Apr 27, 2006 11:55 am US/Eastern
Exxon Announces First-Quarter Profits
Many Frustrated By Rising Gas Costs
PHILADELPHIA (CBS 3) ―
Exxon Mobil Corp., the world's largest oil company, reported Thursday the fifth highest quarterly profit for any public company in history, posting gains from higher oil prices that were likely to stoke the furor over outsized oil company
earnings.
Despite the 7 percent gain in earnings to more than $8 billion in the first quarter, Exxon Mobil said its earnings came in below its record fourth-quarter because all three of its business— exploration and production; refining; chemicals—didn't perform as well.
The earnings report comes amid consumer outcry in the U.S. about soaring gasoline prices. The average retail price of gasoline in the U.S. is now $2.91 a gallon, or 68 cents higher than a year ago.
Many area business and consumers are becoming increasingly frustrated as they are forced to pay out more with rising gas prices and believe the government needs to step in.
"Directly I blame the government for allowing the oil company to do what they are doing," said working mom Edam Sasso.
Sasso, like many others, are finding it difficult to keep up with their day to day activities while paying higher gas costs.
Termini Brothers Bakery said half of their suppliers have added a gasoline surcharge, which could mean even more added expense for consumers.
"We're going to have to make changes, whether it's the back of the house or the front of the house by raising prices," said Vincent Termini Jr.
Wednesdy, ConocoPhillips, the nation's third-largest oil and gas producer, said its profits rose 13 percent to nearly $3.3-billion.
Chevron Corporation is due to report tomorrow. The three together are expected to report earnings of more than $16-billion dollars in the first-quarter.
Exxon Mobil, the world's largest publicly traded oil company, earned a record of more than $36-billion last year, and nearly $11-billion for the fourth quarter alone.
A flap erupted earlier this month upon word of a nearly $70-million compensation package and $98-million pension payout given Exxon Mobil's former C-E-O Lee Raymond.
The average retail price of gasoline in the U.S. is now $2.91 a gallon, or 68 cents higher than a year ago. It also comes as Washington lawmakers are looking to appease consumers with various proposals to make big oil companies pay more taxes.
In January, Exxon posted the highest quarterly and annual profits of any U.S. company in history: $10.71 billion for the fourth quarter of 2005 and $36.13 billion for the full year.
Exxon said it invested $4.8 billion in capital and exploration projects, a 41 percent increase from 2005.
"In the first quarter of 2006, the results of our continuing long-term investment program contributed to a 5 percent increase in production," Exxon chief executive said in a prepared statement.
Exxon also said it returned $7 billion to shareholders through dividends of $2 billion and buying back $5 billion worth of shares.
(© 2006 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
