ExxonMobil Posts Biggest US Corporation Quarterly Profit Ever, Again

[M.D. Holloway]

ExxonMobil Posts Biggest US Corporation Quarterly Profit Ever, Again

Following ConocoPhillips' and Petro-Canada's excellent third quarter earnings reported the previous week, ExxonMobil, Royal Dutch Shell, BP, Chevron, Imperial Oil, Tesoro, Valero, and Marathon reported this past week.

ExxonMobil, the world's largest publicly traded oil company, reported income last Thursday that easily beat its own record for the largest quarterly profit from operations by a U.S. corporation, earning $14.83 billion in the third quarter. ExxonMobil said net income jumped nearly 58 percent in the July-September period, compared to the $9.41 billion it earned in the same quarter a year ago. The previous record for U.S. corporate profit was set in the last quarter, when ExxonMobil earned $11.68 billion. Revenue rose 35 percent to $137.7 billion. ExxonMobil's results got a boost of $1.62 billion in the most-recent quarter from the sale of a natural gas transportation business in Germany. It also took a special, after-tax charge of $170 million related to a punitive damages award related to the 1989 Exxon Valdez oil spill. Excluding those items, third-quarter earnings amounted to $13.38 billion, nearly 15 percent above its previous profit record from the second quarter. As expected, ExxonMobil posted massive earnings at its exploration and production, or upstream, segment, where net income rose 48 percent to $9.35 billion. Downstream earnings of $3,013 million were up $1,012 million from the third quarter of 2007. U.S. Downstream earnings were $978 million, up $64 million from the third quarter of 2007.

Royal Dutch Shell PLC, Europe's largest oil company, last Thursday reported a 22 percent increase in net profit for the third quarter, aided in part to gains from the sale of operations. Shell earned $8.45 billion, up from $6.92 billion a year ago, as sales rose 45 percent to $132 billion. The earnings included one-off gains of $2.06 billion, mostly from the sale of operations, up from $265 million in such gains a year earlier. Shell's exploration and production division increased profit 65 percent to $5.50 billion, entirely due to oil price increases. Shell said a 10 percent fall in oil production was attributable in part to hurricanes in the Gulf of Mexico. Gas production was down 2 percent. The company's refining arm showed a loss of $44 million, down from $2.15 billion profit a year ago. .

BP, Europe's second largest oil company behind Royal Dutch Shell PLC, reported a 83 percent rise in third quarter net profit Tuesday, posting net profit of $8.05 billion for the July to September quarter, up from $4.41 billion in the same period a year earlier. The company said it was well-placed to continue to reap profits despite the fact that the price of oil has now more than halved from July's all-time high uf $1.47. Revenue for the third quarter rose 45 percent to $103.2 billion from $71.3 billion the previous year. Underlying profit for the downstream business made a pre-tax profit of $1.3 billion, up 70 percent compared to the third quarter of last year.

Chevron Corporation last Friday reported net income of $7.9 billion for the third quarter 2008, compared with $3.7 billion a year earlier. For the first nine months of 2008, net income was $19.0 billion up from $13.8 billion for the same period in 2007. Sales and other operating revenues in the third quarter 2008 were $76 billion, compared with $54 billion a year ago. For the first nine months of 2008, sales and other operating revenues were $222 billion, versus $154 billion in the corresponding 2007 period. U.S. downstream earned $1 billion in the third quarter 2008, compared with a loss of $110 million a year earlier. International downstream income of $817 million increased $330 million from the 2007 quarter.

North of the border, Imperial Oil announced last Thursday that net income for the third quarter was a record $1,389 million compared with $816 million for the same period last year. Net income for the first nine months of 2008 was $3,218 million versus $2,302 million for the first nine months of 2007. Operating revenues were $9,478 million in the third quarter, compared with $6,306 million in the corresponding period last year.

San Antonio, Texas-based Tesoro reported last Thursday that its third-quarter net income increased to $259 million from $47 million a year ago. The results benefited from a one-time accounting change that added 40 million to the bottom line. Revenue for the three months ended Sept. 30 rose to $8.7 billion from $5.9 billion.

