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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

 

It is all a mater of scale, I too am dissapointed with the one sided reporting, they probably pay more taxes than any other company as well.

So Senator Obama says that if elected president he will tax the big oil companies on their windfall profits. Let's pretend he could actually get such a bill through Congress whose memebers are awash in Big Oil contributions. How will this windfall tax be used? Certainly not to lower the price of fuel. More likely it will be used to expand the size of the government because after all, we certainly need a bigger government to administrate all of the new Obama social programs that will rob the rich and pay the poor.

Here's a better idea. Tax those windfall profits to fund the build-out of government-owned (but privately managed) refineries and put the profits from them right back into highways and bridges.

And they paid how much in taxes on these profits?  What was that number again?

Please tell the whole story, not just this one quick shot that is basically meanless.

I bet Bush and Cheaney are excited. I wonder how much got put it their pockets. The need to start showing skin flicks at the gas pumps, so we can watch someone else gettin f----d at the same time we are getting f----d!!!!!

People only care when others are doing better than they are.  Those who are the maddest about others making more money are the people who are the most self centered people on the planet.

Fairness is subjective.  Fairness can't be legislated.  In fact there is no such thing as fair because what will be fair to one person or a group of people somewhere you will find other people who say it isn't fair.

It's time to pull the government subsidies to the companies that make this amount of profit. After all...the bankers & Wall Street now need the charity.(Not)  - Redirect the funds to the smaller companies that are doing real alternative energy development.  

No matter how big the company, a BILLION dollars every week in PURE profit?  I'll be sure to cry myself to sleep at night since these CEO's aren't able to pay for their Mansion AND their Yacht, diamonds for their wives AND mistresses!  Give me a break!?!!!  BTW --PURE profit, means after overhead, please don't get it mixed up that they're making all this money, but then paying it back out.  Profit is profit, and these companies make several millions of dollars of profit per employee, whereas the other corporate giants (Wal-Mart) measure their profit per emplyoee in the low thousands.....not tens of thousands.....but thousands.  They may offer alot of jobs to thousands of Americans, but they also took alot of $ from millions of Americans when gas was hovering around $4!!

Yeah lots of profit....But look at the taxes they paid!   Try reading the entire story.

gas should be 1.00 a gallon for the next 10 years and they would still have profit- they should be in prison-no joke-prison!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Someone wanted to know how much they paid in taxes. I'd be more interested if how much taxes the corporation and other corps as well were forgiven during the Bush years. You know, a year ago in Feb when Bush had given everyone with money in overseas banks a flat 15% tax rate to bring the cash back to America. My favorite Republican chant is the demand for more off-shore drilling areas. The last off-shore well the "oil bidness" built was in the 70's. They aren't going to do it. I say use it or lose it. You want more oil production. Sell the leases to Japan or Korea or BP. I guarantee they'll make money on it and we'll buy the oil from them. But even that would be just a temporary fix.We have to get away from oil consumption. Most of the industrial world is way ahead of us on actual wind/solar power development. Bush "was" an oil man (that feels good to say that) and anything relating to competition with the oil companies in America has been cut off at the knees for the last 8 years. It's just a matter of days there GOP and you can join the ranks of the unemployed!

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