By JOHN PORRETTO
AP Business Writer
NEW YORK (AP) — Oil giant Exxon Mobil Corp. kicked off 2007 with a 10 percent rise in profits, its best-ever first quarter, as higher margins on refining and chemical operations offset lower prices for crude oil and natural gas.
Exxon Mobil, the world’s largest publicly traded oil company, said Thursday it earned $9.3 billion in the January-March period, beating Wall Street expectations, even as revenue slipped and fell well short of analysts’ forecasts.
The Irving, Texas-based company was the third major oil company to report earnings in as many days. BP PLC, Europe’s second-largest oil company, on Tuesday reported a 17 percent drop in first-quarter earnings on lower oil prices and declining production. On Wednesday, ConocoPhillips said its first-quarter profit rose 7.7 percent as a result of asset sales that offset lower year-over-year commodity prices.
Also Thursday, Valero Energy Corp., the nation’s largest independent oil refiner, said its first-quarter profit jumped 35 percent on the back of stronger gasoline and distillate margins.
The market price for crude oil was off more than $5 a barrel in the first quarter versus a year ago. The comparable price for natural gas also was down.
Still, given the rise in gasoline prices at the pump in recent weeks, oil majors like Exxon Mobil and BP were getting little sympathy from U.S. consumers for not earning as much as they could have if market prices for their products had been higher to start 2007.
“They’re hurting me all the way around,” Bill LoGerfo of Staten Island said Thursday as he paid $3.27 a gallon for premium unleaded to fill up his car at a BP station in Manhattan. Regular unleaded was selling for $3.03 a gallon.
“I’m in the construction business, so it makes it more expensive to get materials shipped to me,” LoGerfo said. “These prices really trickle down to the little guy.”
In response to the new round of oil profits, Sen. Bob Casey, D-Pa., introduced legislation Thursday that he hopes will curtail rising gas prices. Casey’s bill would impose a windfall profits tax and close certain tax loopholes for big oil companies and use the money for research into biofuels and other related projects.
Investors, however, pushed Exxon Mobil shares up 63 cents to close at $80.55 on the New York Stock Exchange after sending them to a new 52-week high of $80.86. They’ve traded as low as $56.64 in the past year.
Exxon Mobil’s profit amounted to $1.62 per share, up from $8.4 billion, or $1.37 per share, a year ago. Analysts polled by Thomson Financial were looking for a profit of $1.52 per share.
Revenue fell to $87.2 billion from $88.9 billion a year earlier, well below the $100 billion analysts had forecast.
Last year, the company posted the largest annual profit by a U.S. company - $39.5 billion. That result topped the previous record, also by Exxon Mobil, of $36.13 billion set in 2005. MORE
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