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TMCNo1
02-01-2008, 11:31 AM
Exxon Mobil posts the largest annual profit by a US company!

By JOHN PORRETTO - AP Business Writer
HOUSTON(AP) Exxon Mobil Corp. on Friday posted the largest annual profit by a U.S. company _ $40.6 billion _ as the world's biggest publicly traded oil company benefited from historic crude prices at year's end.
Exxon also set a U.S. record for the biggest quarterly profit, posting net income of $11.7 billion for the final three months of 2007, beating its own mark of $10.71 billion in the fourth quarter of 2005.
The previous record for annual profit was $39.5 billion, which Exxon Mobil made in 2006.
The eye-popping results weren't a surprise given record prices for a barrel of oil at the end of 2007. For much of the fourth quarter, they hovered around $90 a barrel, more than 50 percent higher than a year ago.
Crude prices reached an all-time trading high of $100.09 on Jan. 3 but have fallen about 10 percent since.
The record profit for the October-December period amounted to $2.13 a share versus $1.76 a share in 2006. Year-ago net income was $10.25 billion.
Also extraordinary was Exxon Mobil's revenue, which rose 30 percent in the fourth quarter to $116.6 billion from $90 billion a year ago.
For the year, sales rose to $404.5 billion _ the most ever for the Irving, Texas-based company _ from the $377.64 billion it posted in 2006.
In a statement, Exxon Mobil Chairman Rex Tillerson said the company continued to meet the world's energy needs through its "globally diverse resource base."

Leroy
02-01-2008, 12:03 PM
Isn't that amazing Harold! We buy it and use it so it must be ok ;)

TMCNo1
02-01-2008, 12:08 PM
Exxon Mobil Chairman Rex Tillerson will probably go ahead and retire and take MILLIONS and MILLIONS from the pot for helping the corporation do so well, so someone else can get their piece of the pie!:( :mad: :o

Patrick Hardy
02-01-2008, 12:30 PM
Got to love our Oil Administration, Sorry I meant, The Bush Administration.

mcdoon
02-01-2008, 12:35 PM
Got to love our Oil Administration, Sorry I meant, The Bush Administration.

All I can say is look at Europe and see what they pay for gas. If you like their high gas prices, elect a few more Democrats, you'll have the same problem here.

TMCNo1
02-01-2008, 12:40 PM
All I can say is look at Europe and see what they pay for gas. If you like their high gas prices, elect a few more Democrats, you'll have the same problem here.

Exxon Mobil also supplies Europe with their share of energy needs, which IMO, they are raping them worse than they are us.

mcdoon
02-01-2008, 12:50 PM
Exxon Mobil also supplies Europe with their share of energy needs, which IMO, they are raping them worse than they are us.

The difference in gas prices between here Europe is mostly due to taxes imposed, not by Exxon, but by their own governments. Which is why I say, if you love Europe's gas prices, elect more Dems. They think and tax just like the Euros.

Jim@BAWS
02-01-2008, 01:03 PM
What do you expect them to make

$10000
$100000
$1000000.

This is a GLOBAL company. Oil is where it is at. It powers the WORLD
I hate EXXON MOBIL myself and DO NOT PURCHASE there products because of there history. Besides there gas/Fuel in my area is usually a FEW cents more per gallon. If you don't like them don't purchase from them...its your choice. Don't complain because they make a profit.
Yes they make ALOT. I wish I made ALOT...guess what so do you.

Typical DEMOCRATIC tought of the day. "I want what you have and I don't want to work for it...I deserve it"

If you want in...buy some stock

Jim@BAWS

Sodar
02-01-2008, 01:23 PM
I am all for a company turning a profit, but when the economy is in the tank and people's spending habits are changing because one company feels that they can gouge the heck out of it consumers, it is a little hard to swallow. With a annual profit in this arena though, Exxon can do anything they want with the lobbying and special interest groups they ahve formed. They are without question a smart group of guys who have figured it out, but so humility and discretion must take place when the general public and general economy are all taking a hit from their business practices.

I would have thought boat dealerships would be a little more concerned about these issues, considering they are selling a product that is typically the first thing to be thrown out the window, when times get tough. Also, their product is a complimentary item to good ole' fossil fuel, so rising fuel costs could in fact price buyers out of the market.

stuartmcnair
02-01-2008, 01:24 PM
The ignorance of the American people is at play here, and the media and Democrats love it.

You have to understand the difference between PROFIT and PROFIT MARGIN.

The oil industry has a profit margin of around 8% (compared to a bank that has an average profit margin of around 17%).

When the price of oil goes up then the overall revenue goes up and profit will go up based on that but that does not mean the margin goes up. Revenue increases are offset by expense increases at the same rate.

The numbers look outrageous but only when taken out of context.

Now, who on this board would like for the federal government to tell you exactly how much you are allowed to make? Anyone? Thought so..

