Exxon Earns Nearly $11 Billion In Q1

NEW YORK (AP) – Exxon earned nearly $11 billion in the first quarter, a performance likely to land it in the center of the national debate over high gasoline prices.

The world’s largest publicly traded company on Thursday reported net income of $10.65 billion, or $2.14 per share, in the first three months of the year. That compares with $6.3 billion, or 1.33 per share a year ago. Revenue increased 26 percent to $114 billion.

The results surpassed Wall Street estimates of $2.04 per share on sales of $112.6 billion, according to FactSet.

The quarter was Exxon’s best since it earned a record $14.83 billion in 2008’s third quarter. It comes at a time when some drivers are paying $4 or more for gas and President Obama is threatening the oil industry’s multibillion-dollar tax subsidies.

Earnings grew across the company’s business segments. Income from its exploration and production business gained 49 percent to $8.7 billion while the company’s downstream business, which includes refineries, posted a huge 30-fold jump to more than $1.1 billion.

Anticipating a strong reaction to the results from drivers and politicians, Exxon said on a company blog Wednesday that it has little control over the price of oil, which has risen to near $113 per barrel. The company also noted that less than 3 cents of every dollar it earns comes from the sale of gasoline and diesel fuel.

That may not appease many motorists, however. The national average for a gallon of gas is $3.89, about $1.02 more than a year ago. It’s above $4 in 8 states and the District of Columbia. And on Thursday, the Commerce Department said economic growth slowed sharply in the first quarter, partly because of high gas prices.

On the blog, Ken Cohen, Exxon’s vice president of public and government affairs, said the company was anticipating “the inevitable headlines and sound bites about high gasoline prices and what to do about them” after the earnings were reported.

Exxon’s huge profit followed similar results by other oil companies.

Europe’s largest oil company, Royal Dutch Shell PLC, reported $8.78 billion in first-quarter profits, up 60 percent from a year ago. BP PLC’s quarterly earnings rose 16 percent to $7.2 billion. ConocoPhillips said net income grew 43 percent to $3 billion and Occidental Petroleum Corp. said earnings climbed 46 percent to $1.55 billion.

Exxon Mobil Corp. increased earnings even though it produced less oil and natural gas liquids. Benchmark crude prices rose 20 percent from a year ago.

The company has increasingly focused on producing natural gas. Exxon expects natural gas to displace coal as the second most important fuel source within the next decade, and last year it acquired XTO Energy to become the largest U.S. natural gas producer.

Natural gas production increased 24 percent in the quarter for Exxon, but prices declined as other companies followed Exxon’s lead and rushed to develop underground shale gas deposits in North America. Natural gas prices fell nearly 16 percent from a year ago.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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  • texas heartland

    Wow, I can barely afford to go to work and all because greedy oil people…

  • RussP

    I still see more full size pickups, SUVs and high performance or luxury cars around me at stoplights than I do 40 mile per gallon economy cars; fuel prices can’t be bothering you folks too much.

  • Kelly

    RussP you only see that because thats what people had and who the heck can afford to go buy a new vehicle now, people just have to use what they have and deal with putting $30.00-$40.00 a day in it to get back and forth to work so they can hopefully pay the bills and buy food. I am sure these oil companies family and friends have no issues with that. Oh and I have a friend that is in management of Exxon/Mobil and just to let people know that people higher up in the company doesnt have to pay for their own gas, they get it for free!

    • RussP

      We’ve been having oil supply issues and price spikes since the 1970s; the most recent just a couple of years ago when gas also past $4. People are still wanting their gas hogs, whether the 4WD pickup that’s never had anything in the bed or the SUV for just mom and one kid. The most popular vehicles from many of the manufacturers are their trucks and large cars and most of the cars I’m seeing are fairly new, not old cars people can’t afford to replace.

      • RussP

        Just did a quick check and the top selling vehicles so far this year are Ford F-Series pickups (full size), Chevy Silverado pickup (full size) and coming in third is finally something a little fuel efficient; the Honda Accord. Folks like to complain about the prices but really don’t seem that concerned.

    • Elmer

      Obama does not pay for his gasoline or jet fuel, but he is always on the go.

  • Rick McDaniel

    So……where’s the windfall profits tax??????

  • Roderick Brown

    Yeah! But how much did they pay in taxes to the Federal Goverment? We seem to forget that their taxed on profits!

    • Bill O'Really

      THEY’RE taxed on profits, moron, and if you look at it, THEIR percentage is laughable.



  • CSB

    A good friend of our family is a guy in Barbados named Kyffin Simpson. He is a major player in Royal Dutch Shell for the entire Caribbean. He lives in a massive open-air one story house on the island, with a living room that is the size of a professional basketball court. These guys make huge money and live big. If you can’t beat them, join them. Start pumping (no pun intended) your money into oil company stocks and futures. It’s all going to run out one day, so you might as well get wealthy while you can. It won’t get any cheaper.

  • derek gordon

    This is Bull and no one cares, and all we can do is make smart remarks. I think there all A——-holes.

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