EXXON record profits...

Discussion in 'Campfire' started by MichaelT., Feb 1, 2008.

  1. MichaelT.

    MichaelT. Guest

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    Exxon Mobil posts record profits

    By JOHN PORRETTO, AP Business Writer

    41 minutes ago



    HOUSTON - Exxon Mobil Corp. on Friday posted the largest annual profit by a U.S. company — $40.6 billion :mad: — as the world's largest publicly traded oil company benefited from historic crude prices at year's end.

    Exxon also set a U.S. record for the biggest quarterly profit, posting net income of $11.7 billion for the final three months of 2007, besting its own mark of $10.71 billion in the fourth quarter of 2005.

    The previous record for annual profit was $39.5 billion, which Exxon Mobil reported for 2006.

    The eye-popping results weren't a surprise given record prices for a barrel of oil at the end of 2007. For much of the fourth quarter, they hovered around $90 a barrel, more than 50 percent higher than a year ago.

    Crude prices reached an all-time trading high of $100.09 on Jan. 3 but have fallen about 10 percent since.

    The record profit for the October-December period amounted to $2.13 a share versus $1.76 a share in 2006. Year-ago net income was $10.25 billion.

    Also extraordinary was Exxon Mobil's revenue, which rose 30 percent in the fourth quarter to $116.6 billion from $90 billion a year ago.

    For the year, sales rose to $404.5 billion — the most ever for the Irving, Texas-based company — from the $377.64 billion it posted in 2006.

    In a statement, Exxon Mobil Chairman Rex Tillerson said the company continued to meet the world's energy needs through its "globally diverse resource base."

    "Our long-term investment program, in projects often far from major consuming nations, continued to provide resources essential to the increasingly interdependent global energy supply network," Tillerson said.

    Exxon Mobil produces about 3 percent of the world's oil.

    Its shares rose $1.45, or 1.7 percent, to $87.85 in premarket trading.
    :censored: :censored: :censored: :censored:
     
  2. John Stiles

    John Stiles Ultimate Member 2007 Team Turkey Contest Winner

    Better shake the dust of that town off yer feet, Mike, and never go back!:eek: :wink:
     

  3. KBJ

    KBJ Well-Known Member

    Thats around 1300 dollars a second!!!!:eek: :eek: :eek:
     
  4. jerry dean

    jerry dean Guest

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    How much profit do you think Exxon should make?:confused:
     
  5. rjet

    rjet Well-Known Member

    Profit Margins:

    XOM 11.59%
    Csco 21.85%
    msft 29.29%
    Rimm 21.39%
    wmt 3.39%

    You cant look at dollar amounts and get the real story.
     
  6. jerry dean

    jerry dean Guest

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    Exactally correct. It's all relative. Just bigger numbers than most people can understand/comprehend. If my guys were producing only 2 or 3 or 5 precent, they wouldn't be my guys very long. The same with your boss and your boss and EVERYBODY'S boss. We're in a Free Market economy(thank God). If you don't like the producer or supplier or the price or the service, don't buy from them, but don't knock a man for making a profit. Everybody has the EXACT same oppurtunity to make a bunch of $$$, some just chose not to make that kind of sacrifice or commitment.
     
  7. ECHIV

    ECHIV Guest

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    11.9% x 3.00 a gallon (It's actually less than that but we'll use a round number) = 35.7 cents per gallon. When the price per gallon goes down, the profit goes down and the percentage (or Profit Margin) goes down with it. What doesn;t go down is the taxes paid on the gasolin. Check the sticker on the pump next time you buy gas. The federal Government makes more at the pump than Exxon Mobil. The Feds also get taxes everytime the crude oil changes hands. A more accurate # is probably 50% of the price at the pump is TAXES.

    Plus, what is wrong with profit. Labor gets wages, Capital gets profits. If there is no profit in an industry, the money goes away. When the money goes away, the industry (Petroleum production) and it's products (Gasoline among others) goes away or gets harder to find.

    I have seen Public Housing, public retirement and Public Schools. Do we really want to give the governement control over anything else? Much less what goes into fueling our economy and way of life?
     