KnoxX2
02-01-2008, 01:36 PM
The ignorance of the American people is at play here, and the media and Democrats love it.

You have to understand the difference between PROFIT and PROFIT MARGIN.

The oil industry has a profit margin of around 8% (compared to a bank that has an average profit margin of around 17%).

When the price of oil goes up then the overall revenue goes up and profit will go up based on that but that does not mean the margin goes up. Revenue increases are offset by expense increases at the same rate.

The numbers look outrageous but only when taken out of context.

Now, who on this board would like for the federal government to tell you exactly how much you are allowed to make? Anyone? Thought so..

Easy there killer! Although you make a good point some of us are told what we can make by the Government! So why should the oil industry be any different. Remember some of us here are Mil. :rolleyes: 8p :D

stuartmcnair
02-01-2008, 01:59 PM
well you guys sure as hell don't make enough....

92 190 PS
02-01-2008, 02:00 PM
Take some time to get educated on the facts.

After crude oil costs, gasoline taxes are the second largest contributor to the price paid at the pump. Together Federal and State excise taxes on fuel account for an average cost of approximately 62 cents per gallon. That's a combined tax of about 20% per gallon of gas.

The federal tax per gallon is 18.4 cents per gallon, and the state tax per gallon varies by state.
Federal tax history on gas..
http://www.taxfoundation.org/taxdata/show/1067.html
State summary...
http://www.michigangasprices.com/tax_info.aspx

Average profit per gallon of gas for oil companies: 10 cents according to the EIA.

Quote: The government collects far more in taxes on every gallon of gasoline than the oil companies collect in profits. If oil company profits are "obscene," as some politicians claim, are the government's taxes PG-13?

:twocents: :popcorn:

mcdoon
02-01-2008, 02:09 PM
Great, now you went and mucked up the whole conversation with facts... :rolleyes:

captain planet
02-01-2008, 02:17 PM
ow, who on this board would like for the federal government to tell you exactly how much you are allowed to make? Anyone? Thought so..
OH, OH, OH, me, me, me. I do. I do.:D :D I would like the federal government to tell the oil companies how much they are allowed to make because our very existence and way of life are determined by the price of gas and diesel fuel. At this point it is pretty obvious that the price of gasoline and diesel fuel have caught up with and is now hurting our economy. When fuel prices are causing the price of everything to go up (like food and the overall cost of living) and it hurts the those in the lower income brackets, it's wrong and we shouldn't have to stand for it. People are hurting because of this and a few fat cats at the top are living it up while the rest of us have to deal with this.

Welcome to the second coming of the Guilded Age.

92 190 PS
02-01-2008, 02:28 PM
Welcome to the second coming of the Guilded Age.[/QUOTE]



WOW.......And you get to vote.....:(

stuartmcnair
02-01-2008, 02:30 PM
ok, here's the scenario...

FED - you can only sell gas in the US for $1 a gallon.

Oil Companies - OK, we won't sell gas in the US.

Thanks for playing.

captain planet
02-01-2008, 02:53 PM
Welcome to the second coming of the Guilded Age.



WOW.......And you get to vote.....:([/QUOTE]
LOL, yea, I just added that for effect, and to see who actually knows what the Guilded Age is/was. ;)

Sceneario,

FED: you can sell gas for $2 per gallon

oil companies: (like they are not going to sell to the most profitable market on the planet) ....."uh OK, but this sucks and we are going to have to spend more money in lobbying this next year."

Thanks for playing.

stuartmcnair
02-01-2008, 03:08 PM
you must be young...

maybe we could elect Jimmy Carter again...

You can make a lot of friends waiting in line to actually get gas. Assuming you can find it.

stulesmi
02-01-2008, 04:20 PM
ahhhhhhhhhh, yes, the 70's. I loved those long lines at the pumps. (great way to make friends, though)

captain planet
02-01-2008, 04:47 PM
you must be young...

maybe we could elect Jimmy Carter again...

You can make a lot of friends waiting in line to actually get gas. Assuming you can find it.
Uh, if you think that was completely the fault of Carter, you need to stop watching american idol and pick up a history book.

stuartmcnair
02-01-2008, 04:55 PM
you're right....It asn't all Carter's fault...the rest of the Democrat Party helped as well...

chudson
02-01-2008, 04:56 PM
Ethanol from corn grown in the U.S. that's the answer! Yea that's the ticket!!!!

stuartmcnair
02-01-2008, 04:58 PM
Cost of Fritos and Tostitos skyrockets! Congress demands Frito Lay reduce prices because they are hurting the chiiiiiilllllldren....

captain planet
02-01-2008, 05:13 PM
wow......

:popcorn: :popcorn: :popcorn: .....popcorn prices are going to rise as well. Ahhhhhhhhhhh! :D

chudson
02-01-2008, 05:14 PM
Well give'em Big Mac's then that'll keep the ole calorie intake up there!!!

