Money What would you do with $45,200,000,000? - Page 2

T-post Tom · 01-31-2009, 01:16 PM

Exxon Mobil sets record with $45.2 billion profit
By JOHN PORRETTO
AP Energy Writer

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 $1.52, or 2 percent, to $78.52 in early 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.

bishop_74 · 01-31-2009, 01:41 PM

I would save the world then buy a T shirt that said I saved the world.

Nightfyre · 01-31-2009, 04:20 PM

OMG WINDFALL PROFITZ DUE TO GAS PRICESSSSS, WE MUST TAX!!

Seriously, where are all those clowns now?

Otter · 01-31-2009, 04:38 PM

"profit" "margin"

I'd have a competent captain who enjoys shore leave driving me around the world in one of these:

(avoiding the coast of Somalia)

bishop_74 · 01-31-2009, 04:50 PM

Quote:

Originally Posted by Otter

"profit" "margin"

I'd have a competent captain who enjoys shore leave driving me around the world in one of these:

(avoiding the coast of Somalia)

Does that boat have a poop deck?

Valiant · 01-31-2009, 04:54 PM

offtopic

One thing I find funny.. Had to fill up my Avalanche finally this year.. Have not been driving a lot lately so one gas tank almost lasted me 6weeks but they passed a law in Missouri that unleaded gasoline now contains 10% ethanol but prices did not drop 10%..

My question is if this is a law now in Missouri and probably will spread isn't the mpg rating false on all vehicles??

Balto · 01-31-2009, 05:16 PM

Try to double it so I could get close to what it will take to get Cowher out of retirement

stumppy · 01-31-2009, 05:17 PM

Quote:

Originally Posted by Otter

"profit" "margin"

I'd have a competent captain who enjoys shore leave driving me around the world in one of these:

(avoiding the coast of Somalia)

Wouldn't be fun to mount a couple of SAW's on the top and go trolling through there ?

angelo · 01-31-2009, 05:19 PM

I would buy the chiefs and become the Jerry Jones, Mark Cuban and Al Davis of Kansas City.
I would be even more eccentric and act like a general ass.

I would also drive thru the plaza in a 1970 convertible Cadillac, chauffeured by a midget in lederhosen sp, throwing cheese at people.

oh and I would donate a lot to charity.

I think I would like to help pregnant teenage mothers get their start.

Ang

Adept Havelock · 01-31-2009, 05:25 PM

I'd buy a small Pacific Island, build a few research stations, stick a giant electromagnet in it, and watch the ensuing hijinks.

That, or buy a salvage yard and build a Moon Rocket out of a cement mixer, tanker cars, using an unstable explosive in liquid form as fuel.

**Bowser** · 01-31-2009, 06:18 PM

They'd have Bowser Ave. in Vegas by the time I was done.

**007** · 01-31-2009, 06:40 PM

I would pay off all of my friends and family's debts.

**banyon** · 01-31-2009, 06:42 PM

I would make sure that I spent a least a portion of it on advertisements designed to make people think that the money had been earned through innovate eco-friendly technologies and the purity of free market enterprise.

**Bugeater** · 01-31-2009, 06:47 PM

Quote:

Originally Posted by Valiant

offtopic

One thing I find funny.. Had to fill up my Avalanche finally this year.. Have not been driving a lot lately so one gas tank almost lasted me 6weeks but they passed a law in Missouri that unleaded gasoline now contains 10% ethanol but prices did not drop 10%..

Ethanol isn't free.

Quote:

Originally Posted by Valiant

My question is if this is a law now in Missouri and probably will spread isn't the mpg rating false on all vehicles??

They are anyway.

beavis · 01-31-2009, 06:47 PM

Buy gold. Those dollars are going to be worthless pretty soon.

beavis · 01-31-2009, 06:48 PM

Quote:

Originally Posted by Otter

"profit" "margin"

I'd have a competent captain who enjoys shore leave driving me around the world in one of these:

(avoiding the coast of Somalia)

I watched a really interesting show the other day on the History Channel about modern pirates. I'd avoid Indonisia also if I were you.

