G-R-E-E-D-Y oil companies? Only 26.2% profit in 2004?

[GPURS]

Smee, give it up man, you are trying to beat people over the head with bad numbers and bad logic. Even if the real profit margins were 30%, would that not be a good thing? Is this not still the United States where free market capitalism is our choice of economy? If you are concerned about profit margins, maybe you should not drink that next bottle of water or can of cola(HUGE PROFITS).. Everytime the price of oil and gas pops, the dems force one investigation after another into "big oils" profits, and always come up empty handed. Why such hostility?

 

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[Lasivian]

Is this not still the United States where free market capitalism is our choice of economy?

EXACTLY! If gas is too expensive, don't buy it!

 

[get-r-dug]

Sounds kinda Kooky to me.

The reason the numbers are from 4 years back is those are the most recent ones you can find there. Have at it. Find me the numbers from the SEC filings to back up your claims, not some leftist bunch at CNN after they have put their spin on things. They can't even question outright lies made by an Exxon rep on their live news show, how can you expect them to get things right.

Unfortunately Smee, you can't read an accounting statement. The numbers you have given are for shareholders' return on equity. Using the report you refer to provides the following:

2004 - Total revenues were $8.2 billion and net earnings were $1.2 billion or profit of 14.6%

2003 - Total revenues were $6.51 billion and net earnings were $640 MILLION or profit of 9.8%

2002 - Total revenues were $5.27 billion and net earnings were $330 MILLION or profit of 6.3%

2001 - Total revenues were $6.77 billion and net earnings were $610 MILLION or profit of 9.0%

2000 - Total revenues were $9.21 billion and net earnings were $760 MILLION or profit of 8.3%

So, over that five year period, the total revenues were $35.96 billion and net earnings were $3.54 billion or profit of 9.84%. Hmmmmmmm, looks like that is between 8% and 10%. Thank you for proving my point (even if you didn't really want to).

Ok....I'm not the sharpest crayon in the box when it comes to math but doesn't this section:

Table of Contents
1. During the fourth quarter, we cancelled 1,056 shares repurchased for the payment of withholding taxes due on restricted stock that vested under various employee restricted stock plans.



During the fourth quarter, we purchased 64,817 shares in the open market and distributed these shares to employee participants in Unocal’s savings plans, which are defined contribution plans with 401(k) features.



2. In December 1996, our board of directors authorized the repurchase of $400 million of our common stock. In January 1998, our board extended the stock repurchase program, increasing the authorized amount by $200 million. At the beginning of 2004, we had a balance of $189 million remaining for additional repurchases. In August 2004, we purchased approximately $150 million of our common stock under this program, resulting in a balance of approximately $39 million for additional purchases. In December 2004, our board of directors authorized the repurchase of up to $200 million of our common stock (including the $39 million balance remaining from its previous authority) plus shares of common stock up to the dollar amount not spent by us to redeem preferred securities of the Trust due to the conversion of those securities into shares of common stock. Because of the conversion of preferred securities, an additional $259 million became available to repurchase additional shares of our common stock, raising the total authorized common stock repurchase program limit to $459 million. There is no expiration date to this repurchase program.



3. In October 2004, our board of directors authorized the repurchase from time to time of shares of our common stock in order to offset the net number of shares of common stock issued by us upon the exercise or granting, as the case may be, of existing or subsequently issued stock options or shares of our restricted common stock. There is no expiration date to the repurchase program. The board authorized management to determine whether, and when, to effect any repurchases under this program and did not limit the aggregate dollar amount for any such repurchases. In 2004, we repurchased approximately $54 million of our common stock under this program. As of February 28, 2005, we had approximately 1.5 million shares that were authorized for repurchase under this program.



-29-

mean that they bought their own shares.........soooooo even if the percentages were for shareholders wouldn't that be (at least in part) the company owners themselves....maybe I just don't understand....I don't mean to start any new arguements and certainly don't want any verbal abuse directed toward me but that's just what I saw when I looked at it. Just a high school education here so this is simply a simple observation and may be VERY wrong!

 

[Casull]

mean that they bought their own shares.........soooooo even if the percentages were for shareholders wouldn't that be (at least in part) the company owners themselves....maybe I just don't understand....I don't mean to start any new arguements and certainly don't want any verbal abuse directed toward me but that's just what I saw when I looked at it. Just a high school education here so this is simply a simple observation and may be VERY wrong!

Obviously, you are correct in that the shareholders are the company owners. The point that I was making, and that Smee could not understand, was that the percentages that he was referring to were not the profit margins (percentage of profit based on revenue) of the company, but rather the percentage of profit to stock equity (which is only of any interest to the stockholders).

 

[get-r-dug]

Yeah, I understand what you mean....I think. But they still make a slideload of money!

 

[Casull]

Yeah, I understand what you mean....I think. But they still make a slideload of money!

Yeah, biggest companies with the biggest investments tend to make the most money.