Exxon makes record profit

Dari

Lifer
Oct 25, 2002
17,134
38
91
Incredible that McCain has no problem cutting the taxes of these guys when they're raking in all this cash.

link

Exxon Mobil: Biggest profit in U.S. history

Largest U.S. oil company surges past analyst estimates to post net income of $14.83 billion

NEW YORK (CNNMoney.com) -- Exxon Mobil Corp. set a quarterly profit record for a U.S. company Thursday, surging past analyst estimates.

Exxon Mobil (XOM, Fortune 500), the leading U.S. oil company, said its third-quarter net profit was $14.83 billion, or $2.86 per share, up from $9.41 billion, or $1.70, a year earlier. That profit included $1.45 billion in special items.

The company's prior record was $11.68 billion in the second quarter of 2008.

The latest quarter's net income equaled $1,865.69 per second, nearly $400 a second more than the prior mark.

The company said its revenue totaled $137.7 billion in the third quarter.

Analysts had expected Exxon to report a 40% jump in earnings to $2.38 per share, or net income of $12.2 billion, and a 28% surge in revenue to $131.13 billion, according to a consensus of estimates compiled by Thomson Reuters.

The company's earnings were buoyed by oil prices, which reached record highs in the quarter before declining. Oil prices were trading at $140.97 a barrel at the beginning of the third quarter, and had fallen to $100.64 at the end.

Compare that to 2007, when prices traded at $71.09 a barrel at the beginning of the third quarter, and rose to $81.66 by the end.

Last of the big quarters
Exxon's special charges include the gain of $1.62 billion from the sale of a German natural gas company. It also includes the $170 million charge in interest related to punitive damages from the Valdez oil spill off the Alaskan coast in 1989.

The Irving, Texas-based company said it lost $50 million, before taxes, in oil revenue because of Hurricanes Gustav and Ike. The company expects damages related to these hurricanes to reduce fourth-quarter earnings by $500 million.

Exxon's stock price slipped by about 2% in afternoon trading. Bernie McGinn, Chief Executive of McGinn Investment Management and owner of 30,000 Exxon shares, said he wasn't surprised, given the recent downturn in oil prices.

"That's probably the last of the big profit quarters, at least for now," said McGinn. "You can't make the case that it's going to continue."

Despite the surge in profit, Exxon said oil production was down 8% in the third quarter, compared to the same period last year.

The company also said it is spending more money to locate new sources of oil. Exxon said it spent $6.9 billion on oil exploration in the third quarter, a jump of 26% from the same period last year. The company said it began a new program to tap natural gas offshore from Nigeria.

More investments
Exxon also has an aggressive program for buying back stock, with 109 million of its shares repurchased during the third quarter, at a cost of $8.7 billion.

In a conference call with analysts, David Rosenthal, vice president of investor relations for Exxon, said the company's "first priority" is using profits to continue investing in exploration programs for oil and other resources.

Rosenthal said the company would also consider using new-found funds to bolster its dividend, buy back more shares and to purchase other companies, but he declined to offer specific details.

Phil Weiss, analyst for Argus Research, said he doesn't expect Exxon to break any more profit records in future quarters.

"I don't expect the fourth quarter to be nearly as good as the third because of lower oil prices," said Weiss.

Analysts also said that demand for gasoline is falling, which could impact Exxon and other oil companies.

"While oil companies benefit from high oil prices in the short run, they might lose in the long run," Anas Alhajji, chief economist for NGP Energy Capital Management, wrote in an email to CNNMoney.com. "Higher oil prices lead to lower demand, as we have seen in recent months."

Earlier Thursday, Europe's leading oil company, Royal Dutch Shell PLC (RDSA), reported a 22% gain in net profit for the third quarter, to $8.45 billion. The company said sales rose 45% to $132 billion.

Exxon is the second-largest company in the Fortune 500 in terms of annual sales, behind Wal-Mart Stores (WMT, Fortune 500).

Exxon's stock price has fallen about 20% so far this year, compared to the S&P 500, which has fallen about 36%.
 

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
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Aug 23, 2003
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Their 4th quarter profits should be down, since they've manipulated the prices back to $2/gallon right on time for the election.

Make no mistake, they are doing everything in their power to get McCain in the White House so they can fatten their bottom line even more.

But gas prices should be back up in the 1st quarter of 2009, right after they sucker us into driving more and buying SUVs again.
 

Farang

Lifer
Jul 7, 2003
10,914
3
0
I wish the Democrats would stop with the record profit talk it makes you look like idiots.

And now I expect a Republican to say "har har har, that's not the only thing har har har"
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
How is this a bad thing again? Companies are SUPPOSED to increase their profits year over year and as alway exxon is in the norm for profit margins, not high, not low...just normal.

"In a conference call with analysts, David Rosenthal, vice president of investor relations for Exxon, said the company's "first priority" is using profits to continue investing in exploration programs for oil and other resources.