  8. popgun

    popgun Well-Known Member

    When someone buys a truck load of plywood and hauls it down to the Florida coast after a hurricane, and attempts to sell it for $50. per sheet it is called price gouging and the culprits are thrown in the pokey.
    They were taking advantage of the free market, but also taking advantage of the "need" of the hurricane victims.

    If we are in a crunch for fuel, aren't we being gouged by the oil companies in the same way, just so that their profits will be higher?
    Why should any oil company have "profits" that are that high?
    If their production cost are high, refinery cost high, labor cost high, transportation cost high; Wouldn't that eat into the profits?
    NO.. because they keep passing all those cost to the consumer to make more profits than they had last year, the year before that, and the year before that.
    Have these oil companies passed that profit on to the stockholders in the form of dividends, or stock splits?
    The answer is NO, or it wouldn't be called profit.
    Are these profits used to build pipelines, refineries, or to drill new wells or for oil exploration?
    NO again, or this would not be called profit.

    :smack: ....popgun
     
  9. jerry dean

    jerry dean Guest

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    Not a thing wrong with profit. That's one of the things that make this Country so great. Exxon paid $363.90 BILLION with a B on employee payroll, employee retirement, employee benefits, exploration, research, taxes, ect..., with a net return of 9.97%. Sounds like sound investing to me.

    Until the day that "I" can get, produce, and refine something to put into my pick-up and make it run to keep me from walking to my office every morning, more power to ya Exxon. Actually, they got conversion kits that will run on used cooking oil. I'm just not committed enough to make that sacrifice yet. But I could, and you could if you wanted to. You'd never have to buy a gallon of gasoline again.

    Same for chickens, soap, toilet paper, whiskey, steel, wood or any other consumer item I use.
     
  10. Down on the White

    Down on the White Well-Known Member




    The goverment has more control over this than a body thinks. If that wasn't so we be getting our crude from the north slope instead of a rag head.:censored:
     
  11. jerry dean

    jerry dean Guest

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    popgun,

    I don't have a clue who gives/gave you a paycheck every week, but I can assure you, that person doesn't feel the same as you do. And you better be glad that person doesn't/didn't.:smack:

    9.97% ain't gouging. Expecially for an unrenewable product. You can grow another tree, but we ain't gonna be around long enough to see anymore oil made. $50 for a 6$ sheet of wood is gouging. Big difference.
     
  12. ECHIV

    ECHIV Guest

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    Popgun,

    Profits are what pay dividends and drive up the price of a share of stock. Of course they get paid to the people who are shareholders in the company. They also get reinvested in the labor side of the equation through Profit-Sharing plans and Employee stock options, etc. The great thing about the industry is it's profitability. If people didn;t make money in the industry they wouldn;t put labor and capital to work in the industry.

    If the price of Gasoline is what is annoying to you (I know I think it is too high) then look at the supply part of the equation. There are more proven reserves of petroleum in the world than ever before. The price of Crude makes more ways to extract the crude profitable than ever before. The problem is our Federal Government (You may notice those guys are not high on my list of favorite people) will not allow more crude to be refined so there is no reason to get it. Refineries are necessary so we can get the products we want out of the crude. Not Just Gasoline but Propane, Kerosene, Plastics, Oils all sorts of things.

    It is ridiculous for the government to artificially creat an environment where prices are kept at ridiculous prices then complain and attack the companyies that are meeting America's demand for oil. You cannot be as heavily involved in the market as the Governemtn is and claim to be a victim or innocent. To top all of this hypocrisy off, Hillary wants to "Take those profits" (Quotes because they are her actual words) and use them for other purposes.

    Remember 1/2 of the price at the pump is taxes! They are already taking too much before we ever get to use the products being supplied.
     
  13. Gruntcall

    Gruntcall Well-Known Member

    And oil companys don't set the price of oil. They have to buy it, the same as you have to buy their refined product.:smack:
     
  14. TheBattman

    TheBattman Select Member<br>2010-11 Deer Hunting Contest Winn

    Let us look at it from a bit different perspective.

    If you are in business, what profit margin do you expect? I know it depends on the type of business, but let us just take an guess...


