Exxon Mobil: Most profitable year for any company is U.S. History.

Filed in archive on January 30, 2006

In an amazing performance, Exxon Mobil had the most profitable year in U.S. history. They reported that fourth quarter profits rose 27 percent to a record $10.7 billion.

Income soared to $1.71 a share from $8.42 billion, or $1.44 a share, the year before, the Irving, Texas-based company said today in an announcement.

Bloomberg reports that "Revenue rose 20 percent to $99.7 billion as rising demand and hurricanes lifted prices for oil, natural gas and gasoline. Full-year revenue was $371 billion, pushing Exxon Mobil past Wal-Mart Stores Inc. as the largest U.S. company by sales. The average U.S. profit on refining crude into gasoline and other fuels widened to a record of almost $11 per barrel processed."

Exxon shares rose $1.87 to $63.16 in morning trade on the New York Stock Exchange.

Quarterly revenue ballooned to $99.66 billion from $83.37 billion a year ago but came in shy of the $100.72 billion Exxon posted in the third quarter, which was the first time a U.S. public company generated more than $100 billion in sales in a single quarter.

To put that into perspective, Exxon's revenue for the year exceeded Saudi Arabia's estimated 2005 gross domestic product of $340.5 billion, according to statistics maintained by the Central Intelligence Agency

By segment, earnings from downstream operations, or refining and marketing, were $2.39 billion for the quarter, up $46 million from the previous year's fourth quarter. Earnings from U.S. upstream operations were $1.8 billion -- a $403 million increase from last year. Earnings from Exxon's chemical business were down $413 million to $835 million.

All in all, it was an extraordinary year for the company. Exxon Chairman Rex Tillerson had this to say in response to the numbers: "We recognize that consumers worldwide want and need reliable supplies of affordable energy -- to fuel their vehicles, light and heat their homes and run their businesses. Our strong financial results will continue to allow us to make significant, long-term investments required to do our part in meeting the world's energy needs."