Exxon profits up 41 percent


Exxon Mobil saw net income increase 41 percent as higher oil prices offset a 4 percent drop in production.

The oil super major reported net income of $10.3 billion, of $2.13 per share, compared to $7.5 billion, or $1.44 per share for the same quarter last year.

The company repurchased $5 billion in shares during the quarter, while dividend per share was up 7 percent for the quarter to 47 cents.

Exploration and production earnings were $8.4 billion, up $2.9 billion from the third quarter of 2010.  Higher liquids and natural gas sales increased earnings by $3 billion.

Liquids production was down 172,000 barrels per day to 2.2 million barrels, while natural gas production was flat at about 12.1 billion cubic feet per day.

Refining profits were up $419 million to $1.6 billion, with $1 billion of that figure coming from better refining margins. In the U.S. refining profits were up $646 million to $810 million.

Tom Fowler

58 Responses

  1. ntangle says:

    JohnD – Thought you might’ve meant a metric such as A/T ROI and accidentally called it profit margin. The lower % value for net profit margin (ie., 8.5%) just makes your point appear all the more valid.

  2. JohnD says:

    ntangle, you are correct. What I calculated was ROI, not profit margin. Sorry about that.

  3. Tommy says:

    Imagine that, a well run company company full of tens of thousands of hard-working people making a profit for the extensive efforts. Keep up the good work Exxon, there is a reason why the rest of us in the industry are working to model your efforts in running an IOC.

  4. Greg says:

    Keep it up exxon! All i use is exxon gas and oil mobil one rocks !

  5. Mike says:

    I for one am very happy their profits are up. All of you oil company hating libs can ride your bicycles to Starbucks and have a grand old time bashing legitimate companies.

  6. hgnis says:

    Bring out the pitchforks ye simple minded villagers! Leteth us slayeth the oil beast on behalf of all the hungry Democrat babies sitting in DC!

  7. rto says:

    ‘…You’re calling this a hit piece? It’s a bare bone recitation of the results as reported. What on earth are you talking about?…’

    Tom – reporting profits – “only” – are (IMHO) only half the story…..and “fuel for WriterDude” – and others, to spread their misguided hate. If it were not for the taxes paid by the ExxonMobil’s in this country – we’d be sunk.

    The left, as a whole, have targeted the rich and successful in this country to a sick science of vilification – and fail to appreciate or mention the contribution these companies make to us all. The jobs they create directly or indirectly are enormous.

    The wealth “the ExxonMobil’s” bring not only to themselves, but to the Federal government, State governments – the engineering firms, sub-contractors, vendors, distributors, fabricators, banks, leasing agencies, bondholders, shareholders and communities as a whole – are but a footnote…..if that….never to be mentioned, and seldom acknowledged.

    That is what I’m talking about.

  8. ProfesorC says:

    Mr. Fowler,

    You wouldn’t be accused of a hit job if you had reported that XOM posted profits of 8.5% which is highly factual and not very sensational. Instead, you chose to tout the 41% increase over their very modest profits last year.

    You could also have chosen to put their profits (as a percentage) in context next to, say, Apple?

    I realize that this kind of balance isn’t part of modern journalism, but at least have the intelligence not to object when you get called out on it.

  9. ChemE says:

    XOM is a publicly traded company….if the regular Joe Schmoe wants a piece of the profits all they have to do is purchase stock….why not stop whining about “large” profits and invest in a successful and disciplined company instead of ones that ask for a bailout.

  10. Moreyon says:

    One blogger wrote: Love those dividends.

    The truth of the matter is Exxon’s dividends are a huge disappointment compared to the dividends offered by several (not all), other big oil companies.

    While so many people were whining about oil profits and the price of gasoline — which isn’t determined by the oil companies, it largely determined by the price of oil and, by extention, OPEC — insurance companies (AIG), morgage companies (Fannies), investment banks, drug companies (greater profit margins and markups than oil companies as well as many critical, tragic drug shortages) and dozens of other companies which are shifting work overseas have been destroying the US economy.

    I loved the days of $1 gasoline/gallon, but I’m smart enough to know 99.999% of our country’s problems have absolutely nothing to do with big oil.

    Americans should be glad we have an industry that is making money and not begging for bailouts. And paying quarterly dividends, however small, to their owners, many of whom are Americans.

    Sure the government could tax the oil companies more, but there’s the old and largely true adage: Businesses don’t pay taxes, customers do.

    In other words, businesses pass their taxes along to the customers/consumers who ultimately pay.

  11. jack says:

    so! BIG DEAL!!!!

    the us government will take in almost 2.5 trillion dollars this year and they did nothing to earn it other than confisicate if from companies and individuals that actually earned it.

