EL DORADO, AR (KAIT) - The price at the pump may be hurting consumers, but it's affect on oil companies is the exact opposite. Murphy Oil Corp. of El Dorado announced Wednesday that it's second quarter net income was $627 million, or $3.27 a share. Their profits just one year ago? $250.3 million or $1.32 a share. That is a 160% increase.
GasBuddy.com estimates that most of Arkansas had gas that was at least $1 more than it was one year prior.
Wall Street analysts expected earnings of $2.19 a share, compared to the $3.27 a share actually posted.
For the first half of 2008, net income totaled $1.04 billion or $5.40 a share. The same time frame in 2007 saw a net income of just $360.9 million or $1.90 a share.
The company expects earnings in the third quarter to be between $2.80 and $3.10 a share.
Many oil-friendly advocates and commentators have said that petroleum companies have some of the lowest profit margins of any business and that they only make a tiny profit off of each sale.
The announcement Thursday by Exxon-Mobil that it's second quarter profits had rose nearly 14% to $11.68 billion didn't do much for the argument that oil companies don't make big profits; $11.68 billion for a single quarter is the biggest profit ever by any U.S. corporation, according to The Associated Press.
We want to know what your take is on the surging energy prices. Right now, you can vote on the homepage of kait8.com and tell us whether you feel the energy companies should be held responsible for the high price of petroleum that is putting the strain on American families and the economy.