Exxon Mobil To World "Who Says We Are In A Recession??"

[ILS1]

HOUSTON – Exxon Mobil Corp. on Friday reported a profit of $45.2 billion for 2008, breaking its own record for a U.S. company, even as its fourth-quarter earnings fell 33 percent from a year ago.

The previous record for annual profit was $40.6 billion, which the world's largest publicly traded oil company set in 2007.

The extraordinary full-year profit wasn't a surprise given crude's triple-digit price for much of 2008, peaking near an unheard of $150 a barrel in July. Since then, however, prices have fallen roughly 70 percent amid a deepening global economic crisis.

In the fourth quarter alone crude tumbled 60 percent, prompting spending and job cuts in an industry that was reporting robust, often record, profits as recently as last summer.

With piles of cash and diversified operations, the majors like Exxon Mobil have fared better than many smaller oil and gas companies, but Friday's results show no one is completely insulated from the ongoing malaise.

Irving, Texas-based Exxon said net income slid sharply to $7.8 billion, or $1.55 a share, in the October-December period. That compared with $11.7 billion, or $2.13 a share, in the same period a year ago, when Exxon set a U.S. record for quarterly profit. It has since topped that mark twice, first in last year's second quarter and then with earnings of $14.83 billion in the third quarter.

Revenue in the most-recent quarter fell 27 percent to $84.7 billion.

Both the per-share and revenue results topped Wall Street forecasts. On average, analysts expected the company to earn $1.45 a share in the latest quarter on revenue of $69.1 billion, according to Thomson Reuters.

Shares rose $1.26 to $78.26 in premarket trading.

The nation's second largest oil company, Chevron Corp., reported profits of $4.9 billion for the fourth quarter, though revenues slid 26 percent with oil prices in sharp decline.

It earned $2.44 per share in the three months ended Dec. 31. Like Exxon, Chevron easily beat expectations of analysts, who were looking for profits of $1.81 per share.

The industry went into retrenchment toward the end of the year with demand falling.

As expected, Exxon Mobil's bottom line took a beating from its exploration and production, or upstream, arm, where net income fell 31 percent to $5.6 billion. The culprit: lower crude prices, which the company said decreased earnings by $3.2 billion in the fourth quarter alone.

The company, which produces about 3 percent of the world's oil, said overall output fell 3 percent in the most-recent period, a troubling trend in previous quarters. Exxon, which generates more than two-thirds of its earnings from oil and gas production, said production-sharing contracts and OPEC quotas contributed to its lower output.

Results were better at its refining and marketing unit, where earnings rose 6 percent to $2.4 billion as higher margins overcame costs related to last summer's hurricanes and other factors.

The company's chemical division also took a hit, posting net income of $155 million versus $1.1 billion a year ago. Results were hurt by lower volumes and margins and hurricane-repair costs.

Exxon Mobil said it bought 119 million shares of its common stock in the quarter at a cost of $8.8 billion. Roughly $8 billion of that amount was dedicated to reducing the number of shares outstanding; the balance was used to offset shares issued as part of the company's benefit plans.

Exxon said it spent $26.1 billion on capital and exploration projects last year, up 25 percent from 2007. Its earnings release provided no information about its planned spending for 2009.

For the full year, Exxon Mobil's massive profit amounted to $8.69 a share, versus $7.28 a share a year ago.




Story Link (http://news.yahoo.com/s/ap/20090130/ap_on_bi_ge/earns_exxon_mobil)

[kaorder1999]

unbelievable!

[sahen]

i think the fact that the 4th quarter earnings were down 33 percent from 2007 shows the recession...no way that exxon sets a new record in 2009, the recession is just now starting to hit the oil companies...

[Farmersfan]

Originally posted by sahen
i think the fact that the 4th quarter earnings were down 33 percent from 2007 shows the recession...no way that exxon sets a new record in 2009, the recession is just now starting to hit the oil companies...



Time to trim the fat!!!!! How can they survive with a mere 5 billion a quarter profit???? Horrible! Just Horrible!

[sinfan75]

They're just supplyin us with a product we all need.

[sahen]

Originally posted by Farmersfan
Time to trim the fat!!!!! How can they survive with a mere 5 billion a quarter profit???? Horrible! Just Horrible!

U don't try to make as money as u can at ur job? Exxon is just making there money while they can...another early 80s could strike at any time for the oil industry and they would b in a bine once again. Gotta make money while u can....

