Exxon's profit soars 69 percent, tops Street
A customer pumps gas at a Mobil gas station in Medford, Massachusetts, in a file photo.
Credit: Reuters/Brian Snyder
HOUSTON |
HOUSTON (Reuters) - Exxon Mobil Corp's quarterly profit rose a better-than-expected 69 percent as the world's largest publicly traded oil company benefited from higher crude prices and improved earnings in its chemical and refining businesses.
In the first quarter, the average U.S. oil price was $95 per barrel, about 20 percent higher than a year earlier, a factor that has lifted earnings at most oil companies.
Since then, prices have climbed above $100 per barrel in a rally fueled by improved world demand for fuel and unrest in the Middle East and North Africa.
"It looks like chemical was really strong," Phil Weiss, oil analyst at Argus Research, said. "And production came in on the higher side relative to my expectations, especially gas."
Exxon shares were likely not responding to the earnings beat because it was driven by chemicals, which is not the company's primary business, Weiss said.
Shares of Exxon edged slightly lower in premarket trading.
Low natural gas prices and an improvement in global economies have boosted results for chemical companies, while refiners are profited from higher fuel demand.
The Irving, Texas, company reported a first-quarter profit of $10.65 billion, or $2.14 per share, up from $6.3 billion, or $1.33 per share, a year earlier.
Analysts on average had expected Exxon to report a first-quarter profit of $2.07 per share, according to Thomson Reuters I/B/E/S.
Revenue rose 26 percent to $114 billion.
Oil and gas output rose 10 percent to 4.82 million barrels oil equivalent per day.
Profit in Exxon's chemicals unit rose 21 percent to $1.5 billion. Refining profit grew to $1.1 billion, up from $37 million a year earlier.
Shares of Exxon fell slightly to $87.56 in premarket trade from a New York Stock Exchange close of $87.78.
(Reporting by Anna Driver in Houston; editing by John Wallace, Dave Zimmerman)
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In a few minutes members of our do nothing congress will rush to the microphones to start the war cry against big oil. These are the same people that have put us heavily in debt and are presiding over the destruction of America. Well, I say congratulations to big oil. Since I have energy stocks, I will take my dividends happily ( and so will a lot of union and teacher pension plans). I’m an unabashed supporter of the free enterprise system. I’ve been in business for over 30 years and the capitalistic system and my hard work has afforded me a good life. Profits are profits and where some people say the oil company profits are a “windfall” consider this. If the government ran the oil companies as they do in some countries, production would be lower, there would be fewer jobs and we would be paying higher prices for fuel. Those against big oil cannot have it both ways. So congress, since it ain’t broke, don’t “fix” it. We have enough problems trying to work around the mess you have made for us.
phuyayyay-
I am always amazed by the vast amount of knowledge you seem to possess in the areas of economics, politics, government … pretty about everything. You are amazing. You say that you are an “unabashed supporter of the free enterprise system” and that the “capitalistic system” works fine for you. Problem is, oil companies and oil producing countries represent the opposite of free enterprise and capitalism. From OPEC production limits to oil companies’ arbitrary refinery limitations there isn’t one drop of free enterprise or capitalism. But I am glad you are raking in those big dividends – whatever economic system we are truly operating under, you are obviously one happy camper. Enjoy,
the price of a gallon of wholesale gas was 2.06 on election day. since then it has gone to 3.43 this morning (thanks new “right” guys, and for the mcdonalds jobs too). that means with the added profits there’s more tax money available and that will….. oh wait a minute. those are corporate profits and those new guys don’t want the filthy rich to help. hold on while i get ‘em another loop hole.
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