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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

Comments

 

i find it very interesting that people complain about fuel pricing when you probably see the  same people doing 90+ miles hour in there biggest baddest pickup truck or suv with massive engines doing 10-12 miles per gallon on the highway.the general public is to blame for the hurt in the wallet with the american car culture we didnt learn at all from the 80's did we

And remember this is PURE profit, that means after all the CEO bonuses,payrol,l taxes etc... this company made almost $15 bil in 1 quarter. Least now I know where those $100 fill-ups I had to shell out over the summer went. Maybe Chavez has the right idea and we should nationalize these b*stards in the US as well

How in this day and age with all the uncertainty in the world can companies like this be allowed to get away with this thievery?  And to make it worse our government sits back and does nothing about it.  Maybe when our President the Oil Baron is out of office we can seriously look into this further.  The news informs us every day that these profits and high prices are due to supply and demand and cost per barrell.  Lowest costs in a long while, continued high prices at the pumps and record profits add up to greed and legal thievery in my eyes.

Quit bitching and just quit driving!!! Or shut UP already!!  If you drive a gas burnig vehicle they are providing you a service, if you don't like the service don't use it.  If you use they deserve to make a profit.  Obama has turned making a profit into the evil monster of capitalism.  

Lets get a new tshirt "Walking for Obama"  Screwing the big evil oil monster.  

Personally I prefer to drive.

One must remember that certain republican policitcians have ties to big oil, which is why a couple of years ago, when Exxon 1st posted huge profits, and Congress was looking into price gouging, the entire matter just evaporated.  We still paid at the pump, but you did not hear anymore about the excess charging. Consider that the price of a barrel of oil increases from $70 to $130, or about $1.00 per gallon of crude, but gasoline prices increased from $2.50 to over $4.00, or about $.50 per gallon too much - pure profit to big oil!  Frankly, someone should have their hide for cheating the buying public.  

This is a very slanted, one-sided story.  An example of left-wing biased journalism.  Take into account all the bad years, what the actual profit was, how much was spent on drilling,how much was paid in taxes, etc.  Additionally, what company will stay in business without striving for profit?

Capitalism in America is what made this country great.  Elect Obama and you've got socialism and no reason for people to want to own their own business-he'll tax them to death.  Business provides jobs.  

There's no doubt, 8% profit is not a spectacular number, it's respectable, but not mind-blowing. But let's think about the product. It's a natural resource that gets refined to a usable product. It's not like there is some huge research and development project going on all the time to make gasoline bigger and better that has to get its expenses covered by the end users. It's the same process over and over...the same process that costed the end users $0.89 only 10-15 years ago. What's the difference of then and today? Higher wages? Just say the average wage of an Exxon employee rose by $5.00 in those 15 years...what's that spread over a gallon of gasonline?...$3.00?!?!? Are you kidding me?

The latest and greatest computers are expensive because they have a lot of R&D invested in them. But after a few months, the price of that same computer drops down dramatically...largely due to the fact that another computer comes out that is greater than that one.

If there becomes a substitute or alternative fuel that can co-exist with gasoline and diesel as a way to power our society, I strongly believe that we will see the price of a gallon of gasoline be drastically reduced. And it's not that the oil will all of a sudden be easier to drill out of the earth, but that the demand isn't there for gasoline anymore...therefore the oil companies, whether it be Exxon, Citgo, whoever, will have to forego some profit in order to get rid of their product.

Why do we see these advertisements on television from BP and Exxon discussing the global energy crisis and using 'human energy' to solve the problems. The oil companies see that the people of the world are about to find alternatives to the traditional oil, and these companies are wanting to make sure they're there and 'involved' in the effort to gain in the profit sharing. It's a brilliant attempt to be the CAUSE and the FIXER of the problem that THEY created and still stay in good standing in the minds of the end users. A great public relations attempt to say the least.

The TRUTH is that EXXXON has mucked up the environment, our air, our ground water, our oceans. They have Mucked UP the living things of this would, by buying up clean alternative energy patents and killing them. They have MUCKED OVER the people of the world, economically by way of exploitation. They don't care about  share holders, the Americans, the fisherman or any other living soul. They worship PURE GREED.They produce misinformation and have held the world hostage. Those Texan Fat Cats at the top are in bed with the terrorists!

I USE to work for ExxonMobil -near 20 years. They sent and are continuing to send US jobs to Argentina, Guatumala and Turkey where payscales are near 1/2 what U S Jobs are.

This is also the reason they have a huge profit.

I was given 6 months severance and no health insurance.

I was grateful for the 6 months but with these kinds of profits, I believe a little more support for being let go strictly for the bottom line wouldn't have hurt ExxonMobil at all.

Yes. Companys are in it to make a profit but tax the heck outta those who are US based and send jobs overseas at the rate they are.

So why is the government still paying subsidies to these oil companies?  Talk about socialism!!!  Another Republican give-away to the fat cats.  I guess it's only socialism if government money goes to the middle class.  

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