Bloomberg News reports that ExxonMobil (NYSE: XOM) reported a disappointing first quarter -- making only $10.9 billion in net profit. This crushingly poor performance of $2.03 a share was 10 cents below analyst expectations.
Regrettably, Exxon simply cannot produce enough product to take advantage of the record prices for oil and gas. Its 17% profit increase lagged behind the gains of 25% and 63% reported this week by Royal Dutch Shell Plc and BP Plc. Meanwhile Exxon's oil and gas production fell 5.6% and -- like Valero Energy (NYSE: VLO) the profit margins in its gasoline and chemical refineries were squeezed by their inability to raise prices enough to offset the rise in the price of the oil that goes into these refineries.
Another "crushing" blow for Exxon analysts was the mere 34% rise to $116.9 billion in its revenues. This was almost $2.6 billion below analyst estimates. The good news, if there can be any in such an abysmal report, is that Exxon is planning to increase spending on new wells and plant expansions by at least 20% this year to more than $25 billion.
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