450hp@bellsouth.net
02-01-2008, 05:22 PM
The problem with govenment schools is they keep the majority of the American public economically ignorant. The margins made by big oil companies are razor thin. Look at Starbucks, the movie industry, Coke, Ralph Lauren, TV networks, Electronic Arts, Google, Microsoft, Oracle and many, many others. These companies make much greater margins. Maybe Hillary should "take their profits" as well??

I notice many complain but few have the courage to go riase capital to build an oil rig, hire the enginerrs, tow the rig out to sea for a 1 in 10 chance of hitting oil. If an oil company doesn't make a profit each government employee that has his or her pension fund partially invested in oil stocks has not done well. In hind sight I wish I would have invested in oil.

We need to loosen environmental constraints as the problem is not too little oil the problem is too little refining capacity. This country has not built a new refinery in over 20 year. We have enough oil in Alaska to last 20 years but nut jobs are concerened about us drilling in a portion or the park that is proportionate in size to a postage stamp on a tennis court. The Chinese and Indians are not going to suck up less of the supply next year!!

450hp@bellsouth.net
02-01-2008, 05:24 PM
sorry for the duplicate

mcdoon
02-01-2008, 05:31 PM
Uh, if you think that was completely the fault of Carter, you need to stop watching american idol and pick up a history book.

Don't know what history book you're talking about. Price controls were an absolute failure. Nixon and Carter both had their hands in that. It took Mr. Deregulation himself, Ronald Reagan, to bring reality back to the oil and gas markets. If the book you read said anything different it was written by someone sympathetic to government control of economies. If you can point to an example of a price control scheme that didn't cause more harm than good, I'll see what my history book says about it.

captain planet
02-01-2008, 05:36 PM
I almost hate to continue to debate points like this because eventually someone gets thier underwear in a bind. But I feel I must post this just to refute a comment about "razor thin" margins.

HOUSTON -(Dow Jones)- Exxon Mobil Corp.'s (XOM) 2007 net income of $40.61 billion sets a new record for a U.S. company,

I highlighted the important word in that sentence just in case you missed it. ;)

stuartmcnair
02-01-2008, 05:48 PM
and just what were the EXPENSES in getting the NET revenue? If it was somewhere around 92% of that number then it is considered a razor thin margin.

If my investments only made 8% I would be looking for a new broker...

mcdoon
02-01-2008, 06:24 PM
And the point that seems forever lost on socialists is that your attempts to "fix" things always makes then worse. Should we prosecute stupid socialists? I'm madder at them than you are at big oil. :D

JohnnyB
02-01-2008, 07:06 PM
Ethanol is not the answer and the government is trying to cram that down our throats, too.

It takes 1.3gal in equivalent energy to make 1 gal of ethanol.

Doug G
02-01-2008, 08:12 PM
largest annual profit by a U.S. company _ $40.6 billion ...
The previous record for annual profit was $39.5 billion, which Exxon Mobil made in 2006

Low margin/high volume, high margin/low volume, profit is profit. IF the above are facts. IMHO, the driving factor is the perception of 40.6 billion (with a B) of profit as witnessed by the opening comment of "at who's expense".

I am certainly not opposed to any organization turning a profit... It is the general idea in the first place ... however when that profit is a major contributor / influencer of all of our lives in so many trickle down factors, I think they could afford to reduce that by a few B, be a better corporate citizen.

I don't like reading about record profits which come out of all of our pockets regardless of the data. The perception factor outweigh the facts when I hit the pump 2-3 times per week to commute to work, pay higher prices for ______ because of fuel costs etc etc .

Set your records when I feel better about it like in a strong economy with a nice pile of disposable income around.

lanier92prostar
02-01-2008, 08:42 PM
As long as the gov't is getting 20 percent, they are not going to do anything about the price. Simple math, 20% of 3 dollars is more than 20% of 1 dollar. Until we shrink the cost of the government and the deficit, we can expect the government to do nothing. The state of ga relieved us a couple of times by lowering the tax, but they made the money back by reinstating the tax after fuel costs went up again. I have mixed emotions about the government doing something about gas prices. Some people are in favor of less government control, but they want the government to set prices on fuel. You cannot have your cake and eat it too in my opinion. If you also look at statistics, you will find that our fuel consumption is not going down any, simple capitalistice economy, as long as we are willing to pay the price and don't come up with alternatives, the price of fuel will continue to go up. Again, this is all my opinion, that of a teacher who has not had a raise to keep up with the cost of living in 7 years. And by the way, the government sets my salary.

alletric
02-01-2008, 08:42 PM
Here is all you need to know as far as gas and the weather go. You can ***** and complain all you want and it is what it is. Stay home or pay for it. Sure it sucks, but you can buy gas or an electric car. Those are your options.

