Oil company profits surge on record prices

| 4/27/2006

As prices at the pump continue to climb, so, too, do the profits of the major oil companies.

Reuters reported that in the first quarter of 2006, ExxonMobil had a net income of $8.4 billion, up from $7.86 billion in the first quarter of 2005.

Revenue, meanwhile, jumped to $88.98 billion in 2006, up from $82.05 billion in 2005. Revenue represents the amount of business brought in by a company in a given time frame, regardless of profit or loss.

ExxonMobil isn’t the only oil company raking it in.

Reuters reported that net income for ConocoPhillips jumped to $3.29 billion for the first quarter, up from $2.91 billion in the same quarter in 2005. Revenue for that company was also up, at $47.9 billion for 2006, compared to $38.9 billion in 2005.

At least one company, however, reported a drop. BP Amoco PLC reported that its first quarter net income fell from $6.6 billion in 2005 to $5.6 billion in 2006.

The company blamed rising taxes and a drop in production in the Gulf of Mexico following last year’s hurricanes for the drop in profits, according to a press release.