Exxon Mobil and Shell see Q3 Earnings Soar
29th October 2010
Exxon Mobil Corp and Royal Dutch Shell saw a rise in third quarter profits stemming from improved economic conditions along with higher production levels, due to the addition of some new fields. The company is starting to see some rebound effect take place from their many different business units, hit so hard by the recession early last year. Also, new projects meant to sustain long term growth were starting to show life.
Exxon Mobil alone improved its quarterly earnings 55 percent, due mainly to the success of a recently acquired Fort Worth company, XTO Energy. The acquisition of XTO earlier this year not only made Exxon the largest natural gas producer nationwide, but also had a significant impact on the quarter overall, enabling gas output to triple.
Production soared overall for the company by more than 20 percent during the quarter. Exxon, now maybe more than ever, is benefitting from global projects as success in Qatar and Russia is helping the company post strong numbers.
To attach some real figures to the company results may be more impressive, though. Net income for the quarter totaled over $7.3 billion. As an indication of the success of the quarter, last year saw net income limp in at $4.7 billion, respectfully, during the same three month period. Revenue improved $13 billion to $95 billion during the third quarter also.
Rex Tillerson, CEO of Exxon Mobil, commented on the success seen by the Irving-based oil company during Q3, saying, “Despite continuing economic uncertainty, we had strong quarterly results and continued to advance on robust investment opportunities.”
In a move seen as positive for this economic climate, Exxon also announced a more intense share buyback program, up from 3 to $5 billion during the fourth quarter. Analysts expect this will be favorably viewed by share holders.
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