Exxon Mobil 1Q profit up 17 pct, Wall Street expected more
By JOHN PORRETTO, AP Business Writer
5/1/2008 10:46 AM

HOUSTON - Exxon Mobil Corp., the world's largest publicly traded oil company, said Thursday record crude prices helped its first-quarter profit climb 17 percent to $10.9 billion _ the second biggest U.S. quarterly corporate profit ever.

But the results still fell short of Wall Street's lofty forecasts, and its shares fell more than 4 percent in morning trading.

The company's refining operations limited the company's overall earnings growth because crude prices for crude oil rose even faster than the rise in prices that drivers see at the gasoline pump.

Lower production to start the year hurt too.

Exxon Mobil, based in Irving, Texas, said earnings for the first three months of the year rose to the equivalent of $2.03 per share, up from $9.3 billion, or $1.62 per share, a year ago.

Analysts polled by Thomson Financial were looking for a larger profit of $2.13 per share.

But even at $10.9 billion, the profit ranks as the second biggest for a U.S. company _ the only bigger result in a three-month period was the $11.7 billion Exxon Mobil posted in the final three months of 2007.

Revenue rose to $116.8 billion from $87.2 billion a year earlier. Analysts were looking for higher revenue of about $124 billion.

Exxon Mobil shares fell $3.95, or 4.2 percent, to $89.11 in morning trading.

The company said earnings at its exploration and production, or upstream, business rose 45 percent to $8.8 billion, lifted by higher oil and natural gas prices. Increased natural gas production was more than offset by lower crude volumes.

Overall production fell 5.6 percent from a year ago, in part from natural field declines and maintenance.

On the refining and marketing side, earnings were off 39 percent from a year ago to nearly $1.2 billion. The company said significantly lower worldwide refining margins reduced earnings by about $1 billion in the quarter. Those margins reflect the difference between the cost of crude and what the company makes on refined products such as gasoline.

Crude prices averaged nearly $100 a barrel in the first quarter, up from roughly $58 a barrel a year ago. Analysts have attributed the spike to growing global demand, speculative trading and a weak dollar, among other factors.

Crude has pushed even higher since, reaching a record $119.93 per barrel this week.

Meanwhile, gasoline prices also are reaching new highs _ and creating financial stress for many Americans. The national average price of a gallon of regular gas rose past $3.60 Wednesday.

Already, record crude prices have produced bountiful first-quarter profits for several of the other major oil companies, despite higher costs and lower results from refining.

BP PLC and Royal Dutch Shell PLC, Europe's two biggest oil producers, posted combined profits of $17 billion earlier this week _ $9.08 billion for Shell, $7.6 billion for BP.

BP's earnings surged 63 percent from a year ago; Shell's rose 25 percent.

Last week, ConocoPhillips reported a 16 percent rise in net income to $4.14 billion. Like BP and Shell, the third biggest U.S. oil outfit far outpaced industry expectations.

Chevron Corp., the No. 2 U.S. oil company, is expected to continue the trend. It is scheduled to report first-quarter results Friday.

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The privilege of the writ of habeas corpus shall not be suspended, unless when in cases of rebellion or invasion the public safety may require it. United State Constitution, Art. I Sec. 9 Par. 2

"Dissent is the Highest form of Patriotism" -- Howard Zinn

Yup, free trade at it's finest. When will the people realize that the oil industry is a monopoly, holding us hostage, and making obscene profits at the expense of ruining the economy. Everything goes up with the cost of fuel. Truckers are going bankrupt, Airlines are going bankrupt, the economy is in the shitter and the best that Hillary and McCain can come up with is to suspend the 18 cent Gas tax for the summer, a move that will further hurt our roads and thousands of jobs. Boy the collective genious of the congress is pretty shabby. At this point, there is definent need for price controls on oil, fuck the oil companies and the oil speculators, remember Enron?

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Life is good, the water is sweet. The ground keeps moving beneath my feet.

Most politicians are cock suckers ..

Reason. They argue over points over view that they are really against.Just because there party is on that side of the argument.

So they suck cock for money and defend something they are really totally against

So they confuse the public with all the arguments and nothing gets done in the end once elected ...

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Time To R ll That Shit Up

Politicians are now beholden to special interests. Welcome to the new "Taxation without Representation" people.

Geeze Dave, My exact contention. We are not that far apart my friend. We differ on the vote, but a lot of our core values remain the same. I like Pauls honesty and basically his agenda, minus the complete disolvement of social programs and the privatization of everything.

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Life is good, the water is sweet. The ground keeps moving beneath my feet.

Yes, I've noticed that Med.

So, would the answer be to nationalize the oil companies and eliminate their profits? If so, how would that effect supply? With government in control, what would happen to prices? Would the profit and prices remain the same, but raked in by the government and not private business?

Just asking ...

Vi

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Liberals are people that will believe anything twice.

Vi for once could you not appear as a Corporate supremacist? The Profits that the oil companies are getting are obscene.

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The privilege of the writ of habeas corpus shall not be suspended, unless when in cases of rebellion or invasion the public safety may require it. United State Constitution, Art. I Sec. 9 Par. 2

"Dissent is the Highest form of Patriotism" -- Howard Zinn

Yeah, lets nationalize them, regulate profits and put the reduced profits towards the national debt, then when that is payed off, we can do like other countries with oil. Share the wealth with the citizens. after all, it is our natural resources. Disolve the corporations and jail the profit-mongers. CEOs should be in Jail instead of living in luxury on the backs of the American people. Put me in charge and I'll show you how to do it,~LOL~. Just kidding, I wouldn't want the job. Vi, take that!

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Life is good, the water is sweet. The ground keeps moving beneath my feet.

the simplest way we can beat the oil companies is use less gas.. i know you guys are aware of this, but if no one bought fossil fuels than they would have to lower their prices to nil...

i know its not going to happen over night... but just keep in mind that we employ/support these companies with OUR money..

if i were a scientist i would come up with some way to implement hydrogen powered cars asap and bend over the oil companies for a change...

you can drive cross country with 22 gals of water(depending on your vehicle)!!! it might only cost you 30 dollars to convert 20 gals of water into hydrogen!!! lets get on it....


*cough cough* dave!!! *cough cough* you said you work in the IT field right?

does this not seem like the cheapest and most viable fuel to man?

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"You must be the change you wish to see in the world." Ghandi........
"We must learn to live together as brothers, or perish together as fools." MLK