy]

The price of oil was allready jacked up too high before the huracanes,their just trying to use that as an excuse.The senate hearing are going on right now so they have to make it look good [they =the SENATE AND the OIL COMPANIES][The senate knows whats going on just like they knew all the info was boobus to go to war in the middle east]notice how the oil people are skipping around on how they price oil and how the senators are avoiding asking the oil people what they generally pay for the oil and then what they sell it for.This is how it most likely go's,Opec[witch controlls the oil in the middle east and what is paid to the countries leaders there sets a price per barrel ,bulk at maybe up to $5.00 dollars a barrel ,the oil people buy this oil and it probley acounts for 80 to 90 % of the oil consumed by U.S..They hold on to this oil then take the other 10 to 15% from other countries including ,our country and put it up for bidding on the stock market[mercanteal] and bid it up now to $60.00 dollars a barrel ,[they can allways put a shill in place to make sure the price is where they want it] then they put all the oil together and saythat that is what all the oil is worth to justify the high price they are asking for gasoline .They have made $50.00 a barrel on 80 to 85% they paid $5.00 a barrel.Plus the profit on what they make on jacking up the price of gas ,because they know the people need that gas to get back and forth to work ,ect...and have no choice but to pay what ever they can scamm they people out of. Look at Venuselwala.They're pumping it ,refining it ,and then selling it to their people for ten cents a gallon.They care about their people .Thepeople running thing here oviuosly care only about two things lining Their pockets and them selfs.Their not thing about this country and the hardships its putting on our people.

[zynner]

Exxon earned just under 10% profit on their total revenues. That's neither "gouging" nor "greedy." The industry ("big oil") is generally closer to 7% profit margins. When they have quarters where they lose money, I don't see anybody crying that we should subsidize their losses.

The reason for their record profit in dollar amount is because they had a record in revenues. The reason they had a record in revenues is because (a) they are one of the largest companies in the world -- if General Electric, Microsoft, or IBM had record revenues, they might have made a similar or bigger profit -- and (b) they happen to be in the oil industry, which had record oil prices during the quarter -- as well as hurricanes that shut down refinery production for several days.

Oil prices are set by the free market in the oil futures markets. The governments that own oil (Saudi Arabia, Canada, Mexico, etc.) set the price they will offer oil at for the upcoming month, partly on the oil prices in the futures markets and partly based on how much they want to sell for that month. The oil companies (like Exxon) can then either take it or leave it. That's how the contracts are set up.

None of the bullshit political rhetoric matters at all -- other than to get people to fight each other over nothing. China and India have a much higher demand for oil than in the past. That tends to drive prices higher, overall. The oil companies own the refineries and that's where the bottleneck occurs. More refineries would lead to lower oil prices, but governments won't allow it. More competition in the oil industry would lead to lower prices, but governments won't allow it (because big oil, like other big business, make campaign bribes to congressmen). If the US government did not meddle with the people in the Middle East, oil prices would be much, much lower. But then what would the politicians do with their time? They have to abuse power in some way, after all. That's all they ever do.

So, governments prohibit oil refineries to be built, limit competition in the free market, wage war in oil-rich countries, and then bitch and moan that prices go too high. They need a scapegoat for their own screwing with the free market so that they can use your own emotions against you when it comes time to get campaign bribes and votes. That is ALL this crap is about. Nothing more. Supply and demand drives prices. Politicians interfere on both sides of the equation and then look for someone to blame when it inevitably goes wrong. All the rest is nonsense for the masses to get riled up about something so that the politicians can gain and abuse power. That's all it is. Nothing more.

Plus, oil prices tend to be somewhat self-correcting. As the price goes up, people adjust by looking for alternatives or using less. One day, oil will be over $100 per barrel, maybe $200. It will become cost-effective to use alternative energy sources by then.

Nothing to worry about. It's just the politicians using your emotions against you to screw things up even worse. Pay no attention.

~ zynner

ps: I haven't been around here for awhile. I was on too much and decided to do other things. If anyone has unfinished debates with me they'd like me to respond to, let me know. I'll check in from time to time, but won't be posting as much.

[Osborn F Enready]

I propose we get rid of the Salvation Army charity, and convert the workers to taking donations for those poor, destitute oil companies.

Who will help these poor people if we don't?

[Boetie]

What amazes me is how stupid these oil execs in the Senate hearings were.

To all stockholders,

I am happy to offer my services for the tune of untold millions including millions in bonuses and perks. I can be just as stupid as the current CEO's you are now throwing your money at.

To the people of the United States of America,

I can be just as stupid as Bush Jr too.

Thank You all and I await your response.

[tman_ndsu08]

Quote by: Boetie What amazes me is how stupid these oil execs in the Senate hearings were. To all stockholders, I am happy to offer my services for the tune of untold millions including millions in bonuses and perks. I can be just as stupid as the current CEO's you are now throwing your money at. To the people of the United States of America, I can be just as stupid as Bush Jr too. Thank You all and I await your response.

I listened to some of the hearing on CSPAN 2. I was very impressed with how the CEOs handled the verbal nonsense blastings by the senators! Very impressive indeed!