Exxon’s profits high with increased energy prices

Best Growth Stock – Exxon Mobil Corp. released its quarterly profits which turned out to be a 2 year high quarterly profits since there was a high demand for energy and thus boosted the oil and fuel prices.

The net income for the fourth quarter turned out to have risen to $9.25 billion or $1.85 a share as compared to $6.1 billion or %1.27 a share in the previous year. Per share earnings rose by 25 cents which were more that the six analyst’s surveys had estimated at Bloomberg.

In fourth quarter the output of oil and natural gas of Exxon’s well climbed by 19% which was equivalent to 4.97million barrels a day. This was recorded as the highest in the 128-years of the company. Refining sustained the loses incurred last year and rose in the market as the demand for diesel, gasoline and jet fuel rose by 3.5% thus broadening the margins processing the crudes into fuel.

And analyst, Brian Youngberg, at Edward Jones in St. Louis stated that refining would turn out to be a money losing business for everyone a year back. But now that the economy is rebounding and recovering in a good pace refining seems to have taken a healthy place in the economy and thus refining is now making profits. Exxon hiked by 1.1% or 88 cents to $79.87 on 31st Jan. The stock prevails 13 holds and one sell and also has 10 buy ratings from the analysts.

Exxon’s sum total revenue was $383.2billion and the fourth-quarte sales of the company rose by 17% to $105.2 billion. The total revenue figure of the company exceeds the GDPs of countries like Thailand, Denmark or Chile.

Last year the expenditure on liquefied gas plants, new oil platforms, exploratory drilling and refinery repairs hopped by 19% to $32.2 billion. The company also stated that Exxon now plans to buy back its shares in this quarter which amounted to $5billion, after they spent that amount on repurchasing the shar3s in the fourth quarter.

Exxon, the world’s largest company bought XTO Energy as a part of expansion of Chief Executive Officer Rex Tillerson’s natural gas portfolio. This investment made its biggest acquisition since 1999. They also signed an accord of $1billion in the previous week by joining Russia’s OAO Rosneft in order to get access to drill crude from the Black Sea.

As a result of acquisitions such as Ellora energy, which is a closely-held operator in the shale region of Haynesville, and the XTO deal, Exxon’s gas production increased three times in US. Gas amounted to 49% of Exxon’s global production in the duration of last three months of 2010 as compared to 43% of the last year.

Chevron Corp. which is the second largest energy company in US set a record in fourth quarter for its company as their profits from the last three months of 2010 had climbed up to $5.3 billion i.e. by 72%.

Whereas ConocoPhillips, which is the third largest oil company in US stated that its fourth quarter profit rose by 59% to $2.04 billion.