Tuesday, January 31, 2006
Exxon Adds It All Up: $36 Billion
The New York Times, The Associated Press, Bloomberg News
MONDAY, JANUARY 30, 2006
Exxon Mobil, the largest U.S. energy company, posted Monday the highest profit in U.S. corporate history, amplifying concerns over the good fortune of oil companies while soaring energy prices pressure consumers.
"This might be the best macroeconomic environment ever for oil," said Dave Pursell, a partner at Pickering Energy Partners, Houston-based research firm. "More than any of its peers, Exxon knocked the cover off the ball with its long, disciplined view of global projects."
Exxon's performance last year allowed it to surpass Wal-Mart as the largest company in United States, and by some measures Exxon became richer than some of world's largest oil-producing nations. For instance, its revenue of $371 billion surpassed the gross domestic product of $245 billion of Indonesia, an OPEC member and the world's fourth most populous country with 242 million people.
Exxon posted a net profit of $10.71 billion for the fourth quarter, up from $8.42 billion a year earlier. The result topped Exxon's previous record for quarterly profit, $9.92 billion in the third quarter of 2005.
"Exxon is the most efficient operator in a market characterized by rampant demand and lagging supply growth," said Derek Vogler, a fund manager at Country Trust Bank in Bloomington, Illinois.
Profit in 2005 reached $36.13 billion on revenue of $371 billion.
The annual profit easily surpassed the previous record of $25.3 billion, which Exxon had also set in 2004, according to Howard Silverblatt, senior index analyst at Standard & Poor's in New York. Only Ford Motor's profit of $22 billion in 1998 resemble Exxon's success in recent memory, Silverblatt said.
Political uncertainties in oil-rich nations also worked in Exxon's favor recently, as concern over Iran's nuclear ambitions and tension in Nigeria and Venezuela kept oil prices high.
Crude oil prices have doubled in the last two years, driven by strong demand in rising economies of Asia and in the United States. Oil for March delivery rose by 59 cents to close at $68.35 a barrel in New York trading.
The stellar earnings brought fresh criticism of the energy industry in Congress on Monday.
"The federal government has a responsibility to make sure that these companies continue to innovate instead of just profiting from the status quo," said Senator Charles Schumer, Democrat of New York. "These companies should be investing in developing new sources of fuel and new technologies."
Senator Barbara Boxer, a California Democrat who sharply criticized oil executives appearing before the U.S. Congress in November, spoke on the subject again Friday. She called on the administration of George W. Bush and the U.S. Federal Trade Commission to "put an end to gouging," then suggested that FTC stood for "Friend to Chevron."
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The New York Times, The Associated Press, Bloomberg News
MONDAY, JANUARY 30, 2006
Exxon Mobil, the largest U.S. energy company, posted Monday the highest profit in U.S. corporate history, amplifying concerns over the good fortune of oil companies while soaring energy prices pressure consumers.
"This might be the best macroeconomic environment ever for oil," said Dave Pursell, a partner at Pickering Energy Partners, Houston-based research firm. "More than any of its peers, Exxon knocked the cover off the ball with its long, disciplined view of global projects."
Exxon's performance last year allowed it to surpass Wal-Mart as the largest company in United States, and by some measures Exxon became richer than some of world's largest oil-producing nations. For instance, its revenue of $371 billion surpassed the gross domestic product of $245 billion of Indonesia, an OPEC member and the world's fourth most populous country with 242 million people.
Exxon posted a net profit of $10.71 billion for the fourth quarter, up from $8.42 billion a year earlier. The result topped Exxon's previous record for quarterly profit, $9.92 billion in the third quarter of 2005.
"Exxon is the most efficient operator in a market characterized by rampant demand and lagging supply growth," said Derek Vogler, a fund manager at Country Trust Bank in Bloomington, Illinois.
Profit in 2005 reached $36.13 billion on revenue of $371 billion.
The annual profit easily surpassed the previous record of $25.3 billion, which Exxon had also set in 2004, according to Howard Silverblatt, senior index analyst at Standard & Poor's in New York. Only Ford Motor's profit of $22 billion in 1998 resemble Exxon's success in recent memory, Silverblatt said.
Political uncertainties in oil-rich nations also worked in Exxon's favor recently, as concern over Iran's nuclear ambitions and tension in Nigeria and Venezuela kept oil prices high.
Crude oil prices have doubled in the last two years, driven by strong demand in rising economies of Asia and in the United States. Oil for March delivery rose by 59 cents to close at $68.35 a barrel in New York trading.
The stellar earnings brought fresh criticism of the energy industry in Congress on Monday.
"The federal government has a responsibility to make sure that these companies continue to innovate instead of just profiting from the status quo," said Senator Charles Schumer, Democrat of New York. "These companies should be investing in developing new sources of fuel and new technologies."
Senator Barbara Boxer, a California Democrat who sharply criticized oil executives appearing before the U.S. Congress in November, spoke on the subject again Friday. She called on the administration of George W. Bush and the U.S. Federal Trade Commission to "put an end to gouging," then suggested that FTC stood for "Friend to Chevron."
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