Thursday, April 28, 2011
Dow Jones Newswires
by Tess Stynes
ExxonMobil's first-quarter earnings surged a bigger-than-expected 69% as the company benefited from high oil prices and stronger refining margins.
The world's largest publicly traded oil company by market value has reported stronger results in recent quarters due to rising oil profits and improved refining industry profitability. The growth was a reflection of a recovery from the recession for the broader energy sector, which appears poised for a return toward the boom days that preceded the financial collapse in 2008.
Exxon's $25 billion takeover of natural-gas producer XTO Energy Inc. acquisition last year boosted its production and reserves, though prices have remained soft. The move is anticipated to be highly profitable in the long term, on expectations that natural-gas consumption will grow.
Exxon Mobil reported a profit of $10.65 billion, or $2.14 a share, up from $6.3 billion, or $1.33 a share, a year earlier. Revenue climbed 26% to $114 billion after climbing 41% a year earlier.
Analysts polled by Thomson Reuters most recently forecast earnings of $2.07 on revenue of $114.85 billion.
Exploration and production earnings rose 49%. Exxon Mobil's production rose 10%, boosted by its acquisition last year of XTO Energy Inc., which boosted its natural gas production by 24%.
Refining and distribution business earnings soared amid stronger refining margins and sales of petroleum products.
Exxon Mobil said it spent $5.7 billion for stock repurchases, buying back 69 million shares. The total included $5 billion of buybacks to reduce shares outstanding.
Shares were down 0.5% at $87.32 in premarket trading. The stock through Thursday's close is up 27% in the past year.
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