Re: (NDC) Exxon profit tops $10 billion, capping record year


Randy G wrote:
> Discuss amongst yourselves. I love our president and his big oil
> friends.
>
> http://news.yahoo.com/s/nm/20060130/bs_nm/energy_exxon_earns_dc
>
> Exxon profit tops $10 billion, capping record year By Deepa Babington
> 2 hours, 38 minutes ago
>
>
>
> NEW YORK (Reuters) - Exxon Mobil Corp. (NYSE:XOM - news), the world's
> largest publicly traded oil company, on Monday reported a quarterly
> profit of $10.7 billion, capping a year of record earnings dominated by
> surging oil and gas prices.
>
> The results pushed up Exxon's profit for the year to a staggering
> $36.13 billion -- bigger than the economies of 125 of the 184 countries
> ranked by the World Bank. Profit rose 42 percent from 2004.
>
> The company and its peers have come under fire for posting billions in
> profit while consumers struggle with high gasoline prices. Exxon was
> quick to emphasize that such results would help it make long-term
> investments to meet energy demand.
>
> The Irving, Texas company's fourth-quarter net income rose 27 percent,
> to $10.71 billion, or $1.71 a share, from $8.42 billion, or $1.30 a
> share, a year earlier. Revenue was just shy of $100 billion.
>
> Excluding a special gain, the company earned $1.65 per share, handily
> beating the average forecast of $1.45 among analysts polled by Reuters
> Estimates.
>
> "It's an exceptionally strong quarter -- they're the world's most
> profitable company," said Robert Lutts, president of Cabot Money
> Management. "It could raise eyebrows among some, but they're doing
> their job."
>
> Exxon shares were up $1.84, or 3 percent, at $63.13 in late-morning
> trade on the New York Stock Exchange.
>
> OIL'S RECORD RUN
>
> Crude oil prices rose about 40 percent last year, driven up by tensions
> in oil-producing countries like Iran and Nigeria, hurricanes in the
> Gulf of Mexico and tight supplies. They have been rise for four years,
> handing Big Oil a profit bonanza.
>
> Natural gas prices have been on a similar tear, nearly doubling last
> year on the futures market thanks to supply disruptions and higher
> demand.
>
> Earnings at Exxon's exploration and production division rose 44 percent
> to $7.04 billion. Refining and marketing operations posted a marginal
> rise in profit as the impact of the hurricanes offset a boost from
> higher refining and marketing margins.
>
> Still, Exxon's results showed evidence of some of the problems
> affecting large oil companies, which are struggling to raise output as
> they grapple with maturing fields and find it harder to access vast
> reserves in regions like the Middle East and Russia.
>
> Exxon said oil and gas production fell 1 percent in the quarter.
> However, excluding the lingering effects of Hurricanes Katrina and
> Rita, which slammed into the U.S. Gulf Coast last year, as well as
> divestment and entitlement effects, production rose 2 percent.
>
> Analysts expect the company to report higher production this year as
> new projects in Russia and Africa ramp up.
>
> "Progress on tangible growth in oil and gas production has so far been
> slow and, combined with the inertia associated with its sheer scale,
> has led the shares to lag the performance of the smaller names,"
> Citigroup said in a research note.
>
> Exxon used a large chunk of its growing cash pile to buy back shares --
> $5 billion in the fourth quarter, the same as in the third quarter.
> Also, it hiked its quarterly dividend last week.



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