ExxonMobil posts biggest annual profit ever by a US company of $39.5bn

ExxonMobil brought in the biggest annual profit ever by a US company in 2006, thanks to record-breaking oil prices. The company profit surged 9 percent to $39.5billion, (more than its traditional European rival Shell’s record $25.4 billion), from $36.1billion a year earlier. But Exxon revealed that its profitability had begun to slide in the final months of the year, and it posted its first quarterly earnings $10.3 billion decline 4.3percent in almost three years. Market analysts predict that the bonanza of profits that energy companies have enjoyed in recent years will end anytime soon, as oil prices slides from ever highest $78 a barrel to $50. To be in a competition with hefty profit oil giant is looking for new resources to explore as Rex Tillerson, Exxon’s chairman and chief executive, said; ExxonMobil continued to leverage its globally diverse resource base to bring additional crude oil and natural gas to market. In 2006, spending on capital and exploration projects was $19.9bn, an increase of 12 per cent over 2005. The results of our long-term investment programmed yielded an additional 172,000 oil-equivalent barrels per day of production, a 4 per cent increase over 2005. Exxon shares soared 36 per cent in 2006, outperforming those of its nearest US rivals Chevron and ConocoPhillips, and they rose again on yesterday’s fourth-quarter figures, which were better than expected.