  12. PostShooter says:

    WriterDude, Indeed why would companies make decisions to benefit the US? That’s not what they are in business for. They are in business to make decisions that benefit the company and it’s investors. Period. Nothing personal. It’s just business.

    tboyinhouston, Why have the middle class and the poor stagnated? Because others have made successes of themselves? What, then, is MY motivation for becoming a success? I hope you never come into money. Because, if what you say is true, the masses will never be happy. They’ll be coming for you one day.

  13. Contaminated Gulf says:

    And companies with these massive profits still lining their own pockets and not hiring in the US.

  14. jplafon says:

    XOM – a Great American company…very well run, disciplined and profitable. Its production operations and capital projects employ 100 of thousands directly and indirectly in blue collar and white collar jobs. Yet all you will ever see are Demwits forever promoting bloated out dated auto manufacturing industry. American industry is strong in Oil & Gas, yet they are forever vilified. XOM’s Capital budget has been north of 20 billion (closer to 30 billion)/year for almost a decade. This should be celebrated.

  15. Joseph Kubica says:

    They need some more help from Congress – there’s just no way to launder and escape taxes on that amount without help

  16. pacificoil says:

    congratulations WriterDude…you’ve read The Prize – a great book. But reading that book hardly makes you an expert on how things work. Your suggestion to read one of the more comprehensive, outwardly discussed, well received pieces of literature written on this industry is a good suggestion – if you were talking to people with no base knowledge of the oil industry. This is FuelFix…we’ve all read that book.

  17. rto says:

    ‘….Here are a few more numbers to consider.

    In 2010, our total tax expenses in the United States were $9.8 billion, which includes an income tax expense of more than $1.6 billion. That $9.8 billion in taxes exceeded our 2010 U.S. operating earnings of $7.5 billion.

    And over the past five years, we incurred a total U.S. tax expense of almost $59 billion, which was $18 billion more than we earned from our U.S. operations during the same period….’


  18. rto says:

    ‘…..Another number you won’t hear in Washington, which also puts our earnings into context, is our earnings relative to our sales. During the quarter, we made about 9 cents for every dollar of sales, which is about average for U.S. industries.

    We earned $10.7 billion in worldwide earnings on worldwide sales of $114 billion.

    That’s about half (or less) of what companies in pharmaceuticals or computers make, just to name a few. But strangely, there’s not much talk about reducing their tax deductions….’

  19. td57 says:

    RANDY the government gives back to the people.Exxon is taking from the people.Until gas went to over $4.00 a gallon economy was rolling along.These people only give back to there employees.Thats a small faction in a big picture.They do not care about America or its people.One day they will be trying to explain to God why they did what they did.

  20. rto says:

    For the total picture (and what this hit piece failed to mention) of the XOM taxes vs. earnings picture in this country……

    ‘….During the first quarter of this year, our U.S. operating earnings were $2.6 billion. The rest of our earnings – more than $8 billion – came from operations in more than 100 countries worldwide.

    Here’s a number you won’t hear in Washington:

    During the first quarter, on those U.S. earnings of $2.6 billion, we incurred tax expenses in the United States of $3.1 billion.

    That’s right – our U.S. tax bill was higher than our U.S. earnings….’


    Let the Dimwits keep it up – and XOM will take that tax money they PAID……and MOVE!!

    • Tom Fowler says:

      About this part of your comment “(and what this hit piece failed to mention)”
      You’re calling this a hit piece? It’s a bare bone recitation of the results as reported. What on earth are you talking about?

  21. whoop says:

    Liars. Net profits were not up 41%, net revenue was. There’s a big difference.

  22. Randy says:

    I’m tired of people saying this tax and that tax is paying for infrastructre so we need it. We need gas taxes to pay for roads. We need Obamas stimulous to pay for roads. We need cigarette taxes to pay for roads. Wake up people, you are being lied to. The taxes are not being spent on infrastructure. Taxes are near record highs and infrastructure conditions are at record lows.

  23. subseaguy says:

    WriterDude… You must sell tennis shoes for a living because you clearly don’t know squat about the oil business. How about sharing your source with the rest of us?

  24. Ridge says:

    October 27, 2011, 10:42 AM
    Why don’t people want America and its companies to succeed anymore?

    Excellent question. Pretty much says it all.

  25. ser182 says:

    The problem is the price of gas it self. When the country is at its lowest point gas prices rise. So who would not be mad??? And please stop the President Obama talk. None of the Big three Oil companies pay the correct tax. It has been stated before. Libya and Iran gas is .14 cents a liter there to the public. A very big difference from the oil we pulled from our own waters still reflects the price that OPEC places on crude. the metrics are wrong. So it will never change. If we get a Repub in the White house it will be the same. They will cut social services for our people and we will be no different than any other third would country that does nothing for their people.