Rosenthal said the company would also consider using new-found funds to bolster its dividend, buy back more shares and to purchase other companies, but he declined to offer specific details.
"

So cutting their taxes would lead to MORE exploration for oil and other resources. That's a GOOD thing.
 

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
Moderator
Aug 23, 2003
25,375
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Originally posted by: spidey07
So cutting their taxes would lead to MORE exploration for oil and other resources. That's a GOOD thing.
Like pigs at a trough, gobbling up grade-A shit.

:laugh:
 

Xavier434

Lifer
Oct 14, 2002
10,377
1
0
Originally posted by: spidey07
How is this a bad thing again? Companies are SUPPOSED to increase their profits year over year and as alway exxon is in the norm for profit margins, not high, not low...just normal.

"In a conference call with analysts, David Rosenthal, vice president of investor relations for Exxon, said the company's "first priority" is using profits to continue investing in exploration programs for oil and other resources.

Rosenthal said the company would also consider using new-found funds to bolster its dividend, buy back more shares and to purchase other companies, but he declined to offer specific details.
"

So cutting their taxes would lead to MORE exploration for oil and other resources. That's a GOOD thing.


Sorry, but we already tried cutting their taxes and the trickle down effect didn't work as intended and as usual I might add. What you suggest is not impossible, but most of America is not willing to bet on it right now. I assume you believe in proper representation right?
 

JD50

Lifer
Sep 4, 2005
11,630
2,014
126
OP, what was their profit margin and what is an acceptable profit margin to you?
 

retrospooty

Platinum Member
Apr 3, 2002
2,031
74
86
Originally posted by: spidey07
How is this a bad thing again? Companies are SUPPOSED to increase their profits year over year and as alway exxon is in the norm for profit margins, not high, not low...just normal.

"In a conference call with analysts, David Rosenthal, vice president of investor relations for Exxon, said the company's "first priority" is using profits to continue investing in exploration programs for oil and other resources.

Rosenthal said the company would also consider using new-found funds to bolster its dividend, buy back more shares and to purchase other companies, but he declined to offer specific details.
"

So cutting their taxes would lead to MORE exploration for oil and other resources. That's a GOOD thing.

OK, kool-aid boy. Way to miss the point.

Oil companies have been, not only in bed with Washington politicians, but controlling them for decades. It is becasue of the Oil companies that we arent already all using alternative energy based cars. Whenever a promising new technology, with the help of their politicians (controlled by Lobbyists like McCain) surpress it. We are totally owned and you dont even know it.
 

Fern

Elite Member
Sep 30, 2003
26,907
173
106
Originally posted by: Dari
Incredible that McCain has no problem cutting the taxes of these guys when they're raking in all this cash.
-snip-
[/quote]

What tax cuts are you talking about?

Is there something specific for oil companies?

If this is his *across-the-board* rate reduction in corporate taxes, it apllies to all ("C") corporations, so it's silly to raise one company as an example.

IIRC, his plan is to reduce corp taxes down to 25% from 35%. We've the second higherst rates in the world. I'm pretty sure that's only taking our federal income tax into and not the state; most other countries don't even have a state income tax, just a federal (Switzerland has cantonal taxes, but they're an exception). But since we're the 2nd highest, some reduction may be necessary, however, I don't know why it should drop a full 10%.

Fern
 

Xavier434

Lifer
Oct 14, 2002
10,377
1
0
Originally posted by: JD50
OP, what was their profit margin and what is an acceptable profit margin to you?

How about one that is not tremendously based on speculation, preferably has nothing to do with corporate welfare, and is completely absent of any kind of influence on the suppressing of alternative technologies and sources of fuel/energy?

Why is that too much to ask?
 

MikeyLSU

Platinum Member
Dec 21, 2005
2,747
0
71
Yeah, damnit, lets tax them so they make no profit and break even...that way we can give the money to people who really deserve it.
 
Jun 26, 2007
11,925
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Originally posted by: MikeyLSU
Yeah, damnit, lets tax them so they make no profit and break even...that way we can give the money to people who really deserve it.

Yeah, lets exxagerate until our eyes fall out, 100% profit tax is surely coming soon with Obama the Stalinist Marxist Communist Nazi.

Or maybe the tax increase of 3% will be made up with a stronger market to buy because they get beyond that in tax cuts.

Palin has stolen your IQ, now she has 60.
 

winnar111

Banned
Mar 10, 2008
2,847
0
0
Originally posted by: Dari
Incredible that McCain has no problem cutting the taxes of these guys when they're raking in all this cash.

They already pay record amounts of taxes. Enough is enough.
 

cubby1223

Lifer
May 24, 2004
13,518
42
86
The difference is, okay raise their taxes - then they just raise the price per gallon of gasoline. The oil companies don't cover the taxes - WE THE CONSUMERS COVER THEIR TAXES. The taxes do not get paid by the executives, they are paid out of the $$ we spend on the products.
 

winnar111

Banned
Mar 10, 2008
2,847
0
0
Originally posted by: Xavier434
Originally posted by: JD50
OP, what was their profit margin and what is an acceptable profit margin to you?

