Exxon Sets Record on Annual Profits
02-01-07, 02:05 PM
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Exxon Sets Record on Annual Profits
https://www.nytimes.com/2007/02/01/bu...=1327986000&en
February 1, 2007
Exxon Sets Record on Annual Profits
By CLIFFORD KRAUSS
HOUSTON, Feb. 1 — Exxon Mobil reported a record annual profit on Thursday but a modest decline in fourth-quarter earnings because of falling oil and gas prices. Meanwhile, its competitor Royal Dutch Shell reported an unexpected rise in quarterly earnings, a sign that the industry is still going strong.
The results followed reports by other energy companies in recent days that said easing commodity prices, declining refining and chemical earnings, rising steel and labor costs and higher royalties and taxes had hurt their bottom lines somewhat.
But the shortfalls at all the major companies, including Occidental, ConocoPhillips and Hess, have come after record or near-record previous quarters. With oil and gas prices on the upswing again in recent days, few analysts think the bonanza of profits that energy companies have enjoyed in recent years will end anytime soon.
Exxon, the world’s largest publicly traded oil company, reported profit of $10.3 billion in the fourth quarter. That represented a decline of 4.3 percent from its record profit in the fourth quarter of 2005 and was Exxon’s first quarterly decline in almost three years.
But for the year, Exxon’s profit rose 9 percent from 2005 results to a record of $39.5 billion, the largest annual profit ever for an American company.
Oil prices for the quarter ranged between $55 and $63 a barrel, averaging just shy of $60. That represented a 15 percent decline from the third quarter and was less than 1 percent lower than the fourth quarter of 2005.
Shell reported a profit $5.28 billion, a 21 percent rise from the fourth quarter of 2005. Shell’s annual income of $25.4 billion was also a record.
Production rose 4.1 percent to 3.65 million barrels of oil a day in the fourth quarter.
Oil prices in 2006 averaged $66, $10 higher than the year before, according to a recent Citigroup report on the energy industry. Oil prices reached a high of $77 in July, but they have declined to the low-to-mid $50s due to generally warm weather and the perception of easing tensions in much of Middle East since then.
Natural gas prices declined through much of the year from their peak following the exceptionally active hurricane season in 2005. But they have remained historically high despite the unseasonably warm winter in much of the country.
Henry Hub natural gas prices averaged $6.3 per million cubic feet in the latest quarter, down 46 percent from the fourth quarter in 2005.
February 1, 2007
Exxon Sets Record on Annual Profits
By CLIFFORD KRAUSS
HOUSTON, Feb. 1 — Exxon Mobil reported a record annual profit on Thursday but a modest decline in fourth-quarter earnings because of falling oil and gas prices. Meanwhile, its competitor Royal Dutch Shell reported an unexpected rise in quarterly earnings, a sign that the industry is still going strong.
The results followed reports by other energy companies in recent days that said easing commodity prices, declining refining and chemical earnings, rising steel and labor costs and higher royalties and taxes had hurt their bottom lines somewhat.
But the shortfalls at all the major companies, including Occidental, ConocoPhillips and Hess, have come after record or near-record previous quarters. With oil and gas prices on the upswing again in recent days, few analysts think the bonanza of profits that energy companies have enjoyed in recent years will end anytime soon.
Exxon, the world’s largest publicly traded oil company, reported profit of $10.3 billion in the fourth quarter. That represented a decline of 4.3 percent from its record profit in the fourth quarter of 2005 and was Exxon’s first quarterly decline in almost three years.
But for the year, Exxon’s profit rose 9 percent from 2005 results to a record of $39.5 billion, the largest annual profit ever for an American company.
Oil prices for the quarter ranged between $55 and $63 a barrel, averaging just shy of $60. That represented a 15 percent decline from the third quarter and was less than 1 percent lower than the fourth quarter of 2005.
Shell reported a profit $5.28 billion, a 21 percent rise from the fourth quarter of 2005. Shell’s annual income of $25.4 billion was also a record.
Production rose 4.1 percent to 3.65 million barrels of oil a day in the fourth quarter.
Oil prices in 2006 averaged $66, $10 higher than the year before, according to a recent Citigroup report on the energy industry. Oil prices reached a high of $77 in July, but they have declined to the low-to-mid $50s due to generally warm weather and the perception of easing tensions in much of Middle East since then.
Natural gas prices declined through much of the year from their peak following the exceptionally active hurricane season in 2005. But they have remained historically high despite the unseasonably warm winter in much of the country.
Henry Hub natural gas prices averaged $6.3 per million cubic feet in the latest quarter, down 46 percent from the fourth quarter in 2005.
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Last edited by georgiaboy; 02-01-07 at 02:16 PM.
02-01-07, 02:29 PM
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Capitalism, ain't it great !!
I'm sure there are a lot of happy stockholders and employees.
I'm sure there are a lot of happy stockholders and employees.
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This is Africa, 1943. War spits out its violence overhead and the sandy graveyard swallows it up. Her name is King Nine, B-25, medium bomber, Twelfth Air Force. On a hot, still morning she took off from Tunisia to bomb the southern tip of Italy. An errant piece of flak tore a hole in a wing tank and, like a wounded bird, this is where she landed, not to return on this day, or any other day.
02-01-07, 03:17 PM
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Originally Posted by dobber
Capitalism, ain't it great !!
I'm sure there are a lot of happy stockholders and employees.
I'm sure there are a lot of happy stockholders and employees.
I think they need to repeal the tax break oil companies got when oil was at 10 bucks. since we are giving subsidies when oil is low we might as well tax them more when it's higher. they shouldn't call it windfall tax... sounds so petty.. call it justified reimburstment for the subsidies they recieved for the last 20 years.
02-01-07, 03:48 PM
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Yet they'll still tell you that most of that profit went back into the company and refineries. (Read: company and refineries = executives and shareholders pockets)
Every year they make record earnings, yet the price of gas still rises. (hence, the record earnings...)
Man, I need to invest $$ in Exxon-Mobil stock!
Every year they make record earnings, yet the price of gas still rises. (hence, the record earnings...)
Man, I need to invest $$ in Exxon-Mobil stock!
02-01-07, 03:55 PM
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Originally Posted by dobber
Capitalism, ain't it great !!
I'm sure there are a lot of happy stockholders and employees.
I'm sure there are a lot of happy stockholders and employees.
Great indeed, and this at a time when oil prices collapsed in the last few months after every economic luddite said they would be $90 a barrel by winter. Just imagine the whining and complaining we would hear from social service government bureaucracies if their sources of funding were slashed that much.
Similarly, all the luddites who suggested oil and gas prices would 'soar after the election went by' have been proven wrong as well.
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02-01-07, 03:56 PM
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They aren't stupid, the government has been giving them massive tax breaks for years IIRC the current numbers exceed $10 billion, and they aren't putting crap back into the infrastructure, why do you think there was a problem with the pipeline in Alaska? They all but admitted that they hadn't been doing PM on it. They know peak oil is coming and they are trying to get all they can while they can.
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02-01-07, 04:01 PM
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Originally Posted by Gee3
Yet they'll still tell you that most of that profit went back into the company and refineries. (Read: company and refineries = executives and shareholders pockets)
Every year they make record earnings, yet the price of gas still rises. (hence, the record earnings...)
Man, I need to invest $$ in Exxon-Mobil stock!
Every year they make record earnings, yet the price of gas still rises. (hence, the record earnings...)
Man, I need to invest $$ in Exxon-Mobil stock!
