Exxon Breaks its own Profit Record
Posted by shadmia on August 1, 2008
With gas prices at record high levels Exxon Mobil has just released its quarterly earnings. The corporation earned $11.68 billion. It broke its own record as the most profitable company in the US. This is just for a 3 month period. And to top it off they produced 8% less oil and gas in the same period. They made more money while producing less. To break it down:
- $90,000 per minute
- $1,500 per second
Exxon beat its own earnings for the same quarter last year ($10.3 billion) by more than $1 billion. It also topped its previous record of $1.6 billion set in the last quarter of 2007.
Excluding a $290 million charge related to the $508 million punitive damages award for the 1989 Exxon Valdez spill set by a recent U.S. Supreme Court decision, quarterly earnings rose 17 percent to $11.9 billion, or $2.27 per share. Revenue was $138 billion, up from $98 billion a year ago.
“We expect that these results will be viewed negatively today,” Simmons & Co. International said in a note to investors.
Rex Tillerson, Exxon Mobil’s chairman and CEO, said in a statement that record crude and natural gas prices were partially offset by lower refining and chemical margins, lower production volumes and higher operating costs. The company spent $7 billion in the second quarter on capital and exploration projects, up 38 percent. But Exxon Mobil spent $8 billion buying its own stock.
“We are demonstrating our commitment to return cash to our shareholders,”: Henry Hubble, vice president of investor relations, told analysts today. “The way we think about the buyback, it’s a distribution. We view it as nothing more than a distribution.”
On Capitol Hill Democrats decried the oil industry’s blockbuster profits, with Sen. Charles Schumer, D-N.Y. arguing “It’s Christmas in July” in the board rooms of the major oil companies.
“What’s good for Exxon Mobil is not good for America,” Schumer said.