• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Exxon's Profit Rises 39% on surging oil prices and record profit from the company's 45 refineries.

Analog

Analog

Lifer
Exxon's Profit Rises 39% on Record Refining Margins (Update3)
July 29 (Bloomberg) -- Exxon Mobil Corp., the world's largest publicly traded oil producer, said second-quarter net income climbed 39 percent on surging oil prices and record profit from the company's 45 refineries.

Earnings rose to $5.79 billion, or 88 cents a share, from $4.17 billion, or 62 cents, in the year-earlier period, Irving, Texas-based Exxon said in a statement. Sales rose 24 percent to $70.7 billion from $57.2 billion.

Profit from making and selling fuels increased by almost a third to $1.51 billion, the highest level in 13 years, as U.S. gasoline pump prices climbed above $2 a gallon for the first time. Chief Executive Lee Raymond, 65, is benefiting from the widest refining margins since at least 1990.

``Refining margins have been extraordinary,'' Deutsche Bank Securities oil analyst Paul Sankey said before earnings were released. ``Particularly for these integrated companies, on the refining side, we're in uncharted territory.''

Text
 
God Bless America. Where is Amused to defend the free market principles that made this happen? Cue 3...2...1....
 
Oil is a commodity. OPEC controls the oil market for all intents and purposes.

Just as a gold mine will turn out record profits when gold prices rise, so will oil companies. They do not control the market prices.
 
It's called business...for a time several years ago when oil was going for 16-17 bucks a barrel, Exxon and others who have oil wells in the states and the Gulf of Mexico were getting hosed and losing big money on their oil recovery operations.

But they kept the wells going to keep supply up, and also it a b!tch to shut them down and start up again, and took it in the shorts for the long term benefit.

Now they are making money off their wells because supply from foreign markets is low...it happens.
 
Originally posted by: Amused
Oil is a commodity. OPEC controls the oil market for all intents and purposes.

Just as a gold mine will turn out record profits when gold prices rise, so will oil companies. They do not control the market prices.
Click to expand...

They are specifically saying the margin on refining is really high right now, that means they're making a lot of money on top of the price of crude - since OPEC has no impact on refining. Seems to me, they're taking advantage of the fluctuations in oil prices, and pocketing the dips. Why else does gas jump 15 cents a gallon in one day, and takes 2 weeks for it to come back down? I have nothing against making a buck, but it's another thing to gouge - especially when you control so much of a nations supply of gasoline.
 
Oh the horror!! A company makes a profit in its chosen line of business! AAAAAAAAAAAAAAHHHHHHHHHHHHHHHHHHH!!!!1 :Q
 
Originally posted by: yellowfiero
Originally posted by: Amused
Oil is a commodity. OPEC controls the oil market for all intents and purposes.

Just as a gold mine will turn out record profits when gold prices rise, so will oil companies. They do not control the market prices.
Click to expand...

They are specifically saying the margin on refining is really high right now, that means they're making a lot of money on top of the price of crude - since OPEC has no impact on refining. Seems to me, they're taking advantage of the fluctuations in oil prices, and pocketing the dips. Why else does gas jump 15 cents a gallon in one day, and takes 2 weeks for it to come back down? I have nothing against making a buck, but it's another thing to gouge - especially when you control so much of a nations supply of gasoline.
Click to expand...

They are but one refining company out of many. Are Mobil's prices higher than other gas station prices?

Of course not.
 
Originally posted by: beer
God Bless America. Where is Amused to defend the free market principles that made this happen? Cue 3...2...1....
Click to expand...

good one.........lol :thumbsup:
 
I've always wondered what a company does with a profit margin that high. Do they reinvest it back into the company? Payout dividends to share holders?

They obviously aren't using it build more refineries, so the money has to go somewhere. It would be a shame if the money didn't go into R&D or something to advance the market in some fashion.


"Do you like my hat? Its made of money."
 
Originally posted by: yellowfiero
Originally posted by: Amused
Oil is a commodity. OPEC controls the oil market for all intents and purposes.

Just as a gold mine will turn out record profits when gold prices rise, so will oil companies. They do not control the market prices.
Click to expand...

They are specifically saying the margin on refining is really high right now, that means they're making a lot of money on top of the price of crude - since OPEC has no impact on refining. Seems to me, they're taking advantage of the fluctuations in oil prices, and pocketing the dips. Why else does gas jump 15 cents a gallon in one day, and takes 2 weeks for it to come back down? I have nothing against making a buck, but it's another thing to gouge - especially when you control so much of a nations supply of gasoline.
Click to expand...

Exactly who is "pocketing the dips"?

You want some of it, become a shareholder. Exxon pays a pretty good yield.
 
Originally posted by: KnightBreed
I've always wondered what a company does with a profit margin that high. Do they reinvest it back into the company? Payout dividends to share holders?

They obviously aren't using it build more refineries, so the money has to go somewhere. It would be a shame if the money didn't go into R&D or something to advance the market in some fashion.


"Do you like my hat? Its made of money."
Click to expand...

yes, yes and yes. and add in increased employment, higher pay, and bonuses. And they do build more refineries, just can't really do it in US because of the stupid envirowackos and others. Exxon built a new, huge refinery in China about 10 years ago.

Unfortunatly, many folks beleive the profits are held in secret, well-guarded vaults never to see the light of day.
 
Originally posted by: CPA
Originally posted by: KnightBreed
I've always wondered what a company does with a profit margin that high. Do they reinvest it back into the company? Payout dividends to share holders?

They obviously aren't using it build more refineries, so the money has to go somewhere. It would be a shame if the money didn't go into R&D or something to advance the market in some fashion.


"Do you like my hat? Its made of money."
Click to expand...

yes, yes and yes. and add in increased employment, higher pay, and bonuses. And they do build more refineries, just can't really do it in US because of the stupid envirowackos and others. Exxon built a new, huge refinery in China about 10 years ago.

Unfortunatly, many folks beleive the profits are held in secret, well-guarded vaults never to see the light of day.
Click to expand...

Oh please, typical rightwing talking points. It's all environmentalists fault. They aren't opening new refineries because they are making huge profits with existing ones. Why would they add more supply to undermine their pricing power?
 
Supply and demand. Demand is high and the supply of refined gasoline is somehow always low. We could use a few more refineries.
 
Originally posted by: SuperTool
Originally posted by: CPA
Originally posted by: KnightBreed
I've always wondered what a company does with a profit margin that high. Do they reinvest it back into the company? Payout dividends to share holders?

They obviously aren't using it build more refineries, so the money has to go somewhere. It would be a shame if the money didn't go into R&D or something to advance the market in some fashion.


"Do you like my hat? Its made of money."
Click to expand...

yes, yes and yes. and add in increased employment, higher pay, and bonuses. And they do build more refineries, just can't really do it in US because of the stupid envirowackos and others. Exxon built a new, huge refinery in China about 10 years ago.

Unfortunatly, many folks beleive the profits are held in secret, well-guarded vaults never to see the light of day.
Click to expand...

Oh please, typical rightwing talking points. It's all environmentalists fault. They aren't opening new refineries because they are making huge profits with existing ones. Why would they add more supply to undermine their pricing power?
Click to expand...
because they have competitors who will do it if they don't. There is a well established and growing shortage of refinery capacity in this country that is only going to get worse...
 
FTC is investigating Shell for wanting to close a refinery in CA. So don't give me that environmentalists are stopping us from opening refineries cr@p.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top