Post by Steve Gardner on Feb 2, 2008 1:17:32 GMT
Surprise! It's the oil companies.
Just a few days after learning that the banks were in deep shit, we can at least take some comfort from the knowledge that, as we struggle to meet our heating bills, the oil companies are doing very nicely, thank you.
Now, if our leaders had business interests in the energy sector, these reports might be irritating. Oh, wiat a minute...
Source: BBC
Source: BBC
Source: BBC
Just a few days after learning that the banks were in deep shit, we can at least take some comfort from the knowledge that, as we struggle to meet our heating bills, the oil companies are doing very nicely, thank you.
Now, if our leaders had business interests in the energy sector, these reports might be irritating. Oh, wiat a minute...
Source: BBC
Shell sets new UK profits record
The Anglo-Dutch oil firm Royal Dutch Shell has reported annual profits of $27.56bn (£13.9bn), a record for a UK-listed company.
Much of the rise in profits has been attributed to rising oil prices, which currently stand at about $91 a barrel compared with $57 this time last year.
But there is concern among analysts that Shell has delayed publishing figures showing its oil reserves.
Profits, measured by current cost of supply, beat a 2006 record of £12.9bn.
Suspicious traders
The oil reserves figure, which shows whether Shell found enough oil in the ground to replace the amount it was taking out, will not be published until the spring.
"The market really has taken this to imply that the figures aren't going to be great," said Nick MacGregor, an oil analyst from Redmayne Bentley.
"If they were that good Shell would be telling the world about it now."
'Satisfactory results'
Shell shares, which edged 0.1% higher on Thursday, are listed in the UK and the Netherlands, while the company's headquarters are in The Hague.
It reports its profits figures in dollars because oil is priced in the US currency.
In dollar terms its earnings are up 9% on the previous year.
It has set its dividend at $0.36 per share for the last three months of 2007, which is up 11% on the same period of 2006.
"Overall these are satisfactory results," said Shell's chief executive Jeroen van der Veer.
"We made good progress in 2007, launched new projects upstream and downstream, and achieved exploration successes."
Windfall tax
Some unions have objected to the level of Shell's profits at a time when consumers and businesses are having to cope with the effects of high oil prices.
Unite's joint general secretary Tony Woodley described the level of profits in the oil industry as, "quite frankly obscene".
"Shell shareholders are doing very nicely whilst the rest of us, the stakeholders, are paying the price and struggling."
Mr Woodley is calling for a windfall tax on oil companies similar to the one imposed on privatised utilities when the Labour government came to power.
The oil companies have stressed that little of their profits come from petrol forecourts, with the majority of the price paid at the pump already going straight to the government.
Additional taxes on their UK operations have already been imposed, with special taxes on the revenue they make extracting oil and gas from the North Sea.
Source: BBC
Exxon Mobil reports record profit
The world's largest publically listed company, the oil giant Exxon Mobil, has reported $40.6bn (£20.4bn) net profits during 2007, a record for a US company.
Net profits surged to $11.66bn during the October to December quarter, also a record, up from $10.7bn a year earlier.
The profits were buoyed by soaring global oil prices which briefly hit $100 a barrel in December.
On Thursday, Anglo-Dutch rival Royal Dutch Shell saw $27.56bn annual profits, a record for a UK-listed firm.
Future production
"Their foreign operations did extremely well. That's where they beat the street," said James Halloran, an analysts at National City.
But some analysts said looking ahead the issue of production could pose a problem.
Chris MacDonald at WHG Funds said: "If they are spending $21bn a year on capital expenditure and they can't grow production....It does not bode well for the industry in general."
Exxon lost assets in Venezuela last year when the government took control of oil projects owned by overseas companies.
But that was offset by increased output from fields in the North Sea and Qatar and overall production was up 1% in the quarter.
In a statement, Exxon Mobil Chairman Rex Tillerson said: "Our long-term investment program in projects, often far from major consuming nations, continued to provide resources essential to the increasingly interdependent global energy supply network".
Shares closed down 0.5% in New York at $85.95
Source: BBC
Chevron reports surge in profits
Record oil prices helped Chevron deliver a jump in profits, despite problems at its refining business.
Profits at the second biggest US oil firm rose 29% to $4.88bn (£2.47bn) in the last three months of 2007.
That was despite a $55m loss at its refining, marketing and transportation unit, which the company blamed on customers buying less petrol.
Earlier on Friday Exxon Mobil saw a quarterly profit of $11.7bn, and annual profits of $44.6bn - both new records.
Big projects
Oil and gas production fell 1.6%, but record oil prices more than compensated for that decline.
The company expects oil and gas output to rise 1.8% in 2008.
Two big fields are expected to start production this year, the "Blind Faith" field in the Gulf of Mexico and the "Agbami" project off the coast of Nigeria.
Last year it had to postpone four major projects due to technical problems.
Chief Executive David O' Reilly says his firm will spend $50m a day on searching for oil this year.
Chevron shares finished 0.9% lower at $82.49.