Increased sales coupled with higher oil and gas prices contributed to Marathon Oil Corp. more than doubling its third-quarter net income. Marathon reported net income of $2.1 billion for the three months ended Sept. 30, 2008, compared with net income of $1 billion for the same period last year. Revenue was $23.4 billion for the quarter, up from $16.9 billion last year. Excluding special items, net income was $1.963 billion compared with net income of $1 billion for third-quarter 2007. The company’s exploration and production business nearly doubled to $939 million from $479 million last year. It also brought in $288 million from the oil sands mining unit acquired from Western Oil Sands last year.

Valero Energy reported third quarter 2008 income from continuing operations of $1.2 billion, which compares to $848 million in the third quarter of 2007. The third quarter 2008 results include the company’s pre-tax gain of $305 million on the sale of its Krotz Springs, Louisiana refinery. Excluding this gain, third quarter 2008 income from continuing operations was $982 million. Income from continuing operations for the nine months ended September 30, 2008, was $2.1 billion compared to $4.0 billion for the nine months ended September 30, 2007. Excluding the gain on the sale of the Krotz Springs refinery, income from continuing operations for the nine months ended September 30, 2008 was $2.0 billion. Third quarter 2008 operating income was $1.8 billion compared to $1.2 billion for the third quarter of 2007. Revenue rose nearly 52% to $36 billion from $23.7 billion.

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[kach22i]

I'm so happy for them.

This transfer of wealth thing has really worked out for them.

[daepp]

I am glad they are doing well! Think of the taxes they pay. And they are an American company.

[Superman]

Profits like that must be creating MASSIVE numbers of jobs.

[kach22i]

Originally Posted by Superman

Profits like that must be creating MASSIVE numbers of jobs.

Yep, every executive can buy himself/herself another McMansion. It will start a new housing boom I heard.

[onewhippedpuppy]

Originally Posted by Superman

Profits like that must be creating MASSIVE numbers of jobs.

While I think you meant to make that green, it's a true statement. Oil exploration in every state that has oil has exploded. With prices per barrel up, suddenly the unprofitable wells are profitable again. Out in central KS the exploration and servicing companies are so busy they can't keep up. They're hiring any able bodied man willing to work in the oil fields. They'd hire more, but the companies that supply the oil industry have YEARS of backlog for building pumping units, drilling units, etc. These are AMERICAN workers, AMERICAN jobs.

That's not to mention the farmers getting large checks from the wells in their fields. Or the local community businesses that are benefiting from an increase in local buying power. I would imagine that this situation repeats itself across OK, TX, SD, NE, ND, and other states with oil.

That report also fails to mention the taxes paid by oil companies. If I recall correctly, Exxon-Mobil paid something like $30B in taxes for Q2 2008. Let me repeat that: $30 BILLION dollars for ONE QUARTER. Obama supporters should LOVE the oil companies.

[daepp]

I will never understand the contempt the left has for business.

[lendaddy]

Most other countries would be celebrating the success of one of their companies.

Man how did we get here?

[Pazuzu]

I like it, we're trying to bag our first real Exxon deal, and this just means they can afford our exorbitant fees!

[legion]

Originally Posted by lendaddy

Most other countries would be celebrating the success of one of their companies.

Man how did we get here?

There are two kinds of people in this country: those that think America is the source of all evil and those that think America is the predominant force for good in the world. Guess which group most of the media, most educators, and most federal politicians are from?

We let the world walk all over us just so we don't get called "mean". We have replaced strong leadership with a string of Neville Chamberlains, and the one strong leader we did have the media brow-beat into submission.

Much like individuals are selfish and act in their own self-interest, so are whole nations--except for us. So while every other country is persuing an agenda that benefits them, individually best, we give in to the selfish interests of other nations instead of doing what is best for ourselves.

[jyl]

I have no problem with XOM making lots of money. I don't want to see the oil industry get unnecessary tax favors, but otherwise I think its perfectly fine.

But I would think 3Q08 is the peak for XOM profits, for some time. Since 3Q, oil px has fallen and demand has fallen as well.

XOM stock reflects this, it has gone down while profits have gone up.

