Exxon Mobil, Shell Profits Soar as Energy Prices Rise

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Exxon Mobil, Shell Profits Soar as Energy Prices Rise (Update3)

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April 28 (Bloomberg) -- Exxon Mobil Corp., the world's largest

publicly traded oil company, posted a 44 percent profit gain and Royal

Dutch/Shell Group had a 28 percent increase as unprecedented demand

lifted energy and chemicals prices.

 

First-quarter net income at Exxon Mobil jumped to $7.86 billion, or

$1.22 a share, from $5.44 billion, or 83 cents, a year earlier, the

Irving, Texas-based company said today in a statement. Shell said its

profit excluding gains in the value of oil in storage rose to $5.55

billion from $4.33 billion.

 

Oil companies are reaping record profits as economic growth in Asia

and North America causes energy consumption to increase faster than

supplies. Crude-oil and gasoline futures touched all- time highs this

month in New York.

 

``There's been a huge increase in demand, especially if you look at

China and India, where the economies are expanding so rapidly,'' said

John Leiviska, who helps oversee $17 billion, including Exxon Mobil

debt, at Advantus Capital Management Inc. in St. Paul, Minnesota.

``Demand is rising in places where they're trying to enjoy a lifestyle

like we have in the West.''

 

The trend of rising prices shows no signs of abating, he said. ``There

are not a lot of easy opportunities remaining to increase supply.''

 

Peter Voser, finance chief at Shell, Europe's second-largest oil

company, said on a conference call that he expects oil prices to

remain high through the end of this year.

 

Demand Grows

 

Worldwide oil consumption rose 2.6 percent in the first quarter,

exceeding a 2.2 percent gain in production, according to the

International Energy Agency in Paris.

 

Combined net income at the four biggest oil companies that have

reported first-quarter results rose 39 percent from a year earlier to

$21.8 billion. Those companies are Exxon Mobil, London- based BP Plc,

Shell and Houston-based ConocoPhillips.

 

``Results have been spectacular,'' said Daniel J. Rice III, who helps

manage $1.6 billion, including shares of Exxon Mobil, at Blackrock

Advisors Inc. in Boston. ``Pricing is strong.''

 

The No. 2 U.S. oil company, ChevronTexaco Corp., is scheduled to

report earnings tomorrow.

 

Exxon Mobil's first-quarter revenue rose 21 percent to $82.1 billion,

more than the full-year economic output of Egypt or Pakistan. The

company has generated more than $33 billion in net income in the past

five quarters.

 

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