WSJ.com - Heard on the Street
Oil Firms Seen Soft-Pedaling Record ProfitsThe world's five biggest oil companies are expected to collectively report record-breaking third-quarter earnings of almost $28 billion beginning this week. Don't expect to hear a lot of crowing.
Energy companies are facing pressure for raking in banner profits while consumers are paying high gasoline prices and are soon expected to face high home-heating bills. The result is that many analysts believe the oil giants will soft-pedal their record earnings.
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The oil giants have become cash-generating machines. The five largest are expected to end the third quarter with about $90 billion in cash on their books. The cash is piling up, even though the companies are aggressively increasing their dividends and ramping up share-repurchase programs. Oil consultant John S. Herold Inc. expects the five companies to spend $39.3 billion on share repurchases this year, up 60% from the $24.5 billion in 2004.
The cash hoards are ratcheting up pressure on the companies to do something with the money, lest they become political targets
So glad that the oil firms got all sorts of tax breaks from the Congress, especially since the U.S. budget is so well balanced. Now that Cheney is politically weakened, let's see that hidden energy report from 2000, shall we?
Tags: Energy