Jerseydave
02-01-2008, 09:49 PM
What bothers me as of late is that diesel fuel is 40-50 cents higher than reg. gas! This may seem like it only effects people in the trucking industry, but it causes prices to soar for ALL GOODS AND SERVICES! Just about everything we use is moved with diesel-powered trucks and trains. If I'm not mistaken, diesel fuel and home heating oil are cheaper to refine than gasoline. (translates to more profit for the oil companies)

I think the government should step in and set a maximum price differential between diesel and gas. (and home heating oil too)
But of course they won't because it would only hurt them (less fuel tax would be collected)

Oh yeah, stop buying Exxon and Mobil fuels! I believe that would have at least some effect on pricing. (don't the others follow their lead?)

mayo93prostar
02-01-2008, 10:20 PM
oh my goodness Harold, look at what you started now. However, this is part of what makes this forum interesting. I do not like the fact that ExxonMobil is making a huge net profit but I agree with the guys pointing out that this net profit is a reasonable percentage profit based on the total revenue of the company. these oil companies have very large revenue numbers and therefore large profit numbers. but you need to look at the percentage of profit not just the total dollar value.

Hrkdrivr
02-01-2008, 10:37 PM
Stuart and 450hp, right on!! Stuart, you in particular described the "margin" discussion the most succinctly I've seen.

Bottom line...supply is short because our government won't get the hell out of the way and let us drill for our own (and because of skyrocketing demand in China and India), therefore the world market sets the price high, and the rest follows. Bottom line: the GOVERNMENT is the problem. With very few exceptions (the military being one), EVERY time "they" try to "fix" something, it makes it worse.

Jerseydave
02-02-2008, 09:32 AM
Can someone verify this..............I heard a very large percentage of our Alaskan oil goes to Asia??? If this is true, it makes no sense to me that we do this and buy so much oil from the middle east, Russia, etc. WE need to learn to be more independent.

JohnnyB
02-02-2008, 10:13 AM
The ignorance of the American people is at play here, and the media and Democrats love it.

You have to understand the difference between PROFIT and PROFIT MARGIN.

The oil industry has a profit margin of around 8% (compared to a bank that has an average profit margin of around 17%).

When the price of oil goes up then the overall revenue goes up and profit will go up based on that but that does not mean the margin goes up. Revenue increases are offset by expense increases at the same rate.

The numbers look outrageous but only when taken out of context.

Now, who on this board would like for the federal government to tell you exactly how much you are allowed to make? Anyone? Thought so..

All the info is here...exxon is a publicly traded company...you can read for yourself:

http://exxonmobil.com/corporate/files/corporate/xom_2006_SAR.pdf


Revenue: $378B
Op Costs: $310B
Net Income: $39.5B
Cash & Cash Eq @ yr end: $28.?B

Yup, their profit margin is 10.4%

Exxon-Mobile is a giant company. Gas and oil are a part of their business as is chemicals, gas distribution, etc. They are a very efficiently run company, a large employer in the US and have the best safety record in the industry....their total incident rate sets a high standard for other industries. Many companies follow the methods used by Exxon-Mobile because they are a well run organization and a responsible corporate citizen.


Don't mean to stir the pot.....

Leroy
02-02-2008, 05:21 PM
Few companies can post such stellar results over this many years....why didn't I go into oil?

Hrkdrivr
02-02-2008, 05:35 PM
OBTW, good job throwing out the "raw meat" there, No1!!!

Hrkdrivr
02-02-2008, 05:35 PM
double post

jimmer2880
02-02-2008, 07:03 PM
Ethanol is not the answer and the government is trying to cram that down our throats, too.

It takes 1.3gal in equivalent energy to make 1 gal of ethanol.

That is based on a 30 year old study. If you do some reading on recent studies, it is somewhere around .75 gallons to make 1 gal IF you are using corn.

However, if you use switchgrass to produce Ethanol, the return is somewhere around 300% because the grass wouldn't need constant re-planting. Plant once, harvest many times.

http://www.sciam.com/article.cfm?id=grass-makes-better-ethanol-than-corn

TMCNo1
02-02-2008, 07:44 PM
OBTW, good job throwing out the "raw meat" there, No1!!!

Looking back, I would have worded the thread differently, like using the "Interesting", but someone would have turned it into a peeing contest anyway!

Roonie's
02-02-2008, 08:02 PM
Here is all you need to know as far as gas and the weather go. You can ***** and complain all you want and it is what it is. Stay home or pay for it. Sure it sucks, but you can buy gas or an electric car. Those are your options.

Or you can make your own biodiesel out of veggie oil.

I don't even own a diesel but thought it was a cool concept as I saw it on spike TV's Trucks episode. You can buy a kit and get all ingredients for a lot cheaper then fuel. If I owned a diesel I would try it. Give it time and the govt will find a way to tax it.