[kach22i]

It goes right back to Washington, so what's the big deal?

http://www.americanprogressaction.org/issues/2008/favorite_senators.html

[pwd72s]

Originally Posted by kach22i

It goes right back to Washington, so what's the big deal?

http://www.americanprogressaction.org/issues/2008/favorite_senators.html

Gee, you have a chart on how much the teacher's union & other public employees unions spend on lobbying?

[onewhippedpuppy]

Originally Posted by pwd72s

Gee, you have a chart on how much the teacher's union & other public employees unions spend on lobbying?

Yeah, put it in perspective. The chart is misleading because it doesn't compare oil company lobbying with that of the thousands of other special interest groups in D.C. Right now you're misleading by omitting facts.

[Superman]

Originally Posted by daepp

I will never understand the contempt the left has for business.

Sadly, I believe you are correct. You will never understand. I definitely do NOT have contempt for business. I believe in capitalism and wish the highest profits on all American corporations.

And I will even accept that, on the whole, long term profits mean affluence and jobs for more Americans. But......I also have noticed......routinely.......like for example over the past several years......that things like "real wages" tend to be negatively correlated with corporate profits. I notice that increasing unemployment (increasing the number of workers in the 'available labor' pool), decreasing real wages, higher energy prices (inflation in general) CAUSE higher corporate profits in the short term.

So yeah, I would have to agree with you. You likely will never understand.

[kach22i]

Jack Abramoff swore me to secrecy.

[lendaddy]

Originally Posted by Superman

Sadly, I believe you are correct. You will never understand. I definitely do NOT have contempt for business. I believe in capitalism and wish the highest profits on all American corporations.

And I will even accept that, on the whole, long term profits mean affluence and jobs for more Americans. But......I also have noticed......routinely.......like for example over the past several years......that things like "real wages" tend to be negatively correlated with corporate profits. I notice that increasing unemployment (increasing the number of workers in the 'available labor' pool), decreasing real wages, higher energy prices (inflation in general) CAUSE higher corporate profits in the short term.

So yeah, I would have to agree with you. You likely will never understand.

Jobs in oil are among the few industries in America where pay is still excellent top to bottom. Yet the executives are really rich. Hmm, how does that fit into your theory Supe?

[onewhippedpuppy]

Originally Posted by Superman

Sadly, I believe you are correct. You will never understand. I definitely do NOT have contempt for business. I believe in capitalism and wish the highest profits on all American corporations.

And I will even accept that, on the whole, long term profits mean affluence and jobs for more Americans. But......I also have noticed......routinely.......like for example over the past several years......that things like "real wages" tend to be negatively correlated with corporate profits. I notice that increasing unemployment (increasing the number of workers in the 'available labor' pool), decreasing real wages, higher energy prices (inflation in general) CAUSE higher corporate profits in the short term.

So yeah, I would have to agree with you. You likely will never understand.

Do you know what the average roughneck makes right now? They work hard, but are dearly rewarded. Pretty much the epitome of the working class blue collar that you claim is getting screwed by the man. Not every aspect of big business is evil.

[widgeon13]

Someone has to be the most profitable. Sure as shlt isn't going to come from the automobile industry, they have been screwing things up for years. Better to have a US company than the Chinese. I don't take objection to the profits but I do think the stock options and compensation packages for executives should be a little more within reason. I find it hard to comprehend that a few execs are completely responsible for those profit figures yet they take all the credit and get payed more money than most people would earn in a bunch of lifetimes. I'd just like to see some common sense prevail.

But I suppose our new El Presidente will take care of that and the profits as well. Too bad, because I think competition and profitability are what make the US economy as strong and vibrant as it is. Political intervention will screw things up royally.

Interesting fact that when Exxon announced it's profits that same day I believe the stock went down pretty significantly, go figure. They (the market) had already factored in the profits and were reacting to the decline in the price of oil.

I suppose some here would rather see cutbacks in employment, early retirement packages, loses and salary reductions, yeah that is going to do wonderful things to our economy.

[pwd72s]

http://www.independentmindedteacher.org/neadisclosure.html

Political Activities and Liberal Interest Groups
In its disclosure to the U.S. Department of Labor, NEA reported spending $25 million on "political activities and lobbying,"

You may note that this figure is above Exxon/Mobil's lobbyist spending...