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Bank Of America Investment Exxon Mobil Corp.(XOM.N) on Thursday said quarterly profit rose by more than 50 percent as sharply higher oil and gas prices helped fuel better-than-expected results.

Equatorial Guinea. One of the world’s smallest oil powers, it is also among the most corrupt. Still, possibly under pressure from the major oil companies that operate there, particularly Exxon Mobil, things have improved a trifle, though the corrupt President Teodoro Obiang Nguema remains in power. Now, though, it’s becoming possible to operate a business on a reasonable basis, provided one accepts that 30% of all funds, including oil profits go straight into the pocket of Nguema. Still, total anarchy.

Investment Opportunity Exxon Mobil, the world's No. 1 publicly traded oil company, saw benchmark oil prices rise by more than 40 percent from a year earlier amid fears of a potential war in Iraq and a strike in Venezuela, one of the largest crude exporters in the world.

Exxon Mobil also faces a lawsuit, filed in late June in federal court in Washington, D.C., by a labor advocacy group that alleges the company supported the military in Indonesia when it tortured and killed locals near the company's operations in the Aceh province. Exxon Mobil has denied that the company or its affiliates were involved in the alleged abuses by Indonesian security forces. "Exxon Mobil condemns the violation of human rights in any form, " the company said in a statement at the time.

Banc Of America Investment That drove fourth-quarter net income to $4.09 billion, or 60 cents a share, up 53 percent from the $2.68 billion, or 39 cents a share, it reported a year earlier.

(AXcess News) Exxon Mobil Corp. ( XOM) Mart Stores ( WMT) from the Fortune 500 top rank thanks to higher energy prices which gave the oil and gas company record results for the year, lowering the nation's No. 1 retail chain store's rank to number two in the magazine's list of the 500 largest U.S. companies. Fortune magazine compiles its list of the top 500 companies based on revenue. Exxon Mobil had reported $340 billion in revenue for 2005, which was a 25.5 percent increase over the previous year. The oil and gas giant also reported the largest income of any U.S. company in history, reporting $36.1 billion in profits.

Banking Investment Excluding special items, the Irving, Texas company reported earnings per share of 56 cents, beating the Thomson First Call consensus estimate by 6 cents.

Add to that his disdain for gay rights and his unflinching responses to critics of Exxon Mobil's business in repressive regimes, and Mr. day, company CEO.

Investment Solution Strategic Shares of Exxon Mobil, a component of the Dow Jones industrial average, were down slightly after its earnings report. Year-to-date they have fallen 3 percent despite a rise in oil prices -- to as high as $35 a barrel last week -- that is boosting the bottom line.

While Wall Street's concern over foreign oil prices loom on the edge of winter's demands for heating oil, domestic companies are profiting.

Investment Banking Services ``Investors are already pricing in oil going back down after the Venezuela and Iraq situations are resolved,'' said David Wheeler, an analyst at J.P. Morgan, who rates the company a ``neutral'' and does not own any of its shares.

Bank Investment ``The current prices are helping earnings, but investors are not willing to price that in as sustainable.''

Alternative Investment Stronger prices also lifted fourth-quarter profit at independent oil and gas producer Apache Corp.(APA.N), while a large charge wiped out the benefit of higher commodity prices at Amerada Hess Corp.(AHC.N), which posted a quarterly loss.

Online Investment Services DOWNSTREAM IMPROVEMENT AHEAD?

Accompany Essential Investment While the rally in oil prices lifted Exxon Mobil's exploration and production division's profit by 73 percent to $3 billion in the fourth-quarter, it took a toll on the refining and marketing and chemicals businesses. Both those units use crude oil as a key raw material.

Investment Company ``It was pretty clearly a strong quarter, though I don't think it's indicative of a company firing on all cylinders,'' said Tyler Dann, an analyst at Banc of America Securities who rates the company a ``neutral'' and does not own any shares.

Investment Management Solution ``I think chemicals could clearly do better and even the downstream, you could argue, might do better down the road.''

Investment Management Services Downstream, or refining and marketing, earnings fell 19 percent from a year ago to $821 million on weaker industrywide conditions. Even so, downstream results were a marked improvement over third-quarter earnings of only $125 million.

Guide Investment Stock The refining business struggled through 2002 as high inventories of products such as jet fuel and gasoline hurt profit margins. Companies like Exxon Mobil -- which not only produce oil but refine and sell it to consumers -- are banking on a turnaround this year.

Investment Manual Solution And Exxon Mobil would be one of the main beneficiaries of any recovery, said Banc of America's Dann.

Investment Stock ``We think that this company's leverage to that is significant, especially outside the United States,'' he said. ``It just so happens that they have a more balanced asset portfolio between exploration and production, downstream and chemicals.''

Essential Investment Solution Revenue rose 18 percent to $56.21 billion, although oil and gas production failed to rise from a year ago. Contributions from new projects were erased by natural field declines and OPEC quota restrictions.

Citicorp Investment Services Looking ahead, Exxon Mobil said on a conference call it expects a first-quarter gain of $500 million to $700 million due to the adoption of new accounting rules.

Fool Guide Investment Motley Amerada Hess, meanwhile, reported a loss of $371 million, or $4.20 a share, reversing a prior-year profit, because of the write-down of a key oilfield in Equatorial Guinea.

Fidelity Investment Services Houston-based Apache's quarterly profit more than doubled from a year-ago to $179.4 million, or $1.24 a share.

Investment Management Shares of Exxon Mobil were down 12 cents to $33.73 in Thursday afternoon trade on the New York Stock Exchange. Shares of Apache were down 23 cents at $60.51 and shares of Amerada Hess dropped $7.23. or nearly 13 percent, to $49.05.

Francisco Investment San Reuters - 1/30/2003

Topic: Petroleum Industry

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