[Black_Magic]

Originally posted by sahen
U don't try to make as money as u can at ur job? Exxon is just making there money while they can...another early 80s could strike at any time for the oil industry and they would b in a bine once again. Gotta make money while u can.... Yep! they sure have made money. If they didnt make any in the 80s ( which they did just not a huge amount) they srue made up for it last year. heck like wall street executives.. they are just making money as they can.. leave them alone.:rolleyes:

[Reds fan]

Originally posted by Black_Magic
Yep! they sure have made money. If they didnt make any in the 80s ( which they did just not a huge amount) they srue made up for it last year. heck like wall street executives.. they are just making money as they can.. leave them alone.:rolleyes:

It is absolutely hilarious that people are moaning about Exxon Mobil profits and yet we hear nobody bemoan McDonalds for a $4.3 billion profit last year, an 80% profit increase in 2008 over 2007. All on the backs of the public suffering this recession!

[JR2004]

Originally posted by Reds fan
It is absolutely hilarious that people are moaning about Exxon Mobil profits and yet we hear nobody bemoan McDonalds for a $4.3 billion profit last year, an 80% profit increase in 2008 over 2007. All on the backs of the public suffering this recession!

I bemoan McDonald's! Their prices are getting to be too much for fast food.

[Electus Unus]

Originally posted by Reds fan
It is absolutely hilarious that people are moaning about Exxon Mobil profits and yet we hear nobody bemoan McDonalds for a $4.3 billion profit last year, an 80% profit increase in 2008 over 2007. All on the backs of the public suffering this recession! I think it has to do with the price at the pump not matching the market value. Plus Exxon Mobile doesn't have Big Mac's or McRibs! :D

[Black_Magic]

Originally posted by Reds fan
It is absolutely hilarious that people are moaning about Exxon Mobil profits and yet we hear nobody bemoan McDonalds for a $4.3 billion profit last year, an 80% profit increase in 2008 over 2007. All on the backs of the public suffering this recession! no. it makes perfect sence. More and More folks are having a hard time making ends meet. Gas prices last year made that even harder. SO... More folks eat cheaper faster food instead of going to TGI Fridays, Red Lobster, and Outback... Its economics.

[sahen]

this argument will rage on forever...some poeple hate oil companies no matter waht and see everything they do as bad, and have some justifable reasons cause they sure as heck dont care about saving the consumer some money....then there will be others who see it as people running a buisness that is trying to get what they deem is a fair value for their product (fair as in what someone will pay for it)...the thing is oil companies are running their buisness just like any other large company (apple, microsoft, mcdonalds, wal mart, etc) its just their product more directly effects us than others so when their prices go up it bothers us more....

[Black_Magic]

Originally posted by sahen
this argument will rage on forever...some poeple hate oil companies no matter waht and see everything they do as bad, and have some justifable reasons cause they sure as heck dont care about saving the consumer some money....then there will be others who see it as people running a buisness that is trying to get what they deem is a fair value for their product (fair as in what someone will pay for it)...the thing is oil companies are running their buisness just like any other large company (apple, microsoft, mcdonalds, wal mart, etc) its just their product more directly effects us than others so when their prices go up it bothers us more.... getting taken to the cleaners so to speak bothers me...so would peeing on my back and telling me its raining.

[Reds fan]

Originally posted by Black_Magic
no. it makes perfect sence. More and More folks are having a hard time making ends meet. Gas prices last year made that even harder. SO... More folks eat cheaper faster food instead of going to TGI Fridays, Red Lobster, and Outback... Its economics.

No, economically it is cheaper to cook a meal at home, also better for the economy as a whole as home cooking is healthier therefore putting less of a burden on the economy with healthcare. Your ideology is based on emotion, one factor of economics but only one of many. With that logic you should be demanding that McDonalds in this instance, or any restaurant for that matter, cut their profit margin so folks can make ends meet.

[Electus Unus]

Originally posted by Reds fan
No, economically it is cheaper to cook a meal at home Have you been to the grocery store lately? Its just about even I think.

[LH Panther Mom]

Originally posted by Electus Unus
Have you been to the grocery store lately? Its just about even I think.
Try taking 5 or 6 out to eat then tell me it's even. :doh: :doh: :doh:

[Reds fan]

Originally posted by Electus Unus
Have you been to the grocery store lately? Its just about even I think.

