The Spokesman-Review Newspaper
The Spokesman-Review Newspaper The Spokesman-Review
Spokane, Washington  Est. May 19, 1883
Current Temperature
31°F
Current Conditions
Mist
View complete weather report

Color Scheme

Subscribe now

Chevron profits up 49%

Flags fly near an entrance to the Chevron's Richmond Refinery with tanks in the background in Richmond, Calif., on Friday. Chevron Corp.'s first-quarter profit soared 49 percent to $4 billion. (Associated Press / The Spokesman-Review)
Associated Press The Spokesman-Review
Flags fly near an entrance to the Chevron's Richmond Refinery with tanks in the background in Richmond, Calif., on Friday. Chevron Corp.'s first-quarter profit soared 49 percent to $4 billion. (Associated Press / The Spokesman-Review)

Chevron Corp.’s first-quarter profit soared 49 percent to $4 billion, joining the procession of U.S. oil companies to report colossal earnings as lawmakers consider ways to pacify motorists agitated about rising gas prices.

Chevron released its results Friday after two of its biggest rivals, ConocoPhillips and Exxon Mobil Corp., already provoked public outrage with similarly large first-quarter profits. Combined, the three oil companies earned $15.7 billion during the first three months of the year. That’s 17 percent more than the trio made during the same time last year when they went on to pocket a combined profit of nearly $64 billion for all of 2005.

“All these companies have so much money, they don’t know what to do with it,” said Oppenheimer & Co. analyst Fadel Gheit.

President Bush offered a suggestion to the oil companies Friday, urging them to plow more of their investments into projects that will increase energy supplies to meet a rising demand that is expected to intensify as emerging economic powerhouses like India and China continue to grow.

For their part, the oil companies have been emphasizing that they make far less money on each dollar of sales than many other industries that aren’t being excoriated for their capitalism.

Taken together, Exxon, Chevron and ConocoPhillips made a first-quarter profit of $8.19 on every $100 in sales. In contrast, Internet bellwethers Google Inc., Yahoo Inc. and eBay Inc. collectively turned a $19.20 profit on every $100 of their combined first-quarter revenue.

As important as the Internet has become, energy remains a more vital resource, generating a far higher sales volume that has fueled the mounting indignation over the amount of cash pouring into the oil industry.

•Mountain West Bank announced improved earnings for the first quarter.

Earnings after taxes were $3.9 million for the first quarter, up 10 percent from the same period in 2005. Assets increased to $810 million, a 23 percent gain from the first quarter of 2005, bank officials reported.

Mountain West opened three new branches in Coeur d’Alene, Boise and Meridian.

Mountain West is a state-chartered bank with 21 branches in Idaho, Washington and Utah. The bank is a wholly owned subsidiary of Glacier Bancorp.

•Automaker Volkswagen AG said Friday its net profit more than quadruple in the first quarter amid sharply higher sales and strengthening worldwide auto markets.

Still, the results fell short of analysts’ expectations and the company’s stock fell.

Net profit jumped to 327 million euros ($409 million) from 70 million euros a year ago, with revenue up 21 percent to 25.34 billion euros ($31.67 billion).

The earnings were below the average 439 million euros ($549 million) foreseen by analysts surveyed by Dow Jones Newswires.

Volkswagen shares fell 5.4 percent to close at 61.21 euros ($76.31) on the Frankfurt exchange.

The company said the year got off to a good start, even in the brutally competitive global auto industry.

The company cut its losses in the North American market, where it has been hampered by a stronger euro that makes its products less competitive on price. The operating loss was 233 million euros ($291 million) instead of 332 million euros a year ago.