How about one that is not tremendously based on speculation, preferably has nothing to do with corporate welfare, and is completely absent of any kind of influence on the suppressing of alternative technologies and sources of fuel/energy?

Why is that too much to ask?

They put billions INTO the US treasury. Where's the welfare?
 

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
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Aug 23, 2003
25,375
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Originally posted by: cubby1223
The difference is, okay raise their taxes - then they just raise the price per gallon of gasoline. The oil companies don't cover the taxes - WE THE CONSUMERS COVER THEIR TAXES. The taxes do not get paid by the executives, they are paid out of the $$ we spend on the products.
OMG, so if we reduce the tax to ZERO percent we get FREE gas?

Yay!

:laugh:
 

techs

Lifer
Sep 26, 2000
28,561
4
0
Originally posted by: winnar111
Originally posted by: Dari
Incredible that McCain has no problem cutting the taxes of these guys when they're raking in all this cash.

They already pay record amounts of taxes. Enough is enough.

I didn't see that in the story. Did you just make that up or do you have some proof?

 

winnar111

Banned
Mar 10, 2008
2,847
0
0

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
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Aug 23, 2003
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Originally posted by: winnar111
Originally posted by: techs
Originally posted by: winnar111
Originally posted by: Dari
Incredible that McCain has no problem cutting the taxes of these guys when they're raking in all this cash.

They already pay record amounts of taxes. Enough is enough.

I didn't see that in the story. Did you just make that up or do you have some proof?

http://seekingalpha.com/articl...q1-income-taxes-update
No shit, if you earn more, you get taxed more?

What a stunning revelation.

Obama will end their fat-cat tax breaks, and the American people are behind him on that.
 

nageov3t

Lifer
Feb 18, 2004
42,816
83
91
god damn the US-of-KKK-A where companies make a profit.

damn vampire corporations sucking living labor, and lives the more, the more labor it sucks.
 

Xavier434

Lifer
Oct 14, 2002
10,377
1
0
Originally posted by: winnar111
Originally posted by: Xavier434
Originally posted by: JD50
OP, what was their profit margin and what is an acceptable profit margin to you?

How about one that is not tremendously based on speculation, preferably has nothing to do with corporate welfare, and is completely absent of any kind of influence on the suppressing of alternative technologies and sources of fuel/energy?

Why is that too much to ask?

They put billions INTO the US treasury. Where's the welfare?

You just covered 1 out of 3....without any sort of proof. Where is the proof and where are the other 2?
 

winnar111

Banned
Mar 10, 2008
2,847
0
0
http://www.foxbusiness.com/sto...-rise--setting-record/

Bucking a downward trend among U.S. corporate titans as the country slides toward recession, oil giant Exxon Mobil on Thursday reported the largest quarterly profit ever by an American company.

ExxonMobil?s fourth-quarter profits are expected to fall in tandem with the coinciding decline in the price of oil. A barrel of crude oil was selling for about $65 on Thursday, down from a high of $147 in July.

But record earnings translated to record taxes.

ExxonMobil, which operates within a 43.3% tax rate, paid $11.3 billion in income taxes, $9.3 billion in sales taxes and $11.85 billion in other taxes. That comes to $32.51 billion in taxes during the current quarter.


Looks like nearly half the stimulus check package that we got earlier this year was paid for by a single entity.

Merged

Anandtech Senior Moderator
Red Dawn
 

techs

Lifer
Sep 26, 2000
28,561
4
0
Originally posted by: winnar111
Originally posted by: techs
Originally posted by: winnar111
Originally posted by: Dari
Incredible that McCain has no problem cutting the taxes of these guys when they're raking in all this cash.

They already pay record amounts of taxes. Enough is enough.

I didn't see that in the story. Did you just make that up or do you have some proof?

http://seekingalpha.com/articl...q1-income-taxes-update
HaHa. Wrong. You can't pick out a quarter and say they are going to pay that much in taxes, which is what immediately showed me the complete unreality of your link.
That is just how much they made, and the corporate tax rate. It doesn't take into account charges, expenses, tax loopholes, etc.

 
Jun 26, 2007
11,925
2
0
Originally posted by: winnar111
Originally posted by: Dari
Incredible that McCain has no problem cutting the taxes of these guys when they're raking in all this cash.

They already pay record amounts of taxes. Enough is enough.

They really don't.

After the inventories are included they pay about 10% in taxes for their profits, well, not really because they usually have deductable loans so it's closer to 0% than to 1% when all is said and done, besides, they can deduct most spendings to even bring the profit down enouch that they really don't pay any tax.

CPA can tell you all about that, he's a republican and knows far more about it than i do but if he's hones he'll admit that big companies generally don't pay taxes on profit.