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Exxon breaks US profit record

Posted Oct 30 2008, 11:45 AM by Kim Peterson
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Unbelievable. Exxon Mobil just reported the biggest profit ever for a U.S. company. It raked in a billion dollars a week in pure profit in the July-September period, 58% more than a year ago.

I don't know whether to admire the accomplishment or hurl.

Crude prices hit an all-time high during the quarter, which helped boost Exxon's profit even though its production actually fell 8% from last year. With that kind of demand, Exxon execs are shrugging off the economic storm felling other companies right now.

"Despite recent volatility in the financial, commodity and credit markets, the fundamentals of Exxon Mobil's business remain strong," executive David Rosenthal said on a call with analysts.

I'll say. The company is printing money, holding the record for the top 10 most-profitable quarters in U.S. corporate history (and the largest annual profit.) Exxon shares are down nearly 3% today after the earnings report to $72.69.

Still, Exxon's next quarter probably won't be so rosy. Crude prices have plunged from all-time highs to around $65 a barrel. Demand for fuel has slowed way down. And production levels for Exxon continue to drop, while the company spends tens of millions of dollars a day to drill wells and build plants.

The party might be over, even for Exxon.

Update: Hoo, boy! Some commenters are up in arms because I didn't mention the taxes Exxon paid during the quarter. Keep in mind that taxes paid aren't generally written about in earnings coverage, mainly because investors don't really care, especially compared with other line items in an earnings release.

But, because you asked for it, here it is. Exxon paid $11.3 billion in income taxes in the quarter, bringing total taxes paid for the first nine months of the year to $31.2 billion. It's a staggering number, just like all the other numbers in the quarterly report. Exxon's income tax rate has increased to 48% from 45%.

Related reading:

Exxon: The world's 18th-largest economy?

Korea's intense hunt for oil fuels price hikes

Where to put money: The 'super safe' stocks

Oil now lost 23% from July peak

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Comments

 

exxon mobil likely paid upward of 9 billion in taxes this quarter...oil is not a cheap business. their operating expenses are pretty steep...anyhow having exxon mobil stock i say woohoo!!! a lot of people out there have money in exxon, through retirement funds etc, some may not know this. maybe we should by more stocks/some stock and make some money off this...i bet we'd feel better instantly when we get a cut of those profits...if obama raises taxes, we get screwed, no reputable business will let taxes cut into the bottom line...that gets passed on to the consumer...but since i have exxon stock...

gettin paid (Posted 10.30.08 2:14 PM) Report Abuse

A barrel of crude is approximately $65. Why are we on average paying $2.75 a gallon. Excess profits, screwing the public....as Palin would say, "I betcha".

VOTE DEMOCRART.....

gordon (Posted 10.30.08 2:14 PM) Report Abuse

Maybe I need to go back to school? For some reason my math does not work like it used to? Does not compute! Looks like they are making more now than when it was at its highest.

Was $145.00 a barrell = $4.17 per gallon (regular)

Now $65.00 a barrell = $2.59 per gallon (regular)

discouraged citizen (Posted 10.30.08 2:16 PM) Report Abuse

14.8 Billion "Reported"  how much unreported ?

john (Posted 10.30.08 2:16 PM) Report Abuse

Profits are one thing,  but obscene profits by any company on the backs of its customers during a dangerous economy is pathetic. And so are our "leaders" for allowing this and those corportate execs that try and rationalize and justify that this is appropriate. I, for one, am adding E-M to my "boycott list." Suggest everone else who agrees with me do the same.

PS: yes, let's applaud them for "all the taxes" they paid... maybe this is why the government runs with their collective tails between their legs. Exxon... sounds like Enron.

Andy (Posted 10.30.08 2:17 PM) Report Abuse

Wouldn't it be nice if the oil companies gave as little as .25 per gallon to education.  Here in the state of California, they are talking cutting the education budget even more.  Instead of bragging about their profit, why not give some back to where it's much needed.   We don't need energy incentives to build schools we need the money to educate our children and it needs to be restricted from Government.  HELP EDUCATION!

Profit into Education Budget (Posted 10.30.08 2:18 PM) Report Abuse

I find this to hard to swallow, how can they make such a big profit if it cost them more to buy OIL and demand is down. The price of Gas this summer is one of the reasons why our economy is doing bad. This is why I am Voting for Obama, so that these guys can pay more Taxes, and stop getting Tax breaks. Share there wealth with us middle guys.  I can predict that when Obama is president you will not see this again, why because the price of OIL will go down. Due to the lack of demand, from alternative fuel!

Michael (Posted 10.30.08 2:19 PM) Report Abuse

Oh yeah Jay. Voting for Obama with no experience in anything but running his mouth will help.Maybe he has some relatives overseas that can help :>

MJ (Posted 10.30.08 2:20 PM) Report Abuse

it just goes to show you that they have been bending us over a "barrell" for the past year and a half!!!!!!!!!

FEDUP (Posted 10.30.08 2:22 PM) Report Abuse

Hey, The Truth. I have an idea, why don't we just direct deposit our paycheck into Exxon's and the like's account. Nothing but a bunch of suck cockers.

Fed Up (Posted 10.30.08 2:23 PM) Report Abuse

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