  26. PipelinePete says:

    WiterDude: If what you say is true, why don’t you report it to the Texas Railroad Commission. Oil production in Texas is regulated by the commission and monitored for compliance so that taxes can be assessed and collected on every barrel produced. They also monitor the amount of oil sold from the lease.I’m sure they would appreciate your help in exposing errors in their monitoring system.

  27. tboyinhouston says:

    Postshooter, you completely misunderstand. The middle class and poor incomes have stagnated for the last 20 years while the top 1% incomes have soared. The income gap has reached gilded age levels. People want companies to succeed but when that success is at the expense of the masses then you will get unhappiness.

  28. tejanoneck says:

    the oil guy is a saint compared to the banker

  29. tboyinhouston says:

    Let’s lower their taxes some more

  30. ItsMine says:

    Okay, so I’m going to get something like $1.25 dividend per share, Rex gets $100 million and a custom made golf cart. I sense something is wrong here.

  31. WriterDude says:

    PostShooter: The top 500 American companies make about 45% of their income from overseas. This being the case, why would they make decisions solely to benefit the US? Also, can they actually be considered American companies anymore? If corporations are “people” half of them are foreigners on American soil.

  32. WriterDude says:

    JohnD: Oil companies regularly under-report the amount of oil taken from a well in order to avoid royalties. What makes you think they won’t hide profits?

    Read “The Prize”

  33. PostShooter says:

    Why don’t people want America and its companies to succeed anymore?

    I always thought accomplishing your goals was supposed to be rewarded? Now, if you do well, you’re to hang your head in shame and hand your profits over to the government for re-distribution to those who would rather watch TV than work.

    I’m sorry you didn’t win a trophy in the Pinewood Derby when you were a kid. It really messed you up.

  34. ntangle says:

    JohnD – Profit margin is defined as the ratio of profit / gross revenue. Net margin would be the after tax profit / gross revenue. Rather than dividing by expense as you said.

    So XOM’s 2nd Q net profit margin would be 8.5%. Not 11%.

  35. Captain Cook says:

    Glad to see at least one company is making a profit, despite owebummer’s failed attempt to socilize the country. Now Exxon, buy up those nasty old buildings around your headquarters in downtown Houston and give something back to the community by improving the downtown area around your long-time corporate headquarters. Build a nice parking garage for all your employees and spruce up the Petroleum Club.

  36. Greg says:

    Wouldn’t it be easier if Obama did a Chavez and took over the oil companies?

  37. ErIc says:

    SaltWC: I want the government to fund our homeland defense, a frugal safety net for our least fortunate, a judicial system, and… Not much else. I don’t want our tax dollars spent beyond our borders, other than for the bare minimum to maintain embassies. We should bring almost all our military home, line it up along our borders. The feds should privatize social security, get out of the entitlement business, get out of education, get out of regulating, regulating, regulating… Yes, you guessed it, I’m a big Ron Paul fan. He seems to understand our government is broke, corrupt, and an increasing threat to our economy and standard of living. He seems to feel it’s unethical to buy something you can’t afford– to steal, in other words.

  38. Baroccoli O says:

    Excellent job Exxon – love those dividends – I want to be a 1 percenter too!

    Go XOM!

  39. NeutralCarbon says:

    Oh boy, you guys are in big trouble! Wait ’till Obama hears about this…an American company exmploying tens of thousands of Americans and supporting the stock funds of millions of Americans making money!! HOW DARE YOU!!

  40. JohnD says:

    WriterDude, you obviously aren’t in the oil industry and haven’t done any research into the problem. US taxes and royalties on oil production are some of the lowest in the world.

    And Exxon declared all of its income as required by the SEC. The penalties for not doing so are somewhat fierce; the last O&G company to try to hide its income was Enron – perhaps you’ve heard of them…

  41. JR says:

    And Exxon Mobil’s 100,000+ employees are very greatful to be working for a profitable company.

    Let’s take (or tax) ALL of the profit out of XOM, and see how many jobs are lost.

  42. Common Sense says:

    Awesome!!! More much needed revenue for state and federal governments!
    Before you make ignorant remarks bashing big oil, etc, just remember ExxonMobil pays the most taxes of any corporation in the USA…….based on their big profits.

  43. Ridge says:

    Next thing you know, sports teams will have to start apologizing for winning by too much, even though it is their purpose is to win.

  44. WriterDude says:

    Oil companies have been shifting profits upstream for years. This way, the producer companies make more profit,(refineries less) and avoid paying foreign taxes or pay lower taxes overseas, then use the “Foreign Tax Credit” to avoid paying US taxes. Such is the business of being a multi-national corporation – hiding profits offshore and avoiding taxes there and here.

