Exxon Mobil sets profit record

gldstwmn · #1 01-30-2006, 01:09 PM

http://money.cnn.com/2006/01/30/news...arns/index.htm

Nation's No. 1 oil company reports larger than expected jump in 4Q income to cap record year.
January 30, 2006: 10:17 AM EST

NEW YORK (CNNMoney.com) - Exxon Mobil Corp. set U.S. records for annual and quarterly profits Monday as it easily topped fourth-quarter earnings forecasts.

The nation's largest oil company reported net income in the fourth quarter of $10.7 billion, or $1.71 a share, compared to $8.4 billion, or $1.30 a share, a year earlier.

Excluding items, Exxon Mobil earned $10.3 billion, or $1.65 per share, topping a consensus forecast of $1.44 a share from analysts surveyed by earnings tracker First Call. It also topped the record for quarterly profits it set in the third quarter, when it earned $9.9 billion.

For the year the company earned net income of $36.1 billion, or $33.9 billion excluding special items. That's up 31 percent from the $25.9 billion it earned on that basis year earlier.

Exxon Mobil's 2005 net income for the year comes to $1,146 a second. That per-second profit is enough to pay for gas for the average American vehicle to be driven 10,294 miles, at current gasoline prices.

While oil and gasoline prices in the fourth quarter were down from the levels seen in September, that barely dented Exxon Mobil's top line. Revenue for the quarter was $99.7 billion, up from $81.9 billion in the year-earlier quarter, and down only 1 percent from the $100.7 billion in revenue in the third quarter. Full-year revenue came to $371 billion, or just over $1 billion a day.

The Exxon Mobil earnings statement was almost defensive about the record profit.

"There is a great deal of public interest in global energy prices," said a statement attributed to Exxon Mobil Chairman Rex Tillerson. "We recognize that consumers worldwide want and need reliable supplies of affordable energy -- to fuel their vehicles, light and heat their homes and run their businesses. Our strong financial results will continue to allow us to make significant, long-term investments required to do our part in meeting the world's energy needs."

As to the Exxon Mobil's earnings record, First Call could not definitively say what was the largest annual profit on record. But it appears the previous mark was held by Media One, the cable television operator that eventually became part of Comcast. It posted net income of $26.3 billion in 1998.

But most of that profit came from accounting of a split between cable and telephone units that took place over the year. Media One's income from continuing operations that year came to only $1.4 billion.

The largest operating income may before this year may well have been Exxon Mobil's $25.9 billion in 2004.

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