hey_moe
October 31st, 2008, 13:27
HOUSTON - Exxon Mobil Corp. (http://www.dailypress.com/topic/economy-business-finance/exxon-mobil-corporation-ORCRP005510.topic), the world's largest publicly traded oil company, reported on Thursday that it earned $14.83 billion in the third quarter. That shattered its own record for the biggest profit from operations by a U.S. corporation.
Yet, numbers contained within the company's most recent financial report revealed production numbers that continue to sag.
Its shares closed at $75.05 on Thursday, up 40 cents.
The Irving, Texas (http://www.dailypress.com/topic/us/texas-PLGEO100104600000000.topic)-based company has reported unprecedented back-to-back quarters, the end of the most recent coinciding with a rapid plunge in crude prices.
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<!-- END rail -->Oil prices have tumbled from summer highs.
Benchmark crude prices fell $2.91 to $64.59 on Thursday on the New York Mercantile Exchange (http://www.dailypress.com/topic/economy-business-finance/finance/new-york-mercantile-exchange-ORCRP001702.topic).
That's about 56 percent off record highs in July.
Exxon said net income jumped nearly 58 percent to $2.86 a share in the July-September period.
That compares with $9.41 billion, or $1.70 a share, a year ago.
The previous record for U.S. corporate profit was set in the second quarter, when Exxon Mobil earned $11.68 billion.
Third-quarter revenue rose 35 percent to $137.7 billion.
On average, analysts expected the company to earn $2.39 a share in the latest quarter on revenue of $131.4 billion.
Exxon Mobil's results got a boost of $1.62 billion in the most-recent quarter from the sale of a natural gas transportation business in Germany.
It also took a special after-tax charge of $170 million for a punitive-damages award related to the 1989 Exxon Valdez oil spill.
Excluding those items, third-quarter earnings amounted to $13.38 billion — nearly 15 percent above its previous profit record from the second quarter.
As expected, Exxon Mobil reaped huge earnings from its exploration and production — or "upstream" — arm, where net income rose 48 percent to $9.35 billion.
Higher oil and natural gas prices propelled results, even though production was down from the third quarter a year ago.
Oil producers are coming off a quarter during which crude prices reached a record high of $147.27 — and their profits have reflected it.
Royal Dutch Shell PLC (http://www.dailypress.com/topic/economy-business-finance/royal-dutch-shell-plc-ORCRP013311.topic), Europe's largest oil company, said Thursday that its third-quarter net profit jumped 22 percent from a year ago, also despite falling production.
The global economic malaise has raised questions about energy demand at least into 2009.
Yet, numbers contained within the company's most recent financial report revealed production numbers that continue to sag.
Its shares closed at $75.05 on Thursday, up 40 cents.
The Irving, Texas (http://www.dailypress.com/topic/us/texas-PLGEO100104600000000.topic)-based company has reported unprecedented back-to-back quarters, the end of the most recent coinciding with a rapid plunge in crude prices.
<!-- google ads --><IFRAME marginWidth=0 marginHeight=0 src="/common/includes/google-adsense-content.html?client=ca-tribune_news3_html&channel_content=dailypress_business_fallback&channel_section=dailypress_section&type=wide&page_url=http://www.dailypress.com/business/dp-biz_mmexxon_1031oct31,0,7588696,print.story" frameBorder=0 width=290 scrolling=no height=12 SuperAdBlocker_Frame="0"></IFRAME><!-- END google ads -->
<!-- END rail -->Oil prices have tumbled from summer highs.
Benchmark crude prices fell $2.91 to $64.59 on Thursday on the New York Mercantile Exchange (http://www.dailypress.com/topic/economy-business-finance/finance/new-york-mercantile-exchange-ORCRP001702.topic).
That's about 56 percent off record highs in July.
Exxon said net income jumped nearly 58 percent to $2.86 a share in the July-September period.
That compares with $9.41 billion, or $1.70 a share, a year ago.
The previous record for U.S. corporate profit was set in the second quarter, when Exxon Mobil earned $11.68 billion.
Third-quarter revenue rose 35 percent to $137.7 billion.
On average, analysts expected the company to earn $2.39 a share in the latest quarter on revenue of $131.4 billion.
Exxon Mobil's results got a boost of $1.62 billion in the most-recent quarter from the sale of a natural gas transportation business in Germany.
It also took a special after-tax charge of $170 million for a punitive-damages award related to the 1989 Exxon Valdez oil spill.
Excluding those items, third-quarter earnings amounted to $13.38 billion — nearly 15 percent above its previous profit record from the second quarter.
As expected, Exxon Mobil reaped huge earnings from its exploration and production — or "upstream" — arm, where net income rose 48 percent to $9.35 billion.
Higher oil and natural gas prices propelled results, even though production was down from the third quarter a year ago.
Oil producers are coming off a quarter during which crude prices reached a record high of $147.27 — and their profits have reflected it.
Royal Dutch Shell PLC (http://www.dailypress.com/topic/economy-business-finance/royal-dutch-shell-plc-ORCRP013311.topic), Europe's largest oil company, said Thursday that its third-quarter net profit jumped 22 percent from a year ago, also despite falling production.
The global economic malaise has raised questions about energy demand at least into 2009.