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Exxon Mobil Profits Plunge

Biggest quarterly profit drop in three years, based on narrowing margins

By Sam Gale Rosen,  Newser Staff

Posted Nov 1, 2007 9:08 AM CDT

(Newser) – Exxon Mobil profits plunged in the third quarter by the most since the first three months of 2004, when oil was $35 a barrel. The behemoth's quarterly report, released today, sent Exxon shares diving. The drop was caused by equipment and power failures, as well as a narrowing profit margin due to falling retail gas prices and rising crude prices, reports Bloomberg.

Retail gas prices fell 6% in the third quarter, while crude prices rose above $80 a barrel, squeezing the oil giant. Two-thirds of analysts Bloomberg surveyed say that Exxon's four-year run of record annual earnings is likely at an end. Exxon's "been posting record results so you had to expect they would come off a little bit,'' said one analyst.

Rex Tillerson, chairman and CEO of Exxon Mobil, addresses the Spruce Meadows Roundtable, in Calgary, Canada, Friday, Sept. 7, 2007. (AP Photo/CP, Jeff McIntosh)
Rex Tillerson, chairman and CEO of Exxon Mobil, addresses the Spruce Meadows Roundtable, in Calgary, Canada, Friday, Sept. 7, 2007. (AP Photo/CP, Jeff McIntosh)   (Associated Press)
Rex Tillerson, chairman and CEO of Exxon Mobil, addresses the Spruce Meadows Roundtable, in Calgary, Canada, Friday, Sept. 7, 2007. (AP Photo/CP, Jeff McIntosh)
Rex Tillerson, chairman and CEO of Exxon Mobil, addresses the Spruce Meadows Roundtable, in Calgary, Canada, Friday, Sept. 7, 2007. (AP Photo/CP, Jeff McIntosh)   (Associated Press)
An Exxon station is shown in Keller, Texas, Wednesday, July 25, 2007. Exxon Mobil Corp. is the world's largest publicly traded oil company. (AP Photo/Donna McWilliam)
An Exxon station is shown in Keller, Texas, Wednesday, July 25, 2007. Exxon Mobil Corp. is the world's largest publicly traded oil company. (AP Photo/Donna McWilliam)   (Associated Press)
Gas prices in the District of Columbia are displayed at this Exxon service station Wednesday, May 23, 2007. Exxon reported its worst profit drop in three years today. (AP Photo/Haraz N. Ghanbari)
Gas prices in the District of Columbia are displayed at this Exxon service station Wednesday, May 23, 2007. Exxon reported its worst profit drop in three years today. (AP Photo/Haraz N. Ghanbari)   (Associated Press)
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