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| Big Oil Posts Big First Quarter Profits |
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| Written by Miranda Marquit | |
| Monday, 07 May 2007 | |
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Commodity gas prices were down first quarter. So how are some big oil companies posting above-forecast earnings? With commodity gas prices lower in the first quater, one would expect big oil's earnings to be down for that same period. But the first quarter is over, earnings are in, and big oil profits are...UP. Why? The answer lies in refining. The integrated big oil companies are the ones posting the earnings. Integrated oil companies are companies that produce and refine oil and gas. So integrated big oil companies are doing quite well since they are making their profits in refining. Reuters explains big oil refining: "Refining margins have been running extremely high, mainly to do with strong demand and a lot of refinery glitches," said BMO Capital Markets analyst Jim Byrne, who has an "outperform" rating on the sector.According to Reuters, ExxonMobil's (XOM) refining and marketing business enjoyed a 50 percent boost. Its first quarter earnings rose 10 percent. The largest publicly traded big oil company in the world is posting earnings that are worthy of its stature. Another big oil company that has exceeded earnings expectations include Chevron (CVX -- first quarter earnings jumping 18 percent according to the Associated Press). And, even though Reuters poings out that Hess (HES) dropped its earnings by 47 percent, its refining and marketing profits doubled in the first quarter. Now that summer driving season is about to start, it appears that second quarter earnings for big oil should continue in line. Despite protests over climbing gas prices, Americans have shown in the past that they are unwilling to change their gas consumption habits to save money (or the environment). Therefore, there is a strong likelihood that big oil will continue to earn big profits. Disclaimer. Comments
(1)
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written by Upset Driver , May 09, 2008
How will someone that works change the way the get to work. If there is a profit that means that the consumer is being charged to much. Why can't our government and president do something about that. I have seen that the biggest reason why no one is doing anything is because our government has their pockets lined with the same money that fills the oil companies pocket.And of course consumers are fitting the bill agian. I wish for once someone would do something about it.
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