But Not All Oil/Fuel Companies Do Well...

[M.D. Holloway]

And my last point. Not all the fuel companies are doing as well as ExxMo...

February 3, 2007
Other Major Oil Companies Report 4Q06 Earnings

Several other major oil companies reported earnings this past week, with somewhat mixed results. With the exception of Royal Dutch Shell, other majors, including Sun, Valero, Marathon, Canada's Imperial Oil and Chevron, reported a decline in earnings compared to the same quarter in 2005, although several reported full year increased earnings. As with most U.S. oil companies, the fourth quarter declines should be measured against record-high oil company profits in late 2005, when the nation's refining sector was still reeling from the impact of two major hurricanes on its Gulf Coast operations.

January 31, 2007, Sunoco reported that fourth-quarter profit fell 57 percent, as quarterly earnings dropped to $123 million from $287 million in the prior-year period. Revenue decreased to $9.04 billion from $9.27 billion in the previous year period. Full-year earnings rose to $979 million from $974 million in the prior year, as revenue grew to $38.72 billion from $33.76 billion in 2005. During the quarter, Chairman and Chief Executive John G. Drosdick said, a mild beginning to the winter heating oil season cut refining margins from second- and third-quarter levels. Maintenance work also hurt production available for sale.

February 1, 2007, Royal Dutch Shell PLC reported a 21 percent increase in fourth-quarter earnings, buoyed in part by high energy prices and its sale of some operations. Net profit came to US$5.28 billion, up from US$4.37 billion, while sales were unchanged at US$75.5 billion. Shell's full-year earnings came to a company record US$25.4 billion up fractionally from 2005's record US$25.3 billion, on sales up 3.9 percent to US$319 billion. The company also said it had taken important steps to bulk up its proven reserves, damaged in a 2004 accounting scandal. Excluding divestitures and other one-time items, Shell's earnings from oil production fell 3 percent, while fourth-quarter sales were flat at $75.5 billion. Earnings fell 4.5 percent to US$791 million at Shell's refining arm, mostly due to lower margins, while its gas earning rose 9.8 percent to US$582 million, thanks to higher prices.

February 1, 2007, Valero Energy Corp. reported a drop in fourth-quarter earnings. Net earnings for the three months ended December 31 fell 18% to $1.11 billion from $1.35 billion a year ago. The sale of Valero's stake in Valero GP Holdings, LLC in December added $196 million to the company's 2006 fourth quarter bottom line. Excluding that one-time item, net earnings were $987 million. Operating revenue tumbled nearly 24% in the quarter to $19.79 billion from $25.89 billion a year ago. For the full year, Valero posted a net income of $5.46 billion, up 52% from $3.59 billion in 2005. Sales last year totaled $91.33 billion, up from 82.16 billion in 2005.

February 1, 2007, Marathon Oil Corp. reported a 15% decline in its fourth-quarter profit, with a steep drop in natural gas prices, higher operating costs and lower refining volumes cutting into the bottom line. Fourth-quarter net income fell to $1.08 billion from $1.27 billion a year ago. Adjusted quarterly income fell to $838 million from $1.33 billion. Revenue in the three months ended December 31 fell 19% to $13.99 billion from $17.22 billion. The company's downstream operations - refining and marketing - totaled $533 million, down from $765 million a year earlier, amid slightly lower processing volumes and weaker prices. For the full year, Marathon had net income of $5.23 billion, compared with $3.03 billion in 2005, with overall revenue for the year rising 3% to $65.45 billion.

February 1, 2007, Canada's Imperial Oil announced that fourth quarter earnings were $794 million, compared with $1,016 million in the fourth quarter of 2005. Net income for 2006 of $3.044 billion was the highest net income in the company's history, surpassing the previous record of $2.60 billion in 2005. In 2006, higher realizations for Cold Lake heavy oil and conventional crude oil, and stronger refining, marketing and petrochemical margins contributed positively to earnings when compared to 2005. Also positive to earnings were higher benefits from resolution of tax matters and the impact of tax rate changes, and lower share-based compensation expenses. Partially offsetting these positive factors was the impact of a stronger Canadian dollar, lower natural gas realizations, lower gains on asset divestments and higher planned refinery maintenance and capital project effects.

February 2, 2007, Chevron reported net income of $3.77 billion for the fourth quarter 2006, down 9 percent from $4.14 billion in the 2005 fourth quarter, and fourth quarter revenue of $47.7 billion, down from revenue of $53.8 billion a year ago in the same period. For the full year 2006, Chevron made a profit of $17.1 billion on revenue of $210.1 billion vs a profit of $14.1 billion on revenue of $198.2 billion in 2005. Downstream profits of $950 million increased $150 million on improved results outside the United States.

[DaveE]

I'm just happy to hear none of them are in the red........