01-31-2009, 01:16 PM
T-post Tom Busy in a Kohl's restroom Join Date: Aug 2002 Location: Milk/Honey/Gazland Casino cash: $1747293	What would you do with $45,200,000,000? Exxon Mobil sets record with $45.2 billion profit By JOHN PORRETTO AP Energy Writer 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 $1.52, or 2 percent, to $78.52 in early 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.
Posts: 22,376

01-31-2009, 01:41 PM	#16
bishop_74 Veteran Join Date: Aug 2000 Location: Denver, CO. USA Casino cash: $8654993	I would save the world then buy a T shirt that said I saved the world.
Posts: 3,642

01-31-2009, 04:20 PM	#17
Nightfyre MVP Join Date: Mar 2004 Location: Helena, MT Casino cash: $1298849	OMG WINDFALL PROFITZ DUE TO GAS PRICESSSSS, WE MUST TAX!! Seriously, where are all those clowns now?
Posts: 18,647

01-31-2009, 04:54 PM	#20
Valiant Valiant 'The Thread Killer' Join Date: Jun 2001 Location: Kansas City Casino cash: $4492380	offtopic One thing I find funny.. Had to fill up my Avalanche finally this year.. Have not been driving a lot lately so one gas tank almost lasted me 6weeks but they passed a law in Missouri that unleaded gasoline now contains 10% ethanol but prices did not drop 10%.. My question is if this is a law now in Missouri and probably will spread isn't the mpg rating false on all vehicles??
Posts: 18,562

01-31-2009, 05:16 PM	#21
Balto Veteran Join Date: Oct 2008 Location: Arizona Casino cash: $-147802	Try to double it so I could get close to what it will take to get Cowher out of retirement
Posts: 2,155

01-31-2009, 05:19 PM	#23
angelo Starter Join Date: Oct 2007 Casino cash: $9094965	I would buy the chiefs and become the Jerry Jones, Mark Cuban and Al Davis of Kansas City. I would be even more eccentric and act like a general ass. I would also drive thru the plaza in a 1970 convertible Cadillac, chauffeured by a midget in lederhosen sp, throwing cheese at people. oh and I would donate a lot to charity. I think I would like to help pregnant teenage mothers get their start. Ang
Posts: 775

01-31-2009, 05:25 PM	#24
Adept Havelock Obligatory Thoughtcriminal Join Date: Mar 2005 Location: Flux,awaiting an observer Casino cash: $10004900	I'd buy a small Pacific Island, build a few research stations, stick a giant electromagnet in it, and watch the ensuing hijinks. That, or buy a salvage yard and build a Moon Rocket out of a cement mixer, tanker cars, using an unstable explosive in liquid form as fuel. __________________ No matter how cynical you are, it is impossible to keep up. -Lily Tomlin I'd rather be a climbing monkey than a falling angel. -Terry Pratchett
Posts: 14,305

01-31-2009, 06:18 PM	#25
Bowser sorta mod-ish Join Date: Jan 2004 Location: KC North Casino cash: $-248384	They'd have Bowser Ave. in Vegas by the time I was done.
Posts: 106,922

01-31-2009, 06:40 PM	#26
007 Shaken. Not stirred. Join Date: Sep 2002 Location: London Casino cash: $12130126 VARSITY	I would pay off all of my friends and family's debts. __________________ My dear girl, there are some things that just aren’t done. Such as, drinking Dom Perignon ’53 above the temperature of 38 degrees Fahrenheit. That’s just as bad as listening to the Beatles without earmuffs.
Posts: 65,738

01-31-2009, 06:42 PM	#27
banyon Supporter Join Date: Aug 2005 Location: Hermosa, SD Casino cash: $10176551	I would make sure that I spent a least a portion of it on advertisements designed to make people think that the money had been earned through innovate eco-friendly technologies and the purity of free market enterprise. __________________ “When war breaks out people say: 'It won't last, it's too stupid.' And war is certainly too stupid, but that doesn't prevent It from lasting.” ~Albert Camus, The Plague.
Posts: 44,355

01-31-2009, 06:47 PM	#29
beavis Free Born Man of the USA Join Date: May 2003 Casino cash: $9954900	Buy gold. Those dollars are going to be worthless pretty soon.
Posts: 7,588