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Higher oil prices boost Exxon 4Q profit 2 percent

Exxon Mobil profit rises 2 percent as higher oil price makes up for drop in production

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NEW YORK (AP) -- Exxon Mobil's fourth-quarter profit rose 2 percent as higher oil prices offset a drop in production.

The world's largest publicly traded oil company said Tuesday that it sold crude between October and December for 27 percent more than one year ago. Natural gas prices also jumped 27 percent outside the United States.

Higher prices pushed net income to $9.4 billion, or $1.97 per share, in the fourth quarter, matching Wall Street expectations. It made $9.25 billion, or $1.85 per share, a year earlier.

Revenue rose 15.6 percent to $121.6 billion in the latest quarter.

Exxon, based in Irving, Texas, said that production declined nearly 9 percent in the quarter, even

after spending a record $36.8 billion last year in search of new sources of crude and natural gas.

Exploration projects can take years to yield new production. And some of Exxon's biggest investments recently have been in U.S. natural gas fields, which so far haven't paid off because prices have dropped to their lowest level in a decade.

Crude production declined as some of its fields matured and produced less. And many contracts in foreign countries limit the amount of oil that Exxon can sell as prices rise. And natural gas demand fell in Europe as well.

Overall, earnings in Exxon's exploration and production business rose 18 percent offsetting a 63 percent drop in income from the company's refining business.

The company's refineries, which produce gasoline, diesel and other fuels, have struggled to pass on the higher cost of their primary input, which is crude. Exxon announced Sunday that it is selling its Japanese refining and marketing business to partner TonenGeneral Sekiyu K.K. for $3.9 billion following an extended slide in Japanese fuel demand.

Exxon's chemicals business also saw profits decline 49 percent.

For the full year, Exxon's net income rose 34.8 percent while revenue rose 26.9 percent.

Last week, Chevron Corp. said profits slipped 3.2 percent. ConocoPhillips reported a 66-percent increase in quarterly earnings, though much of that came from the sale of a pipeline and other assets. Royal Dutch Shell expects to report its financial results later this week.

Shares of Exxon Mobil Corp. fell 91 cents to $84.58 in early trading.

 

17 comments

  • dave  •  3 months ago
    IT IS TIME THAT WE VOTE EVERYONE OUT OF OFFICE THAT IS IN NOW THERE NOW
    • exp_x 3 months ago
      I agree, but that won't do anything to bring down the price of oil.
  • 123456  •  3 months ago
    Public enemy number 1....Big Oil !!
    • bill 3 months ago
      Along with OPEC and INVESTMENT BANKS
  • hey gee  •  Orlando, Florida  •  3 months ago
    I may not be no rocket scientist, but I can't help but notice that the price if crude has been around a hundred bucks or less, for the last four weeks, however, the price at the pump has shot up between 45 and 50 cents a gallon (depending on where you go to get gouged) during this same time.
    every time I hear some bull story, all I hear is "no one is making any money on that"
    if nobody ain't making money, where is the loot going?
    is it being shot through the roof for the fist 10 months of this year, so it can drop down to two bucks a barrel or so for three weeks in november?.....is it turning into pixie dust?
    where, oh where has the money went?
    • bill 3 months ago
      These Big Oil comp. have no country or morrells they are just like prostitutes and want to sell to highest bidder no matter how bad the economy is or people who are suffering they would make great IRANIAN citizens
    • Mike 3 months ago
      You're correct. You are not a rocket scientist. I'm tired of seeing all you out of work, mathematically and scientifically illiterate bozos complain about the price of gasoline. Go to http://www.eia.gov/oog/info/twip/twip.asp. If you're feeble little brain can decipher the numbers, all your answers are there. Now shut up or start walking.
    • Allen 3 months ago
      Mike - You are much man - we are all impressed with your arogance. Keep your FOX belligerant attitude in Canada.
  • DW  •  Blackwood, New Jersey  •  3 months ago
    WHEN GAS IS IN DEMAND GAS PRICES GO UP!WHEN OIL PRICES GO UP GAS PRICES GO UP! NOW WHEN GAS IS IN FAR LESS DEMAND GAS PRICES GO UP!OIL PRICES ARE ON A SMALL DECLINE GAS PRICES GO UP!CAN ANYONE HERE SEE THERE IS PRICE FIXING AND GOUGING GOING ON!WHERE THE #$%$ IS OUR GOVERNMENT WHEN YOU NEED THEM!!!SUPER FRUSTRATING!
    • hey gee 3 months ago
      worrying about someone downloading an illegal copy of the Muppets is where they are.
      used to go to Clementon Lake park back in a different time.
  • DAVID  •  3 months ago
    in other news the average joe is deciding wether he should put gas in his car tomorrow to get to work or go to the store to feed his family.
  • bill  •  3 months ago
    Since people can,t afford to buy a home when prices and interest rates are at all time lowes and gasoline heating oil and diesel are at a all time high maybe EXXON MOBILE can donate some empty oil barrels for people to live in.
  • Eric  •  3 months ago
    Public Enemy #1 --- big oil?