    Exxon is the largest corporation in the world. It is actually made up of a combination of companies orginally split up from Standard Oil. The Rockefeller legacy lives on.

    I suspect Exxon made quite a lot more money than claimed. Even in the article above, the oil company made more than 10 times the refiner.

  45. SaltWaterCroc says:

    Eric – how did you get to DC? Government funded roads, or government funded air? Amtrak? You do realize government grew under Bush, and under Perry (here in Texas)? What do you not want the government to fund? Everything but your pet projects? Exxon pays less in taxes on it’s profits percentage wise than the folks who work their gas stations.

  46. JohnD says:

    Here are the facts about oil company profits:

    Exxon spent $106 billion to make that $11 billion income, which gives it a profit margin of 11%.

    Chevron spent $56 billion to make $8 billion, which gives it a profit margin of 14%.

    Shell spent $106 billion to make $9 billion, which gives it a profit margin of 9%.

    Oil companies make billions only because they invest hundreds of billions.

    Now compare that with Coca Cola, which spent $10 billion to make $2 billion, for a profit margin of 20%. Or with McDonald’s, which spent $5 billion to make $2 billion, for a 30% profit margin. Or with Visa, which spent $1 billion to make $1 billion, for a profit margin of 100%.

    Compared to them, the oil companies don’t look so bad, do they?

  47. NoOccupationHere says:

    I was going to start an Occupy Katy Rally against Big Head Corp. and The Hairy Monsters but everybody evacuated.

  48. TransAmer99 says:

    Que the congressional investigation (again). If you don’t like the huge profit numbers oil companies report, then adjust your energy appetite. Oil companies, on average, earn less than ten cents per gallon sold. On a $3 gallon, that’s a 3% profit. Compare that to a pair of sneakers (50% profit) or pharmaceuticals (up to 70% profit). And if you don’t like gas selling at $3/gallon, what about milk? It takes a lot of science to find oil, but any preschooler can tell you where to find all the milk you’d ever want.

  49. ErIc says:

    And look what the government’s wasting all that money on! I happen to be in DC today, where housing prices have been going UP. Amazing. I pray 2012 will bring us some relief from these statists and their corrupt confiscation and squandering of wealth.

  50. ntangle says:

    Randy – Not a basher, but I prefer fairness to hyperbole. I’m an XOM stockholder too. But the state + Federal excise taxes you mentioned build roads on which we use that gas. The major IOC’s make the lions share of their profit on producing crude, not by marketing gasoline as you imply. To the extent IOC’s production profits are foreign, they can pay taxes in those countries instead of this one. So it can be to their advantage to show their profits elsewhere when possible.

  51. Egon says:

    Congratulations to EXXON. Legal, honorable profits such as this indicate that you have made people happy. I know I am happy, driving in my car fueled by EXXON gasoline. Keep it up!

  52. robert says:

    Oh the gov does nothing huh? Those are mostly road taxes. Its what builds and maintains highways! And how about defense spending in the Mideast and the protection of oil flows?
    You and I pay more income tax than Exxon has of late. All tax shenanigans and loopholes. And lets also recognize whats going on in the deepwater Gulf on Fed leases. Zero royalties paid! So the majors drain out +100 mil year hydrocarbon legacy for nothing paid in!

  53. Wes says:

    Randy you are absolutely right and if people hate the fact that big oil makes a handsome profit, they will hate it even more when big oil looses year after year. Oil drives our economy one way or the other.

  54. rat618 says:

    And without that $0.48 roads would be worse than they already are. Right wingers want to privatize everything, if that happens who will build the roads, sewers, etc? We will have little enclaves with services but connections between them will be non-existent. The oil companies actually need to help fund government so the infrastructure can be built, without it how much gasoline would Exxon sell?

  55. mr. stretchy says:

    You tell it like it is Randy! And did you hear that Rex Tillerman will have to move into a smaller home due to the hard times? He is moving from a 50,000 sq ft mansion to one that is onlt 49,000 sq ft. Very sad indeed!

  56. mr. stretchy says:

    It’s a lie! Oil companies are really hurting and are on the verge of collapse! We need to give them as many tax breaks as possible and let them drill anywhere they want for oil. And we need to allow them to pay no income tax on corporate profits. Then they will hire like crazy and sell oil for under $1 a gallon again.

    My name is (insert any one of these) Rick Perry, Herman Cain, Ron Paul, Mitt Romney, Michelle Bachman and Rick Santorum and I approved this political message!

  57. Randy says:

    here come all the big oil bashers looking at the big profits. Before you make your “big oil” is evil comments, think about it this way… Exxon makes $0.02 profit per gallon of gas. The government (local, state, and fed) take, on average $0.48 for doing nothing. If you hate big oil, you should really hate big govement.