Thread: Exxon, yet again, record PROFIT.
10-30-2008, 10:24 PM #1
Exxon, yet again, record PROFIT.
Exxon does it again, even in the midst of record high crude (supply) prices. Although according to them this is the last record profit for a while. The revenue was $137 billion but only pocketed $14 billion. Someone explain this:
Despite the surge in profit, Exxon said oil production was down 8% in the third quarter, compared to the same period last year.
The company also said it is spending more money to locate new sources of oil. Exxon said it spent $6.9 billion on oil exploration in the third quarter, a jump of 26% from the same period last year. The company said it began a new program to tap natural gas offshore from Nigeria.
Exxon also has an aggressive program for buying back stock, with 109 million of its shares repurchased during the third quarter, at a cost of $8.7 billion.
So production was down 8% compared to a year ago. Meaning they sold less product, yet still made a record profit. Even after then they spent aprox $1.5 billion more on exploration and bought back $8.7 billion in stock. So without the "extra" costs they tacked on this quarter their profit would have been closer to $25 BILLION! That money made with less product sold. So how could that be, maybe they sold the product at an increased price? Now how much did gas cost a few weeks ago? Did they spend the extra money just to diminish the enormous profits? Wouldn't it be nice to have your sales decrease by 8% yet POCKET the most money you have ever made?
read it here:
10-30-2008, 10:46 PM #2
I'm shocked at how much the CEO and execs make. Does not seem right. And the manipulations and inside politics bother me. But I also got one of YY's points on another thread, that if you think a corp makes too much money, the best thing to do is buy its stock. It sounds cynical, but it may make sense in capitalist system.
I know that stock buy backs are criticized. I recently saw Maria Bartiromo grilling Exxon CEO on this very point. But neither Maria nor CEO tried to explain why its good or bad. I dont see the case one way or the other. What is the argument?
10-30-2008, 10:58 PM #3
I'm not really a big fan of Exxon, but there are two sides to every story.
The company made $40.6 billion last year, that's net income.
Exxon pays taxes at a rate of 41% on its taxable income.
FORTY ONE PERCENT. If I was forced to pay those kind of taxes to the government I would tell you to take your program and shove it.
Now, look at Exxon's 2007 profit margin: about 7.6 percent of revenues late last year. That's not much higher than the 5.8 percent profit margin for all U.S. manufacturing, now if we exclude the financially troubled auto industry, the oil industry actually appears less profitable than most U.S. manufacturers, which were earning over 9 cents on every dollar of sales. That's why it didn't meet with investor's expectations. Like I said, there are two sides to every story.
Take a look...
10-31-2008, 01:02 AM #4
10-31-2008, 06:04 AM #5
The point was that even with their almost 10% lower production and $10 billion extra spent on misc investments they still managed to make the most ever! The price of gasoline was almost $5, the highest ever. So regardless of how much they are taxed we paid the highest ever for gas and they made the most ever. So were the record high gas prices proportional to the record crude prices? Remember, we are talking BILLIONS here, in a three month period.
10-31-2008, 06:38 AM #6
Exxon is only part of the story
Exxon and the other major US producers are mostly refiners and
marketers in the US market. They buy crude from our buddies
in the Middle East, Africa, North Sea, US and Venezuela.
I bet an interesting number would be the profit that is made in
Saudi Arabia on Exxon's purchases. That's the real transfer of wealth.
Oh, maybe we should figure in the cost of the deployment of the American Army
in the first and second Gulf wars and the current Iraq occupation?
That is primarily designed to protect our politically correct Saudi friends.
BTW my politically correct comment is sarcasm. If the Saudi fanatical
religious beliefs were ever truly debated in this country I would dare
say many would be calling for an invasion of them! They take our money,
but they actually hate us for our western civilization beliefs. They
still hold grudges from when the Crusaders went over there and slaughtered
them by the thousands for the Christian religion (really money/power, but that's
another story). Probably can't blame 'em on that point.
US foreign policy is highly cynical when it comes to backing "our bastards" as we have done for a century. The list is long of right wing despots who have tortured and killed to remain in power with US backing. Shah/Iran, Cuba, Viet Nam, Chile, Iraq, Afganistan, Pakistan, etc. No wonder our reputation is so bad around the world.
10-31-2008, 08:57 AM #7
- Join Date
- Nov 2006
The Crusades were a response to muslim aggression, but hey, when it's muslims doing the killing that all ok. right?
10-31-2008, 10:06 AM #8
Last I heard the Crusaders were from Europe and
the territories prior to the attack. Now don't get me wrong.......everybody
has been fighting over Jerusalem for ages. Of all the places in the Universe it shore was a strange one for the God of 3/4 religions to pick it as "the place"!
Now we could argue til the cows come on this stuff. My only reason for
comment is that there is some validity for the hatred Muslims of Middle Eastern extraction generally have for Westerners who try to impose their belief systems on them. Freedom, Democracy, Christianity, Judiasism, just don't seem to drive Muslims wild with desire to have it. Just like Sharia law, beheadings, infidels, virgins in heaven, not eating pork (now that's a real crime!), etc don't hold a lot of appeal for us.
10-31-2008, 10:40 AM #9
- Join Date
- Nov 2007
- Odessa, TX
Now that crude is in the $60 range you should be able to celebrate that Exxon will not be posting a record profit this next quarter, and if you pray hard enough maybe oil will drop more and it might start costing Exxon money to buisness(here in the states that is between $18-25 a barrel depending on the wells in the operating area) that will teach them bastards huh?
10-31-2008, 11:06 AM #10
I anyone thinks XOM's margins are excessive, why not buy their stock and laugh all the way to the gas pump. We greedy capitalists have. Also realize how much of their stock is positioned in 401K's and pension plans. Putting a tax stranglehold on US refiners is going to cost the American public much more than it benefits us.
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