Exxon reports record earnings from record oil, petrol prices

By NZPA

Friday 29th April 2005

It reported today that it had earned almost $US8 ($NZ11.11) billion in the first quarter.

But the 44% increase in earnings came as oil-equivalent production declined almost 5%, underscoring long-term concerns about whether major oil companies are investing enough to raise their output.

Lower-than-projected operational earnings disappointed investors, sending Exxon Mobil shares down $US2.38, or 4%, to $US56. The stock has increased 9% this year.

Excluding special items, profit was $US7.4 billion up from $US5.44 billion in the first quarter of 2004.

Quarterly revenue reached $US82.1 billion, up 21% from a year earlier.

Oil prices have remained at higher levels longer than most analysts expected, extending the run of record profits at Exxon Mobil and other major energy producers.

Crude oil averaged $US50.03 a barrel in the first quarter, up from $US48.27 the last three months of 2004.

It traded as high as $US58.28 this month but closed today at $US51.77, up US16c.

Exxon Mobil's profit of $US7.86 billion ($A10.11 billion) -- a record first quarter -- came after earning $US8.42 billion ($A10.83 billion) in the fourth quarter of 2004, the most ever for a US corporation.

Comments from our readers

No comments yet