Exxon breaks profit record and disappoints

Irving, Texas -- Exxon Mobil Corp. broke its own quarterly earnings record for a U.S. corporation in the second quarter and still disappointed some investors, sources said.

Despite record earnings of $11.68 billion, Exxon's stock dropped $2.49 to $81.89 in afternoon trading, the Los Angeles Times reported.

Investor expectations of even higher profits and a drop in the company's productivity helped depress prices, the Times said.

Royal Dutch Shell also reported on its second-quarter performance Thursday, posting a 33 percent gain over the first quarter with $11.6 billion in profits.

Shell used the quarter to repurchase stock and issue dividends totaling $3.8 billion in shareholder transactions, the Times reported.

While investors were disappointed Exxon did not earn more, oil companies are finding their success draws criticism.

"Exxon is pumping cash, not oil," Judy Dugan, research director at Consumer Watchdog in Santa Monica, Calif., said. "The big oil companies are wallowing in cash, and Exxon is the most aggressive in buying back its stock instead of taking the risks it should to both find new oil and develop new forms of energy," she said.

Copyright 2008 by United Press International.