Exxon/Mobile profit soars

[Sava]

Exxon Mobil profit soars

No. 1 oil company edges past Wall Street forecasts as earnings more than double in 1Q.
May 1, 2003: 8:35 AM EDT



NEW YORK (CNN/Money) - Exxon Mobil Corp. reported Thursday that first-quarter profit more than doubled as it beat Wall Street forecasts for the period.

The world's largest oil company earned $4.8 billion, or 71 cents a share, excluding special items, up from $2.1 billion, or 30 cents a share, a year earlier on the same basis. Earnings tracker First Call had a consensus analysts' earnings-per-share forecast of 70 cents.

Including special items, the company earned $7.04 billion, or $1.05 a share.

In a period that saw U.S. gasoline prices reach a record average of $1.722 a gallon on March 18, the day before fighting started in Iraq, Exxon Mobil's revenue rose to $63.8 billion from $43.4 billion a year earlier.

The company reported record earnings from its exploration and drilling income of $3.99 billion, excluding a gain from sales of a German gas transmission unit. That's up from $1.9 billion in income a year earlier. Earnings from its refining and retail sales operations reached $723 million compared to a narrow loss from the unit a year earlier. Chemicals earnings rose 85 percent to $287 million.

Shares of Exxon Mobil (XOM: Research, Estimates), a component of the Dow Jones industrial average, gained 37 cents to $35.20 in trading Wednesday.

http://money.cnn.com/2003/05/01/news/companies/exxonmobil/index.htm

Of course, we have the highest record average per gallon of gas, and XOM shows record profits.

[Dauphin]

How much of the profits are actually attributed to high pump prices?

I know that Shell, for example, make no profit on pump sales in the UK. I think it similar for other outfits.

[Sava]

I'm sure there is no correlation whatsoever

[Giancarlo]

Wow... sava... who cares? What is the top price you pay per gallon? $2? For premium? Wow.. big gain..

Come to Europe, and you will pay $4.50+/gallon for regular.. well that is in Spain.. I heard in Italy and UK it is much higher.. as high as $6+/gallon for regular. I am sure it is higher for premium but I can't remember...

Also you know higher profits can help the economy.. are you against higher profits too? Oh that is right, you are a communist. You hate profits.

So please spare us.

[Sava]

Actually Fez, the US government has a very anti-capitalistic practice. Gasoline would be about what Europe pays but the US government gives billions in subsidies to the oil companies. Who's the communist?

I don't hate profits, I hate companies fleecing the people. Especially in times of need.

[Giancarlo]

Well... actually that is corporatist. Giving huge amounts of subsidies to companies... a corporatist belief.

You hate companies and you hate profits. Fleecing people? Exactly how can you be fleeced when gas prices are below $2/gallon in the US? I don't see any theft there.

In times of need? What nonsense are you on about now?

Lets take this way. In Spain the gas price is double and even triple what it is in the US. Yet our GDP per capita is $21,000 according to recent estimates. In the US the GDP per capita is $36,000. You have more spending power. So who exactly is being fleeced?

[Dauphin]

Actually Fez, the US government has a very anti-capitalistic practice. Gasoline would be about what Europe pays but the US government gives billions in subsidies to the oil companies. Who's the communist?

Over 75% of the pump price in the UK is taxation. SO I find your claim extremely difficult to believe.

To get a comparable price in the US you would have to greatly increase taxes to about a 300% sales tax.

[Sava]

The new detailed report, "Fueling Global Warming: Federal Subsidies
to Oil in the United States," produced for Greenpeace by Doug Koplow
and Aaron Martin at Industrial Economics, Inc found that the US
government provided up to $11.9 billion in subsidies to the US oil
industry in 1995 excluding the cost of defending Persian Gulf oil
supplies (with their inclusion the figure rises to as high as $35.2
billion).

Among the major subsidies to the oil industry analyzed in the report are:
the full cost to maintain the Strategic Petroleum Reserve at $5.4 billion;
tax breaks to domestic oil exploration and production at $2.3 billion; and
support for oil-related exports and foreign production at $1.6 billion.
Other key findings of the report:

.. Oil companies continue to pay substantially less than the standard rate
of corporate taxation, with payments in 1995 more than 23 percentage points
below the statutory rate. The average tax rate paid by oil companies fell
from 21.9% in 1981 to only 11.9% in 1995;

.. Through creative accounting by oil producers and lapses in auditing
practices by some government agencies, the federal government loses $200
million per year in royalties;

http://csf.colorado.edu/clim-econ/current/msg00033.html
Just do a regular internet search on the subject. You'll come up with more than enough information. You probably don't believe me, so please, find out on your own.

[Dauphin]

Where does it say that pump prices in Europe and the US would be the same without the subsidy or tax breaks?

[JohnT]

It's statements like the following:

Actually Fez, the US government has a very anti-capitalistic practice. Gasoline would be about what Europe pays but the US government gives billions in subsidies to the oil companies. Who's the communist?

that really makes it difficult to discuss stuff like this with you, Sava. Honestly, do you really believe that US gasoline prices are so low because of government subsidies???

'Tis to laugh.

[JohnT]

Here in TN, our gas price breaks down like the following:

TN Tax - $.11/gal
US (federal) Tax - $.34/gal

(Taxes quoted from memory, but I'll look this up when I go get more gas - the taxes are clearly labelled on each pump.)

Methinks that the European taxes are substantially higher.

[Sava]

Originally posted by Big Crunch
Where does it say that pump prices in Europe and the US would be the same without the subsidy or tax breaks?

I said "WOULD BE ABOUT"..... not "EXACTLY THE SAME"... but "WOULD BE ABOUT". Please stop red herring yourself into a tizzy.

JohnT: If you aren't informed, then sorry, it would be difficult for you to discuss things with me. The fact is, gasoline prices in this country are significantly lower in part because of the tens of billions of dollars given to oil companies in the form of subsidies. This isn't a secret. Like I said, go to a search engine... any search engine... search for "oil subsidies" and inform yourself.

[Giancarlo]

JohnT, taxes are substantially higher. In Spain, the government has been taken gradual efforts to lower them. But we still pay $4.50/gallon for regular gas... some 60% I think is taxes.

Sava, business subsidies are hardly communist. Infact they are the exact opposite.. from a system we called corporatism.

[Sava]

Sava, business subsidies are hardly communist. Infact they are the exact opposite.. from a system we called corporatism.

Translation: We can engage in anti-capitalistic practices as long as we make money off of it. But if they do it, they are commie b4stards.

[RGBVideo]

In Helsinki, gas costs about ~ €1,2 / l.
Over 4/5 of it is tax. Personally, I would go for higher taxation, if some of the neighbouring countries wouldn't have ~50% times cheaper prices.