    If you don't like big oil, stop using it. That includes, but is not limited to: plastic, heating oil, jet fuel, rubber tires, asphalt, lubricants, synthetic fibers l(ike nylon, rayon, polyester, etc), natural gas, propane, bunker fuel (ship fuel), diesel fuel, and gasoline. Remember stopping oil use means both direct use AND indirect use. Keep in mind there is a food grade oil that is produced from crude oil as well, it is used in packaging (canning if I am not mistaken), so you would need to stay away from that as well. Add to that fertilizer, cosmetics and probably steel and electricity, since steel production uses petroleum coke, and electricity is produced from coal, oil and/or natural gas. This means no cars, no trains, no planes, no trucks, far fewer roads, among other things. Utility poles are soaked in creosote or other wood preservative, so you can't use anything that uses utility poles either. You can't switch to wood to head your house unless you cut all of the wood by hand with tools you already have. Buying a chainsaw would be out as it woud force you to use asphalt, rubber tires, gasoline, plastic, steel, electricity, among many other oil, oil-based, or oil driven products.
    • 123456 3 months ago
      Talk about missing the point! You must be a big oil Pig!
  • BKG1949  •  Montoursville, Pennsylvania  •  3 months ago
    revenues for the year up 26.9% profits up 34.8%. Can you say price gouging? All this when demand is down. This type of greed is what is keeping the economy from any real recovery. People are spending too much of their disposable income on gasoline and heating oil prices. The Northeast is experiencing an extremely mild winter. You people who disagree with my analogy tell me why I just paid $3.69 a gallon for heating oil., when demand certainly is way down? This is pure unbashful greed in its worst form.
  • duuapn2  •  Santa Clara, California  •  3 months ago
    How is that every time the price of crude oil is up these companies making more money?
    In my mind, they should make the same amount or less because demand tends to drop when prices go up. They only way this is possible is that they increase they profit margins by tagging on their addition price increases to the already high price of crude.
  • Yahoo! User  •  3 months ago
    Exxon up, American Down. It will be like this until Gas is well below $2.00/gallon. I love how our top economists and Presidents stand up on stage act all bewildered as to what is happening with the economy and nobody has the nerve to say "stop the corruption and lower fuel costs" Cutting fuel price in half is a $600 BILLION stimulus. The Bush Tax cuts are only 120 billion/year. And the gov loses revenue on business with fuel expenses. If oil was cut in half, the right offs would be chopped in half as well.
  • Complete Fool  •  Mullens, West Virginia  •  3 months ago
    This is where the extra money for the economy is located. Maybe they all will be generous and buy us poor folk something, huh?
  • Eric  •  3 months ago
    You're missing one important part. While the price of crude oil is related to the retail price of gasoline (and other oil-based products), a good number of the oil-based fuels (heating oil, kerosene, diesel, gasoline and others) are traded separately - on different contracts and possibly in different volumes, and with different delivery locations for the various contracts. Even though all of thoise products are based on crude oil, their prices can, and do, move differently - in both amount and direction - than the price of crude oil, more often than not. While I haven't looked lately, the price of oil has been relatively stable recently, but the price of the gasoline contract may have moved significantly in the same time period. If the gasoline contract price moves significantly, there is a reasonable chance that the retail price of gasoline will reflect that move. Maybe not immediately, but eventually.

    Would it be possible to 'get off oil'? Only if you can figure out substitutes for heating oil, diesel fuel, jet fuel, bunker (ship) fuel, plastic, tire rubber and asphalt, lubricants, among a host of other products. Oh yeak, and gasoline too. The substitute _has_ to be made readily available nationwide in order to get away from oil.
  • J.V.  •  3 months ago
    The U,S. Burns 19 MIllion barrels of OIL Per Day. The world Burns 89 million barrels of oil Per Day. We have to stop burning Much Less Oil to bring the price down and reduce oil company profits.
  • donald duck  •  Carlisle, Pennsylvania  •  3 months ago
    name should be crooksonmobile.
  • bill  •  3 months ago
    Just like Washinton DC do alot less work be crooked and greedy and get paid a heck of alot more.
  • Bill  •  Camden, New Jersey  •  3 months ago
    It's wonderful how the price of oil has been stable within a range of $2 a barrel for weeks but gas and diesel prices have been steadily climbing. When you have enough politicians on the payroll, you can do whatever you want.
  • Joe  •  Ithaca, New York  •  3 months ago
    They are just plain greedy!
 
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