Exxon Nets $9.3B Profit In First Quarter

(AP)  Exxon Mobil Corp., the world's largest publicly traded oil company, said Thursday its net income grew 10 percent in the first quarter, as higher refining, marketing and chemical profit margins overcame lower crude oil and natural gas prices from a year ago.

The earnings of $9.3 billion were the company's highest ever for the first quarter and beat Wall Street expectations, but revenue slipped and fell well short of analysts' forecasts.

Investors pushed Exxon Mobil shares to a new 52-week high of $80.49 a share in morning trading on the New York Stock Exchange. By early afternoon, the shares were up 23 cents to $80.15 a share. They've traded as low as $56.64 in the past year.

Net income for the January-March period amounted to $1.62 per share. That was up from $8.4 billion, or $1.37 per share, a year ago. Analysts polled by Thomson Financial were looking for a profit of $1.52 per share.

Revenue fell to $87.2 billion from $88.9 billion a year earlier, well below the $100 billion analysts had forecast. Like other major oil companies, Exxon Mobil was hurt by lower oil and natural gas prices to start 2007 compared with a year ago.

Last year, the Irving, Texas-based company posted the largest annual profit by a U.S. company — $39.5 billion. That result topped the previous record, also by Exxon Mobil, of $36.13 billion, set in 2005.

Last month, Exxon Mobil said it will spend some of that money on more than 20 new global projects in the next three years, investments expected to add 1 million oil-equivalent barrels a day to the company's volumes at peak production.

The company said its spending tab for capital and exploration projects in the first quarter was $4.3 billion and that its plans to spend roughly $20 billion this year on such projects were on track.

"In the first quarter, Exxon Mobil continued to actively invest, bringing additional crude oil, finished products and natural gas to market," Exxon Mobil Chairman and Chief Executive Rex Tillerson said in a statement.

Exxon Mobil was the third major oil company to report earnings in as many days. BP PLC, Europe's second-largest oil company, on Tuesday reported a 17 percent drop in first-quarter earnings on lower oil prices and declining production. On Wednesday, ConocoPhillips said its first-quarter profit rose 7.7 percent, but the result was propped up by asset sales as it also was hurt by lower commodity prices.

Exxon Mobil said earnings from its exploration and production arm — known as the upstream side of the business — were $6 billion, compared with $5.7 billion a year ago, primarily reflecting lower oil and natural gas prices and decreased demand for natural gas in Europe.

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[thize1]

The oil companies will continue to milk the consumer until we vote out the big business politicians (i.e. Republicans). It's strange how the price of gas goes up because of the shortage of oil, the lack of refining capacity, etc. and also increases because we use less and drive more fuel efficient cars. There is no pricing based on the law of supply and demand in the oil business. The price will continue to increase regardless whether oil is available or not. Our Bill of Rights should include "We have the right to be ripped off by the oil companies!".

[king77shaw]

for many Americans, little things like growing your own food or buying local food, heating with wood in the winter, buying hybrids, solar PV panels etc ... will all help - it's obvious why our government is against these measures, just look at these obsene EM profits - the Republican party in particular is owned by big oil and exists to represent them and not "we the people" ... the answer lies in the decentralization of power, both energy-wise and politically ... take matters into your own hands and strive for a higher level of self suffiency ... it will cost more in the short term but will ultimately achieve a higher level of security than the fascists running the show now can offer ... cancel your cable TV while you're at it ...

[afmca]

It is not so much that oil is a non-renewable resource as it is Bush's term in office that is non-renewable. Rove, Cheney, etal were hoping to create a permanent one party dictatorship where big oil could extort money for decades - now that it looks like they have less than 2 years they really have to start inflating the prices now.

[huanaco]

WELL, THE OIL COMPANIES HAVE TO BE HAPPY WITH THIS RETURNS, GOD BLESS MR. BONZO BUSH, CREATING THIS CHAOTIC TIMES WITH A WAR UNCALLED, MORE PROBLEMS WITH IRAN , BOTH COUNTRIES IMPORTANT SOURCES OF OIL HE HAS ACCOMPLISHED WHAT HIS PATRONS ASKED TO DO, INFLATE THE BARREL PRICE. WE CAN,T FORGET THAT THE BUSH FAMILY HAVE A LONG TRADITION TO SERVE THE SAUDI ARABS INTERESTS.

[olebd]

It's not going to get any better because China and India are slurping up more and more gas and oil each year as they grow an grow. We are indirectly fueling their increased consuption just by buying all the products and/or services produced over in their countries. Thank our greedy administration and politicians for their part in allowing our goods to be produced by them too.

[jebby_one]

BTW ...

regarding that ...

"$9 for a little tiny box of cereal at the grocery store"

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if the price of fuel doubles, the 4 cents worth of wheat or corn in that tiny box of cereal will go up to 8 cents. The end result, though will be a tripling of the end product price. But, people like me will find a way to bypass the traditional distribution process. Heck, I may even drive my Prius to the farm and offer the farmer 16 cents for that corn or wheat.

[jebby_one]

" ...They think just because they have a little tiny car that gets great mileage that gas prices won't affect them. They can't even think outside their little tiny box of a life for one minute. Gas prices affect EVERYTHING..."

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?? I have a pretty rich life and my Prius isn't so much a tiny car as it is a hi-tech car. Our Prius compares to our Maxima like our 40 pound flat-screen Sony TV compares to our 80 pound CRT Sony TV. They are both good cars but the Prius is by far the most technologically advanced and the most fuel efficient.

Of course we realize that the price of gas affects almost everything. but, it's not ME thinking inside my small box. The ones thinking inside their tiny boxes are the idiots who fail to see that efficient transportation can reduce the cost of their products or services and thus increase their market share or profit.

[patb071]

Not getting gas on Fridays only means 1 thing. buy it on saturday where you have to burn fuel to get fuel, Thats why people buy gas on there way from work on fridays to have it for the weekend. You want to help. Stop idling at mcdonalds drive thru and learn to cook. That would also mean when you are hungary you don't drive to a fastfood restraunt, u eat at home.

[patb071]

We are taking a resource from our earth that isn't being reproduced. The oil companys know that we will run out, They are collecting as fast and as much as possible. If they were smart they would take that money and develope a new energy source and start profiting from that too!

[shanev137]

People are so stupid.

They think just because they have a little tiny car that gets great mileage that gas prices won't affect them. They can't even think outside their little tiny box of a life for one minute. Gas prices affect EVERYTHING. They affect the price you pay for every commodity that needs to be transported and most services that required travel. It going to be freaken hilarious when everyone is paying $9 for a little tiny box of cereal at the grocery store, won't it. It's almost like Americans want inflation to happen.