October 27, 200620 yr That is the Record profit by Chevron this year! http://biz.yahoo.com/ap/061027/earns_chevron.html?.v=8 AP Chevron 3Q Profit Soars to $5 Billion Friday October 27, 12:50 pm ET By Michael Liedtke, AP Business Writer Chevron Corp.'s 3rd-Quarter Profit Soars to a Record $5 Billion SAN RAMON, Calif. (AP) -- A $5 billion third-quarter profit from Chevron Corp. lifts the cumulative results of the five major oil companies that reported July through September earnings this week to more than $31.5 billion. The industry benefited from oil prices that averaged more than $70 a barrel, as well as its ability to earn more money from gasoline production and sales. Chevron's profits grew the fastest among its peer group, rising a whopping 40 percent from a year ago. Chevron's results, released Friday, marked the third time in the past year that its quarterly results have hit a new high. The third-quarter earnings were also far above analyst estimates, boosting Chevron shares by 75 cents to $68.25 during midday trading on the New York Stock Exchange. The boom times at San Ramon-based Chevron and other major oil companies exasperated motorists and politicians as gasoline prices remained above $3 per gallon in many parts of the country before a recent decline eased some of the economic pain and frustration. But the downturn in energy prices hasn't sapped the financial vigor of Chevron and its industry brethren. Exxon Mobil Corp., the only U.S. oil company larger than Chevron, posted a third-quarter profit of $10.5 billion -- the second highest in its history. Chevron's earnings of $5.02 billion, or $2.29 per share, for the three months ended in September compared with net income of $3.59 billion, or $1.64 per share, at the same time last year. Chevron boosted its earnings despite a slight decline in its revenue, which totaled $54.2 billion. That was down from $54.5 billion last year. The performance topped the average estimate of $2.03 per share among analysts surveyed by Thomson Financial. While more productive refineries contributed to Chevron's upturn, Oppenheimer & Co. analyst Fadel Gheit said the company reaped its biggest gains at the gasoline pumps. "They really cleaned up there," Gheit said. Without providing specifics, Chevron Chief Financial Officer Steve Crowe confirmed during a Friday conference call that the company's profit margins were higher at the gasoline pump than at its oil refineries. "That shouldn't be terribly surprising," Crowe said, citing the "stickiness" of gas prices as he discussed the results with industry analysts. Chevron's profit from refining oil and selling gasoline nearly tripled during the latest quarter. Those operations earned $1.4 billion this year compared to $573 million last year. The turnaround was especially dramatic in the United States, where Chevron's refining profit surged to a nearly six-fold improvement. The company would have made more money last year if extensive damage caused by Hurricane Katrina and other major storms in the Gulf of Mexico hadn't shut down one of the company's biggest refineries in September and October. Despite the improving fortunes of Exxon and Chevron, the combined third-quarter profit of the world's five largest oil companies tapered off. Exxon, Chevron, ConocoPhillips, BP PLC and Royal Dutch Shell PLC earned a total of $31.6 billion in this year's quarter, a 4 percent decrease from $32.9 billion a year ago. Those companies still remain well ahead of 2005's record-setting pace. Through the first nine months of this year, the companies earned a combined $94.5 billion, an 11 percent increase from $85 billion last year. The future months are likely to be less fruitful with oil prices hovering around $60 per barrel, down from a mid-July peak of $78.40. "As far as record earnings are concerned, the game is over," Gheit said. Analysts, on average, expect Chevron's earnings in the fourth quarter to be $1.81 per share -- about 20 percent less than the third quarter. The fourth-quarter forecast also represent a slight decline from Chevron's profit during the final three months of 2005. News of Chevron's latest record profit comes less than two weeks before Californians vote on an initiative, Proposition 87, that would impose special tax of up to 6 percent tax on oil produced in the state to finance alternative fuel research. As California's largest oil company, Chevron has spending heavily to defeat the proposed measure, arguing that it would drive up gas prices. The initiative's backers, including former President Bill Clinton, are touting the tax a way to lessen California's dependence on foreign oil. If the initiative passes, Chevron expects to pay about $200 million in annual taxes, Crowe said. Apparently worried its record third quarter might help rally support for the proposed tax, Chevron has been emphasizing its financial commitment to help find more oil and develop other energy sources. The company said it has invested at least $1 billion in 20 major projects, including a recently discovered petroleum pool off the coasts of Louisiana and Texas that could turn into the nation's largest oil field. Chevron said it also has spent more than $1.5 billion on the quest for alternative energy since 2000.
October 27, 200620 yr That's great, I can sleep better at night because I was worried the oil companies weren't swimming in ridiculous prosperity.
October 27, 200620 yr What was the profit margin? What % did they make over costs? How much was fuel, how much was new technology? What does that make their PE ratio? Or EPS? Is it record for Chevron only? Would it have been a record for Chevron + Texaco + Unocal?
October 28, 200620 yr That's great, I can sleep better at night because I was worried the oil companies weren't swimming in ridiculous prosperity. :lol
October 28, 200620 yr What was the profit margin? What % did they make over costs? How much was fuel, how much was new technology? What does that make their PE ratio? Or EPS? Is it record for Chevron only? Would it have been a record for Chevron + Texaco + Unocal? Don't forget: How much of this money is going into the pockets of politicians?
October 28, 200620 yr Nothing wrong with that, we live in a capitalist society. energy isnt exactly something that should be used as part of the 'pure' capitalist society we live in. it should be treated as any other public utility.
October 28, 200620 yr What was the profit margin? What % did they make over costs? How much was fuel, how much was new technology? What does that make their PE ratio? Or EPS? Is it record for Chevron only? Would it have been a record for Chevron + Texaco + Unocal? Don't forget: How much of this money is going into the pockets of politicians? So your answer is that you don't know, but want to blame folks anyhow.
October 28, 200620 yr What was the profit margin? What % did they make over costs? How much was fuel, how much was new technology? What does that make their PE ratio? Or EPS? Is it record for Chevron only? Would it have been a record for Chevron + Texaco + Unocal? Don't forget: How much of this money is going into the pockets of politicians? So your answer is that you don't know, but want to blame folks anyhow. Exactly. :thumbup
October 30, 200620 yr Nothing wrong with that, we live in a capitalist society. energy isnt exactly something that should be used as part of the 'pure' capitalist society we live in. it should be treated as any other public utility. I agree with you completely, however that's up to the government to regulate. You can't fault the oil companies for running a successful business with one goal and that's to put more money in the pockets of their shareholders. If the oil companies are swimming in absurd profits while the rest of America is suffering, then that's where the government needs to step in, but you can't fault the oil companies. Fault your elected officials.
October 30, 200620 yr Nothing wrong with that, we live in a capitalist society. energy isnt exactly something that should be used as part of the 'pure' capitalist society we live in. it should be treated as any other public utility. I agree with you completely, however that's up to the government to regulate. You can't fault the oil companies for running a successful business with one goal and that's to put more money in the pockets of their shareholders. If the oil companies are swimming in absurd profits while the rest of American is suffering, then that's where the government needs to step in, but you can't fault the oil companies. Especially when the records include revenue from other companies they absorbed. Chevron + Unocal + Texaco. Royal Dutch + Shell. BP + Amoco. Etc.
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