Yep, go to the grocery store often, and can and will definitely say it is less expensive to prepare a meal and eat at home.

[Reds fan]

Originally posted by LH Panther Mom
Try taking 5 or 6 out to eat then tell me it's even. :doh: :doh: :doh:

Now that's a voice of real world experience!

[PPHSfan]

Being a gazzillionaire has afforded me two of the luxuries that I've grown accustomed to.














Eating and Living Indoors.

[big daddy russ]

I don't work for an oil company and can't speak for everyone, but I couldn't be happier than to see Exxon posting these kinds of profits. There's a reason Midland/Odessa is the number one job market in the nation and that Houston is the most the stable housing in the country. D/FW isn't doing too bad, either, and neither is the rest of Texas.

So if you're a Texan (or Oklahoman, or Louisianan) complaining about the oil companies' profits, we could always trade high gas prices for the economies of New England, the Rust Belt, or the West Coast. Your call.

[RMAC]

Originally posted by Black_Magic
no. it makes perfect sence. More and More folks are having a hard time making ends meet. Gas prices last year made that even harder. SO... More folks eat cheaper faster food instead of going to TGI Fridays, Red Lobster, and Outback... Its economics.

This may possibly be the dumbest thing I've will ever read as long as I'm alive.

[mwynn05]

Originally posted by RMAC
This may possibly be the dumbest thing I've will ever read as long as I'm alive. no it isnt it makes complete sense

[UPanIN]

Way to go Exxon Mobil !! :clap: :clap:

[Black_Magic]

Originally posted by RMAC
This may possibly be the dumbest thing I've will ever read as long as I'm alive. OK I will explaine it for you so even you could understand. When hard times hit most people dont spend as much as they did when times are good. when Times are bad there is not enough money for some of the better more fancy things in life. Eating out is one of those finer things of life. If you dont have as much to spend on eating out and other fun stuff then you may want to cut back. SO Mc Donalds is a cheaper solution to eating out at Outback or Red Lobster ect... Its simple economics. the less expensive places will see posibly an increase in business during harder times.

[DDBooger]

Originally posted by Black_Magic
OK I will explaine it for you so even you could understand. When hard times hit most people dont spend as much as they did when times are good. when Times are bad there is not enough money for some of the better more fancy things in life. Eating out is one of those finer things of life. If you dont have as much to spend on eating out and other fun stuff then you may want to cut back. SO Mc Donalds is a cheaper solution to eating out at Outback or Red Lobster ect... Its simple economics. the less expensive places will see posibly an increase in business during harder times. it was pretty simple idea, how someone could call it dumb is amusing.

[RMAC]

Originally posted by Black_Magic
OK I will explaine it for you so even you could understand. When hard times hit most people dont spend as much as they did when times are good. when Times are bad there is not enough money for some of the better more fancy things in life. Eating out is one of those finer things of life. If you dont have as much to spend on eating out and other fun stuff then you may want to cut back. SO Mc Donalds is a cheaper solution to eating out at Outback or Red Lobster ect... Its simple economics. the less expensive places will see posibly an increase in business during harder times.

The concept is simple. That I understand. You, of all people, trying to dumb down something for anybody is laughable. The fact that you're saying when people need more money they eat out at cheaper places is dumb. If you're strapped for money, go buy groceries. I have no sympathy for somebody that won't help themselves. I eat grilled cheese and soup all the time and it runs me about $1.60 a meal.

[Farmersfan]

Originally posted by RMAC
The concept is simple. That I understand. You, of all people, trying to dumb down something for anybody is laughable. The fact that you're saying when people need more money they eat out at cheaper places is dumb. If you're strapped for money, go buy groceries. I have no sympathy for somebody that won't help themselves. I eat grilled cheese and soup all the time and it runs me about $1.60 a meal.



Black Magic has a good point but stops a little short of reality. Some fast food locations show a slight increase in business during slower economic times but in truth if you examine the ENTIRE impact of a recession you would realize that although those Outback and Red Lobster diners will start to frequent Micky D's you also have to realize that those previous Micky Ds diners now are forced to go another route such as the soup and sandwich option at home. A recession will reduce the eating out cash for some but it also eliminates the eating out cash for others. Most of the time it is a near wash................

