Exxon profits surge to new record

[Rik Meleet]

Exxon profits surge to new record

This would infuriate me if I was an American. Having record gas prices in the autumn and seeing it all end up in the pockets of Oil-Companies, their managers and their stockholders. Sort of "Extra gas tax".
God bless (corporate) America.

Exxon profits surge to new record

Surging profits topped off a record year for Exxon
Surging oil and gas prices have helped Exxon Mobil to unveil the highest quarterly profits reported by a publicly-traded US company.

Fourth-quarter earnings jumped to $10.7bn (£6bn) from $8.4bn in the same period last year.

The results drove Exxon's annual profit to $36.13bn - 42% up on last year.

In the past year, oil prices have soared on concerns about supplies prompted by tensions in oil producing countries and hurricanes in the US.

Meanwhile, Exxon also got a boost from a one-off $390m payment to settle a lawsuit in the last three months of the financial year.

Without the exceptional item, earnings for the quarter came in at $1.65 per share, still significantly better than analyst forecasts of $1.45.

Production squeeze

Despite the good news, Exxon did reveal that oil and gas production fell by 1% during the quarter.

But, Exxon suggested the problems may have been down to the effect of Hurricanes Katrina and Rita.

Once the effect of the storms was stripped out, along with other one-off factors, production actually rose 2%, the group said.

Meanwhile, reports suggested there could be trouble ahead for the group.

Commentators suggested falling production could be evidence that Exxon is having trouble accessing supplies in the Middle East as well as battling to raise output at maturing oil fields.

Analysts also warned that the sky-high profits could also trigger calls from consumer groups and politicians for special taxes to be slapped on oil firms as they have been the main beneficiaries of recent record petrol prices.

 

[MobBoss]

Exxon profits surge to new record

This would infuriate me if I was an American. Having record gas prices in the autumn and seeing it all end up in the pockets of Oil-Companies, their managers and their stockholders. Sort of "Extra gas tax".
God bless (corporate) America.

Its not an extra gas tax at all. Basically, they bought oil at a certain price years ago and are now selling it at a huge profit, due to higher oil prices. They didnt set the oil price, but they speculated against it by buying low and selling high.

Why on earth should we be angry at business's that are profitable?

 

[El_Machinae]

They are rewarded for investing in infrastructure. As well, if it bothers you, buy some of the shares, then it won't.

BUT, I will agree that it irks me ... but only because I'd rather pay less for gasoline. I get irritated when coffee goes up in price too, though.

 

[Irish Caesar]

This would infuriate me if I was an American.

This does infuriate me and I am an American. On the upside, I don't own a car...

 

[Bozo Erectus]

This would infuriate me if I was an American. Having record gas prices in the autumn and seeing it all end up in the pockets of Oil-Companies, their managers and their stockholders. Sort of "Extra gas tax".
God bless (corporate) America.

Its this thing called 'capitalism'. Businesses offer products and services. People give them money in exchange. The objective of the business is to make as much moeny as possible. Why should anyone be infuriated?

 

[El_Machinae]

Well, because poor people have to pay a larger percentage of their income into heating their homes if the prices go up. I'd say that's something I don't like.

Of course, there's no real solution, except to subsidize their consumption, which is hard to do properly.

 

[Bozo Erectus]

Its sad that there are poor people. But I know for sure that if we were socialist, there would be more poor people. Capitalism lifts all boats, socialism spreads the misery around.

 

[jonatas]

. Why should anyone be infuriated?

Because they're being gouged at the pump?

 

[Bozo Erectus]

Because they're being gouged at the pump?

Its simple: dont buy the product, or buy it less. Get a hybrid car, take up bike riding, use mass transit. But I dont understand being infuriated because there are people somehwere making lots of money. Envious, sure, but angry? I dont get it.

 

[downtown]

Im a little upset. Im not so upset that gas prices are high per say...its more that they flucuate so much in a short time, so i cant budget well. If soap went from 1.80 to 2.60 in one weekend, id be pissed too

plus, you can buy discount soap. You cant really do that with gas. everybody charges almost the same

 

[Fifty]

I don't know nearly enough about economics to speculate as to whether this was due to Exxon doing something specificall unethical. They don't even set the oil prices, do they?

In any case, as bozo said, they are only doing exactly what businesses are supposed to do. If there is something there that is unethical or wrong that they are doing that I don't know about, then it isn't so much the fault of the company as it is the fault of lawmakers for not regulating properly.

 

[Irish Caesar]

The oil companies do buy their petroleum from a cartel, but they leave plenty of room to make themselves nice profits, as is shown here. If all of the gas companies do just this, they make a lot of money because they know that Americans will b!tch and moan about the gas prices and then do absolutely nothing to cut their consumption of it.

Is it Exxon's fault that gas prices are high? Of course it is; they're raking in huge profits. But really, the blame lies on the average American who refuses to cut down gas consumption.

 

[Bozo Erectus]

Im an anamoly. I live within walking distance of my work, and my scattered family is easily reached via mass transit. I dont own a car, I dont want one, and I love all the extra money I have because Im not spending it all on car insurance and gasoline. If all you guys insist on being willing slaves to the Military Industrial Petroleum Complex, dont blame Exxon.

 

[marioh]

I wish I had bought into oil stocks 5 years ago.

:kick self:

 

[Zelig]

I wish I had bought into oil stocks 5 years ago.

:kick self:

Buy now, the price of oil has nowhere to go but up, until there's too little oil left to make extraction economically profitable...

 

[marioh]

Buy now, the price of oil has nowhere to go but up, until there's too little oil left to make extraction economically profitable...

The stock prices, for the most part, are way too high now. I prefer to have plenty of lower priced stocks than a few high priced stocks.

 

[El_Machinae]

Yes, the cost of pulling up oil is predicted to increase, which means that the value of oil stocks are destined to go down (as profit margins close).

It's knowing when to get out that's the problem.

As well, people could use their money to help build new companies, instead of trying to profit off of dying ones.

 

[Masquerouge]

Its not an extra gas tax at all. Basically, they bought oil at a certain price years ago and are now selling it at a huge profit, due to higher oil prices. They didnt set the oil price, but they speculated against it by buying low and selling high.

Why on earth should we be angry at business's that are profitable?

But why on Earth, if they bought cheap oil years ago, do they have to raise prices then ? They could sell it cheaper and still make a profit, no ? Why don't they raise the prices later, when they are forced to sell the oil they bought at an expensive price ? Could it be because they are taking advantage of our credulity ?
Consumer : "oh my God, oil prices are going up ! Gas will become expensive !"
Exxon Mobil "I guess now is the time to sell the oil we bought cheap..."

NB : I lay the blame on the customer, here.

They are rewarded for investing in infrastructure.

That's actually not true. No investments has been made in refineries in the past 30 years, which is actually the biggest risk for a shortage. It will not be because we will lack oil, but because the means of supply will not be able to satisfy an exponentially growing oil demand. In other words, what good is it to sit on billions of oil barrels when the demand is 5 millions a day and you can only refine 1 million because you lack the infrastructure ?

Is it Exxon's fault that gas prices are high? Of course it is; they're raking in huge profits. But really, the blame lies on the average American who refuses to cut down gas consumption.

So true. Apparently, having a SUV is both a right and a duty.

 

[Aphex_Twin]

Do you think that, in the interest of fairness, EXXON receive more subsidies when it's not making such a big profit?

 

[zulu9812]

This reminds me of yesterday's front page Metro: record profits for Shell and Esso whilst 2.3M Britons can't afford to heat their homes