Is Exxon-Mobil (XOM) Making Money?

Money rather than moral outrage is the probable motivation for the lawsuits. Exxon-Mobil’s (XOM) financial numbers indicate the company is generating a lot of money.

For example, Exxon-Mobil reports a free cash flow of $2.853 billion; and an operating cash flow of $7.78 billion, for 2nd Quarter 2018. Moreover, Exxon-Mobil earned a $23.799 billion gross profit on $73.501 billion in revenues during the 2nd Quarter.

Exxon-Mobile received a $3.95 billion net income and a $6.659 billion in operating income in 2nd Quarter 2018. However, Exxon-Mobile had only $3.43 billion in cash and short-term investments on June 30, 2018.

Therefore, Exxon-Mobil is not making that much money for a company that generated $244.363 billion in revenue in 2017. Exxon-Mobil generates a lot of revenues but it does not keep that much money in the bank.

Another problem is that Exxon-Mobil’s high revenue growth (26.56% in 2nd Quarter 2018) is not translating into cash. The return on Exxon-Mobil’s revenues is low.

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Porsche Kills Diesel

Porsche is still committed to gasoline, despite its well-publicized electric car plans.

“Petrol engines are well suited for sporty driving,” Blume told the press.

Despite Blume and Lutz’s pronouncements, Porsche plans to invest €6 billion ($7 billion) in electrification, Tech Crunch estimates. Markedly, half of all Porsche vehicles could feature an electric drive by 2025.

Importantly, Porsche will invest $580 million (€492 million) to make the Taycan a reality. The Taycan is the all-electric sports car formerly known as the Mission E. Auto industry observers expect the Taycan to reach the market in 2019.

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