ExxonMobil profit surges to record $14.8 billion

The latest report pushed up profits for the first nine months of 2008 to $37.4 billion, putting the biggest oil and gas company toward another record year for earnings.

The results translated to a profit of $2.86 per share, or $2.59 excluding special items, ahead of market expectations of $2.39.

Revenues in the July-September period jumped 34 percent to $13.73 billion.Â
 

Third-quarter earnings excluding special items worth $1.45 billion were a record $13.38 billion, up 42 percent from the 2007 third quarter.

"ExxonMobil’s strong results in the third quarter of 2008 demonstrate the continued success of our disciplined business approach," ExxonMobil chairman Rex Tillerson said.

"Despite the continuing uncertainty in world financial markets, ExxonMobil has maintained a strong financial position," he said.

The July-September financial results include the impacts of hurricanes Gustav and Ike which rocked U.S. Gulf Coast operations. Most of the operations shuttered by the storms are back on line or are in the final phases of start-up.

"We responded quickly and effectively to maximize supplies of gasoline and other products to the marketplace," Tillerson said.

The company endured a $50 million increase in pre-tax costs due to the hurricanes and a reduction in production of 24,000 oil equivalent barrels per day. The fallout from damage repairs and lower output was forecast to shave some $500 million off fourth-quarter earnings.

Tillerson said full-year capital and exploration investments were expected to reach some $25 billion, in line with previous guidance.

Those investments rose to $6.9 billion in the third quarter, up 26 percent from a year ago. For the first nine months, they amounted to $19.3 billion.

"Through these investments we continue to make a substantial contribution to employment and economic activity in the countries in which we operate," Tillerson said.

Third-quarter net Germany and an after-tax special charge of $170 million reflecting a provision for interest related to the Valdez punitive damages award.

The U.S. Supreme Court in June rejected as excessive $2.5 billion in punitive damages awarded to victims of the 1989 Exxon Valdez oil spill disaster off the coast of Alaska and ordered it cut to $507.5 million.

The company had operational assets of about $17 billion on Sept. 30, including asset sales of $2.6 billion.