Oil company profits surge on record prices

| Thursday, April 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.