And to Keep the Topic Alive...ExxonMobil Posts Largest Profit and Revenue in History

[M.D. Holloway]

And to keep the topic alive...

February 3, 2007
ExxonMobil Posts Largest Profit and Revenue in U.S. History

February 1, 2007, ExxonMobil Corporation, the world's largest publicly traded oil company, posted the largest annual profit by a U.S. company. The company reported full year 2006 earnings of $39.5 billion, even as earnings for the last quarter of 2006 declined 4 percent, the first time since the third quarter of 2002 that ExxonMobil had a year-over-year quarterly earnings decline. ExxonMobil's profit for the fourth quarter of 2006 declined to $10.25 billion from the $10.71 billion ExxonMobil earned in the 2005 quarter. The 2006 profit topped the previous record, also by ExxonMobil, of $36.13 billion set in 2005. ExxonMobil's revenue, which rose to $377.64 billion for the year, surpassed the record $370.68 billion it posted in 2005.

The fourth-quarter decline reflects lower profits from ExxonMobil's refining and marketing operations and a sharp drop-off in natural gas prices. Earnings fell on the refining and marketing side to $1.96 billion in the most recent quarter from $2.4 billion a year ago. ExxonMobil's record annual earnings followed a year of extraordinarily high energy prices as crude oil topped $78 a barrel in the summer, driving up average gasoline prices in the United States to more than $3 a gallon.

"ExxonMobil continued to leverage its globally diverse resource base to bring additional crude oil and natural gas to market," said Rex W. Tillerson, ExxonMobil's chairman. "Full year 2006 earnings excluding special items were a record $39,090 million driven by strong results in every business segment. In 2006, spending on capital and exploration projects was $19.9 billion, an increase of 12% over 2005. The results of our long-term investment program yielded an additional 172 thousand oil-equivalent barrels per day of production, a 4% increase over 2005. "The Corporation distributed a total of $32.6 billion to shareholders in 2006 through dividends and share purchases to reduce shares outstanding, an increase of 41% or $9.4 billion versus 2005. "ExxonMobil's fourth quarter earnings excluding special items were $9,840 million, down 5% from fourth quarter 2005. Lower natural gas realizations and refining margins were partly offset by higher crude oil realizations and improved chemical margins. Net income for the fourth quarter was down 4% from 2005."

Excluding special items, ExxonMobil earned $9.84 billion in the final three months of 2006. Quarterly revenue fell to $90 billion from $99 billion in the year-ago period. For the year, ExxonMobil earned $6.62 per share in 2006 versus $5.71 per share in 2005.

The company said it ended 2006 with $32.8 billion in cash, and debt of $8.3 billion.


Fourth Quarter 2006 vs. Fourth Quarter 2005

Upstream earnings were $6,220 million, down $818 million from the fourth quarter of 2005 primarily reflecting lower natural gas realizations and decreased volumes driven by lower European demand.

Downstream earnings were $1,960 million, down $430 million from the fourth quarter 2005, as lower refining and marketing margins more than offset the earnings benefit related to our continuing efforts to efficiently manage inventories. Petroleum product sales were 7,447 kbd, 145 kbd lower than last year's fourth quarter, primarily due to divestments. U.S. Downstream earnings were $945 million, down $213 million. Non-U.S. Downstream earnings of $1,015 million were $217 million lower than the fourth quarter of 2005.

Chemical earnings excluding special items were $1,242 million, up $407 million from the fourth quarter of 2005 due to improved margins and higher volumes. Prime product sales of 6,827 kt (thousands of metric tons) in the fourth quarter of 2006 were up 535 kt from the prior year.


Full Year 2006 vs. Full Year 2005

Net income of $39,500 million was a record and increased $3,370 million from 2005. Net income for 2006 included a special item of $410 million for a tax-related benefit. Net income for 2005 included special items totaling a gain of $2,270 million. Excluding these impacts, earnings for 2006 increased by $5,230 million.

Downstream earnings excluding special items were $8,454 million, an increase of $572 million from 2005 reflecting stronger worldwide refining margins and marketing margins, partly offset by lower refining throughput. Petroleum product sales of 7,247 kbd decreased from 7,519 kbd in 2005, primarily due to lower refining throughput and divestments. U.S. Downstream earnings excluding special items were $4,250 million, up $139 million. Non-U.S. Downstream earnings excluding special items were $4,204 million, $433 million higher than last year.

Chemical earnings excluding special items were $4,382 million, up $979 million from 2005. Margins and volumes were both higher. Prime product sales were 27,350 kt, up 573 kt from 2005.

[livi]

Draining the wealth of Nigeria without any profit left over for the poor population..