NEW YORK (AP) - Exxon Mobil Corp. said Monday its annual income of $19.3 billion was the smallest in seven years as higher oil prices squeezed profit margins in its refining business.
The results for the world's largest publicly traded oil company reflect the volatility in the price of crude oil over the past years and the impact of the global recession.
When oil spiked above $147 a barrel in mid-2008, Exxon became the king of corporate profits, setting ever-higher marks for earnings by a U.S. company. Then oil prices plummeted late last year, and Exxon suffered a yearlong hangover that included the smallest quarterly earnings in several years.
The Irving, Texas company finished 2009 with a 23 percent decline in fourth-quarter income. Exxon earned $6.05 billion, or $1.27 a share, for the final three months of 2009. That compares with $7.82 billion, or $1.54 a share, a year earlier. Revenue increased 6 percent to $89.8 billion.
Exxon now has posted lower profits for five straight quarters after setting a record of $14.83 billion in the third quarter of 2008.
12. Poor babies. They sure raked it in summer before last.....helped
start the recession, imo. Anyway, if they want profits they best diversify and start building solar panels and wind turbines. Get busy big oil! Get off you cans and start helping humanity for a change!
That means the money gets recirculated into the economy and not in to the pockets of a few people. More people working and less chance of an environmental problem caused by poor maintenance on a facility.
1) The systematic collapse of the U.S. economy is obviously going to make a big dent in the biggest consumer market of oil on the planet, and as such those companies supplying it.
2) After driving gas prices through the roof a while back, in tandem with a collapsing economy, Americans woke up and changed their driving habits big time, suddenly consuming far less gas than they used to. This fundamental shift in the American psyche as it pertains to their cars and how they use them, resulted in an over-supply of oil on the market that the cartels haven't been able to recover from. Prices remain very low and even OPEC cutting production hasn't helped them much.
They got greedy and sabotaged their own market. Serves them right! Just like most big corporations did over the past few decades of so-called "Free Trade", firing well-paid American workers, and now there's no market left for them either. In a manner of sense, they fired their own best customers.
Just goes to show how this short-term-profits mentality of big corporations is ultimately self-destructive to their own well-being over the long term.
They killed their own markets over the long term in the interests of rapacious profits in the short term.
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