Exxon Mobil 2Q profit sets US record, shares fall

[HARDCORE]

[media]http://news.yahoo.com/s/ap/20080731/ap_on_bi_ge/earns_exxon_mobil[/media]

Exxon Mobil 2Q profit sets US record, shares fall

By JOHN PORRETTO, AP Business Writer 2 hours, 12 minutes ago

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 fell.

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 $2.81, or 3.3 percent, to $81.57 in morning trading.

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.

Exxon Mobil owns the record for at least the top six most-profitable quarters for a U.S. company, as well as the largest annual profit.

The company, 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.

[Gimpy]

obscene!


Gimp

[reconeil]

OBSCENE indeed!!!,...and especially since ALL of our cavalier
political leaders/rulers of whatever BENT (entire U.S. Congress inclusive) permit and
have permitted such daily & perpetual a rip-offs from YOUR/MINE/EVERYONES very
own Natural Resource,...FOR QUITE SOME TIME.

Remember, The richest people per capita on earth and/or Saudis ONLY SCREW-OVER
OTHER NATIONS in The World, with "Their" Natural Resource of Crude Oil.
Last heard that all Saudi Sheiks, Stock Brokers & such only paid about 47 cents a
gallon for gasoline to fill the tanks of their Mercedes, Lamborginis, Alfa Romeos &
Rolls Royces,...and which greatly improves their economy & helps their people in general
EVEN build skyscrapers in the desert.

Would that America's Ruling Elite Controllers were as wise, sensible & less restrictively
stifeling of Our Economy & People Punishing,...WITH OUR VASTEST of Natural Resources?
One of largest EXPORTERS of Oil on earth having to IMPORT Oil,...isn't very bright either.

Perhaps politicians should renegotiate Oil Leases quite differently, for-a-change?
Maybe instead of just Oil Companies & Governments (Local/State/Federal) profitting greatly
from such (the greedy norm),...non such should ever be sold unless GREATLY BENEFITTING
The American People ALSO.

Neil

[Packo]

I see the profit.....what is their profit margin?

Would love an answer to that.

Oh, and, I am no defender of oil companies but how many 401K's of the "little people" in this country rely on big oil?

Inquiring minds want to know.

Pack

[SuperScout]

Originally Posted by Packo

I see the profit.....what is their profit margin?

Would love an answer to that.

Oh, and, I am no defender of oil companies but how many 401K's of the "little people" in this country rely on big oil?

Inquiring minds want to know.

Pack

Absolfreakin'lootly! Most people don't know the difference between 'profit' and 'profit margin,' and just get their panties all in a wad when they read of "high profits." But the whiners and snivelers have made 'profit' a dirty word. I LOVE the profits that the wascally 'big oil' companies are making as it benefits my investment account, as well as that of millions of other investors.

[melody1181]

When it comes to over profits oil companies are not bad...compaired to the pharmaceutical companies.

[darrels joy]

and their tax on that profit is only 49%

[revwardoc]

Exxon has said that they use the profits for R&D. In truth they use less than 10%. The rest goes into share buybacks and dividends.

[reconeil]

I've got nothing against profits,...and even by Oil's Fat Cats.

Still,...I'll never understand why The American People & American Economy don't
ALSO PROFIT & BENEFIT from "OUR" very own VAST Natural Resources of Crude Oil & Coal?

Most citizens of OPEC and other Oil EXPORTING Nations of The East & their economies
BENEFIT GREATLY from their natural resources of Crude Oil. Why can't The American
Citizenry & Economy similarly BENEFIT from theirs just as well,...instead of being severely
punished & victimized by Oil???

As is currently in America, while majority of The People & Economy are being daily
royally screwed-over, the ONLY ONES ACTUALLY BENEFITTING GREATLY from obviously
Outrageous Oil Profiteering are The Oil Companies, Shareholders, Lobbyists & Federal &
State Governments. Most all others and/or about 290 MILLION Americans & most entire
Private Sector Economy (Oil & Petrochemical Industries excluded),.................
just remain quite lordly forced/dictated to Daily Accept the Grandiose UNacceptable RIP-OFF.

To sort of paraphrase Old Abe: "You can't (SCREW-OVER) All The People All The Time",......
FOREVER!!! Or,...can you?

Granted, "We The (Schnooks)" similarly get shafted also in collusion with Our Government
by The Pharmaceutical Industry, while The U.S. Taxpayer already picks up much of the cost
for R&D,...and much like paying for thermo-imaging from satelites for new oil discoveries.
But,...SO WHAT? There too The American People need some Representation, ALSO.

Neil