[Black_Magic]

Originally posted by RMAC
The concept is simple. That I understand. You, of all people, trying to dumb down something for anybody is laughable. The fact that you're saying when people need more money they eat out at cheaper places is dumb. If you're strapped for money, go buy groceries. I have no sympathy for somebody that won't help themselves. I eat grilled cheese and soup all the time and it runs me about $1.60 a meal. If you will read YOUR post then you will see that it was YOU who first "dumb down" somthing I posted. Your forget that or something?

The reason I posted it in the first place is to make the point on the original exon post. of course folks should eat at home if they are that economicaly strapped. But the post I made was not stupid as you said.

[SintonFan]

Originally posted by Black_Magic
If you will read YOUR post then you will see that it was YOU who first "dumb down" somthing I posted. Your forget that or something?

The reason I posted it in the first place is to make the point on the original Exon post. of course folks should eat at home if they are that economically strapped. But the post I made was not stupid as you said.
.
You make it sound like folks have a right to "eat out" and hence the record profits for McDonalds. Why do good folks have to eat out in the first place? Is it a luxury or a right? I'd gather it is a luxury.
You could feed a family of four for $50 a week today. You could also feed that family much more healthy for that same price vs. Mcdonalds or TGIF or any other restaurant.
.
.
Why do you and other folks here gripe about Exxon's profits when they didn't cause they price to go as high as it did? If you believe they were responsible for the price going up(and the corresponding profits) please prove it...
I'm curious.:D

[SintonFan]

Originally posted by Farmersfan
Black Magic has a good point but stops a little short of reality. Some fast food locations show a slight increase in business during slower economic times but in truth if you examine the ENTIRE impact of a recession you would realize that although those Outback and Red Lobster diners will start to frequent Micky D's you also have to realize that those previous Micky Ds diners now are forced to go another route such as the soup and sandwich option at home. A recession will reduce the eating out cash for some but it also eliminates the eating out cash for others. Most of the time it is a near wash................
.
Many a millionaire has eaten bologna sandwiches for under 10-20 cents a pop in good and bad times. That might be why there are so many millionaires today. One of the wisest things I ever heard was(something close to this effect):
"Anyone can build wealth and be rich, if you can spend less than you earn then YOU TOO can be rich over time".

[Black_Magic]

Originally posted by SintonFan
.
You make it sound like folks have a right to "eat out" and hence the record profits for McDonalds. Why do good folks have to eat out in the first place? Is it a luxury or a right? I'd gather it is a luxury.
You could feed a family of four for $50 a week today. You could also feed that family much more healthy for that same price vs. Mcdonalds or TGIF or any other restaurant.
.
.
Why do you and other folks here gripe about Exxon's profits when they didn't cause they price to go as high as it did? If you believe they were responsible for the price going up(and the corresponding profits) please prove it...
I'm curious.:D I never said that anyone had a right or didnt have a right for anything. I said that the profits makes sence when you look at the record profits of the oil companies and Mc Donalds. Mc Donalds profits are from increased trafic to thier places of business. I dont thing the price of a big mack has gone up verry much in the last couple of years. In fact I believe they introduced a $1 menu so some prices have gone down. Exxon on the other hand made record profits but the amount of usage didnt go up as much as the % increace in profits did. Useage didnt go up 200% in two years but the price of gas did. So they have record profits.

[Gontex]

Originally posted by Farmersfan
Time to trim the fat!!!!! How can they survive with a mere 5 billion a quarter profit???? Horrible! Just Horrible!

Hey if you don't like it, why don't you boycott them? You know, do something rash like park your car and walk.

[Farmersfan]

Originally posted by Gontex
Hey if you don't like it, why don't you boycott them? You know, do something rash like park your car and walk.


And then MY energy consumption would go through the roof!!! You obviously haven't seen the engine I would have to fuel if I started walking??? Not to mention the wear and tear on my shoes.... :D :D :D :D

[Aesculus gilmus]

The relatively low oil and gas prices right now are very bad for all of us in the long term.

Right now because of the price crash, projects which would have increased production are being cancelled all over the world.

A few years down the road, there'll be another price shock upward whenever demand picks back up and no new supplies have come online (not to mention depletion of the current fields--see Cantarell offshore Mexico).

As the oil barons who lost their shirts here in Texas in the late '80s used to plead, the prices need to be somewhat "stable"; otherwise no planning can be done.