    OK - now let us look at Exxon Mobil's numbers:

    They had total gross sales of $404.5 billion for the year, and the net income (profit) of $40.6 billion.

    By my poor math skills, I see that is barely over a 10% margin or profit. In most industries, that would not keep you in business long. But the number sure looks big - because they are such a huge business.

    And no, I don't work for the oil industry, and don't particularly like them. But we have to be honest. It comes down to the cost of the raw materials (oil) and taxes. You want lower gasoline prices - contact your Senators and Representatives about cutting the fuel taxes. In Arkansas, they amount to somewhear around 40 cents on every gallon by the time you figure fed and state.

    The next step is to hold those who restrict the flow of oil (terrorists, despot dictators like Hugo Chavez and the Iranian mullahs), and also lay some blame at the feet of the insanely growing demand from China (hmmm... wonder where the money to buy all that oil and gas comes from... oh yea - from all the $billions we send them to make almost all our stuff....)
     
  15. Hudge

    Hudge Well-Known Member

    If you want to really get angry about profits from oil, look up how much proift the middle eastern country's make. I saw an articel today they gave the breakeven point for 1 barrel of oil, and then the profit margin if the barrel sold at $100. For oil from Kuwait, it was a 488% profit.
     
  16. ECHIV

    ECHIV Guest

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    If I remember right, the majority (Approx. 70%) of our imported oil comes from friends and neighbors. Mexico, Canada and the like. There's some fella's on here know mre about his than me, I'm sure. Greater demand for the refined (Value Added) end product increases price. We have not built a new refinery in decades. Crude is only valuable because of what we make from it and we can't anywhere near keep up with the demand for it that we have or china, or India, or any other number of other growing markets in the former third world. I don't know and can't speak for you other guys but I am putting my retirement $$$ in energy and emerging markets. That is where the profit and growth of this economy will be in the foreseeable future.
     
  17. John Stiles

    John Stiles Ultimate Member 2007 Team Turkey Contest Winner

    I don't have any friends in the oil business...If I do...not any more!:biggrin:
     
  18. Bruin

    Bruin Well-Known Member

    When I was 20 years old I made $10,000 per year, gas was $1.00 per Gallon, Cokes were .25 cents, Skoal was .75 cents per can.

    Now I am 42 and I make $40,000 per year and gas is $3.00 per gallon, and Cokes are $1.50, and Skoal is $5.00 per can!!:eek:

    I think gas is cheap compared to Cokes and Skoal. But nobody complains about the price of Cokes or Skoal.

    Do yourself a favor and turn off CNN.

    Actually think for yourself. You will find that the world is not so bad after all.

    The main thing is. TURN OFF CNN!!!!:smack:
     
  19. rjet

    rjet Well-Known Member

    That is funny bruin. Ya hear people complainin about the price of a gallon of gas while sippin on a $1 bottle of water.:smack:
     
  20. stealthycat

    stealthycat Elite Member<br>2015-16 Bow Hunting Contest Winner

    I'm a bit torn on this.

    One one hand, those huge profits seem to be coming at my expense and everyone elses who absolutely HAVE to have gasoline. Its one of the very, very few neccessities of life.

    One the other hand realize this ...

    One barrel contains 42 gallons of crude oil.

    Product Percent of Total
    Finished Motor Gasoline 51.4%
    Distillate Fuel Oil 15.3%
    Jet Fuel 12.6%
    Still Gas 5.4%
    Marketable Coke 5.0%
    Residual Fuel Oil 3.3%
    Liquefied Refinery Gas 2.8%
    Asphalt and Road Oil 1.9%
    Other Refined Products 1.5%
    Lubricants 0.9%



    When you figure how much the refining process costs, shipping the oil, distributing it etc ..... how much profit is there in that ? I mean really ?



    I'm wondering if Exxon isn't making thier money not in selling the refined products to us, but in the exploration of fields, drillings, holdings, futures etc ? If thats the case, thats almost acceptable because they're capitalizing on a good market is all. Of course its also a conflict, controlling the very markets you make your profits on from end to end.