Exxon Shatters U.S. Annual Profits Record But Profits Now Way Down
It’s nice to see that some company posted record breaking profits for 2008.
But that was then…and now is now. Looking at THEN:
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.
The reason: income for Exxon slid to $7.8 billion, or $1.55 a share during Oct-Dec. But it is on the rise again. Looking at NOW:
Exxon Mobil, the world’s largest publicly traded oil company, said Friday that its fourth-quarter income fell 33 percent as oil prices declined.
But in a year where oil rose to a record before having its steepest-ever collapse, Exxon still managed to set a record as the most-profitable American corporation. The company earned $45.2 billion in 2008, up from $40.6 billion in 2007.
After riding a tide of swelling earnings in recent years, the once highflying oil sector is beginning to scramble to adjust to a sharp downturn.
Oil prices have dropped more than 70 percent since peaking above $145 a barrel in July. After averaging $100 a barrel in 2008, oil prices are set to decline for the first time this year since 2001.
This Times report says that Exxon took steps to weather the financial storm better than some of its competion.
Some other stories paint more of the picture:
–Chevron Fourth-Quarter Profit Rises, Tops Estimates
–Shell Reports First Loss in a Decade on Oil Plunge
–ConocoPhillips reports $31.8B loss on charges
–Oil Falls on U.S. Supply Gain, Signs That Recession to Deepen
5 Responses to “Exxon Shatters U.S. Annual Profits Record But Profits Now Way Down”
“Exxon Mobil, the world’s largest publicly traded oil company, said Friday that its fourth-quarter income fell 33 percent as oil prices declined.”
This means the poor folks at Exxon Mobil only make $30 billion in the LAST THREE MONTHS… That's $30,000,000,000 NET. My God, the sky is falling!
Yes, some of us do what's called 'putting aside some money for a rainy day”..
When the sky is falling for Exxon Mobil, it means they're only rolling in cash, instead of swimming in it. When the sky is falling for most folks I know of, it means someone's in the hospital, the bank is foreclosing and the kids have to eat at friends' houses three nights a week in order to keep from going hungry.
ZERO PITY for BigOil Nada. Zip. None. Freeze their assets and investigate their culpability with the Bushco regime. If they're guilty, tap their profits for a number of years. Help replace the deficit caused by their illegal corporate takeover of Iraq at taxpayers' expense…financial and blood.
Oh, in a perfect world…
Steve. Um, for Q4, profit was $7.8B (that is net), revenue was about $87B. Still huge numbers, but where did the $30B you referenced for Q4 come from?
I see you figured it was feeding time again, Joe.
When ranked from highest profit margin to lowest, Exxon's industry (Major Integrated Oil and Gas) ranks #60. That is, there are 59 industries MORE profitable than the oil industry.
Of course, if you have a big sales volume you have a big bottom line even with a single digit margin. (However, I realize liberals never major in math.)
Exxon Mobil reported the highest quarterly profit ever and is the main target of any “windfall” tax surcharge. Yet if its profits are at record highs, its tax bills are already at record highs too. Between 2003 and 2007, Exxon paid $64.7 billion in U.S. taxes, exceeding its after-tax U.S. earnings by more than $19 billion.
Once liberals start paying in more income taxes than they make, I'll consider them worthy of rendering opinions.
“Steve. Um, for Q4, profit was $7.8B (that is net)…”
My mistake. I was in a rush on my way out of the house and misread the article.
I read the “Exxon Mobil Corp. on Friday reported a profit of $45.2 billion for 2008…” as quarterly profit not annual profit.
Unfortunately, I had the same problem at the golf course… guess it's just not my day.