Like all companies, XOM works on a profit margin. A 10% margin on $40 is $4. A 10% margin on $65 is still 10% but is $6.50! In theory, XOM could turn in an astronomical record-breaking performance for 2006 and post a $44 billion profit. We all need to adjust our thinking regarding $35+ billion per year profits as a present and future normality.
For more on this, see this article written by MarketWatch several months back.
As per the last conference call, XOM has put most of its refinery maintenance work behind it in Q1. This should add another 5-6% in Q2 & Q3.
XOM 1-yr chart:
Disclosure: This is a personal comment written by a CrossProfit analyst. This does reflect the opinion of CrossProfit.com.