By Jeffrey Tomich

Irving, Texas, May 1 (<a href=quote.bloomberg.com>Bloomberg) -- Exxon Mobil Corp., the world's largest publicly traded oil company, said first-quarter profit tripled to $7.04 billion because of surging energy prices and proceeds from the sale of a German natural-gas business.

Net income was equal to $1.05 a share, compared with $2.09 billion, or 30 cents a share, in the same period of 2002, the company said in a statement. Revenue rose to $63.8 billion from $43.5 billion.

Exxon Mobil had a record quarter for profit as oil prices rose 56 percent on average and natural gas doubled. The refining business, which had a loss in the first quarter last year, earned $723 million before taxes and interest. Chemical profit surged 85 percent.

Aside from a little bit of a shortfall in production, we were pleased,'' said Gene Pisasale, senior investment officer at Wilmington Trust Co., which owns almost 10 million Exxon shares. They had strong downstream margins and chemicals were good.''

Excluding a $1.7 billion gain from the sale of Exxon Mobil's stake in German natural-gas distributor Ruhrgas AG, a $550 million benefit from an accounting change, and some merger expenses, profit was $4.79 billion, or 71 cents a share, the company said.

Analysts had expected 70 cents, based on the average estimate in a poll by Thomson Financial.

Oil Earnings

Earnings from oil and gas production doubled to a record $3.99 billion because of higher prices, the company said.

Production of oil and natural-gas liquids fell to 2.51 million barrels a day from 2.54 million barrels, the company said. Natural-gas output rose to 12 billion cubic feet a day from 11.7 billion cubic feet.

Excluding the effects of the strike in Venezuela and a restriction on Exxon Mobil's production for members of the Organization of Petroleum Exporting Countries, output of oil and gas rose 2 percent, the company said.

Average crude-oil prices rose 56 percent in the quarter to $33.80 a barrel because of a strike in Venezuela, civil unrest in Nigeria and the war in Iraq. Natural gas more than doubled to $5.92 per million British thermal units as cold weather in much of the U.S. spurred demand for heating fuel.

Prices fell during March and ``are significantly lower thus far in the second quarter,'' Exxon Mobil said.

Shares of Irving, Texas-based Exxon Mobil fell 13 cents to $35.07 at 10:41 a.m. in New York Stock Exchange composite trading, after earlier rising as much as 49 cents. The stock had fallen 12 percent in the past year.

Refining Profit

Profit from making and selling fuels such as gasoline and heating oil was $723 million compared with a $28 million loss a year ago.

Earnings from the chemicals business rose to $287 million because of favorable foreign exchange effects and improved profitability outside the U.S.

Exxon raised its quarterly dividend 8.7 percent yesterday to 25 cents a share from 23 cents. It was the first quarterly boost in the payment since 2001 for Exxon Mobil, which had $7.2 billion in cash at the end of last year.

Capital and exploration spending in the first quarter rose $522 million to $3.5 billion, Exxon Mobil said. The company also purchased 35 million shares of its stock during the quarter for $1.19 billion, or about $34 a share. Last Updated: May 1, 2003 10:41 EDT

Posted on Thu, May. 01, 2003 By ALEXANDRA OLSON Associated Press

HAVANA - Fidel Castro accused the United States of wanting to attack Cuba, speaking at a May Day celebration on Thursday that aimed to defend the island's socialist system against criticism from abroad.

"In Miami and Washington they are now discussing where, how and when Cuba will be attacked," the Cuban president told a crowd of hundreds of thousands gathered for the celebration in Havana's Plaza of the Revolution.

"I want to convey a message to the world and the American people: We do not want the blood of Cubans and Americans to be shed in a war," he said.

The crowd responded with cries of "Whatever it takes, Fidel!" while waving handheld Cuban flags. One group hoisted an effigy of President Bush that read, "Bush: Don't mess with Cuba."

Castro spoke for less than two hours - brief for the 76-year-old president. He said U.S. officials "provoke and encourage" attacks like the recent hijackings of Cuban planes and boats.

There was no immediate response from the U.S. State Department. Defense Secretary Donald H. Rumsfeld said recently that "there are no plans for military action against Cuba."

The gathering came two weeks after the firing-squad executions of three men convicted of terrorism for trying to hijack a Cuban ferry full of passengers to the United States. No one was hurt in the hijacking - one of at least four over a few weeks.

The Bush administration - along with other governments and international human rights groups - condemned the quick trial and execution of the men.

Castro said the executions were necessary to halt the hijackings and stem a growing migration crisis.

But he said he respected the opinions of Pope John Paul II and some of his longtime supporters, including the New York Rev. Lucius Walker Jr., who have asked him to abolish the death penalty. The Cuban leader said he would consider their arguments.

"Cuba, you are a world leader in human rights and respect for human life," Walker told the crowd earlier in the morning. "The death penalty demeans that."

Walker, pastor of Salvation Baptist Church in Brooklyn, and executive director of New York-based Pastors for Peace is among Cuba's best-known American supporters.

"The day will come when we can accede to the wishes for the abolition of this penalty so nobly expressed here by Reverend Lucius Walker," Castro said. "A wave of hijackings had been unleashed and was already in full development - it had to be stopped."

Cuba also faces stern criticism for sending 75 dissidents to prison on charges of collaborating with U.S. diplomats to destabilize the socialist regime. It was the island's harshest crackdown on opponents in decades, drawing condemnation even from leftist intellectuals traditionally sympathetic to Cuba.

Castro said he was disheartened with "those friends of Cuba" - such as Mexican novelist Carlos Fuentes - who have "attacked Cuba unjustly."

He warned they would "suffer infinite sorrow" if Cuba were attacked and "they realized their declarations were shamelessly manipulated by the aggressors to justify a military attack."

thestreet.com By TSC Staff 05/01/2003 08:34 AM EDT

ExxonMobil (XOM:NYSE - news - commentary - research - analysis) saw profits surge in the first quarter thanks primarily to the war in Iraq. The company posted $63.8 billion in quarterly revenue.

The country's No. 1 oil company said earnings in the quarter were $7.04 billion, or $1.05 a share, up from $2.09 billion, or 30 cents a share, last year. Before various items the company earned 71 cents a share, a penny better than expected.

Like all oil drillers, Exxon's results were goosed by a 57% rise in the price of oil last quarter, to an average cost of about $34 a barrel. Along with the Iraqi invasion, civil unrest in Nigeria and a big strike in Venezuela also conspired to life prices.

On Wednesday, Exxon raised its quarterly dividend to 25 cents from 23 cents.

By Bradley Brooks <a href=www.upi.com>UPI Business Correspondent From the Business & Economics Desk Published 5/1/2003 8:14 AM

RIO DE JANEIRO, Brazil, May 1 (UPI) -- It was a mixed week for stocks across Latin America, as solid earnings reports and optimism in Brazil buoyed investors. But less-than-favorable election results in Argentina temporarily sent equities there down.

A Sunday vote in Argentina sent former President Carlos Menem and his fellow Peronist rival Nestor Kirchner into a second-round vote scheduled for May 18.

While investors like Menem's business-friendly talk, the corruption that was rather rampant during his 1989 to 1999 time in office does prompt some anxiety.

The center-left Kirchner is not viewed favorably by investors, who see him continuing many of President Eduardo Duhalde's big-government policies.

Some analysts don't envision either Menem or Kirchner as viable alternatives who can lead Argentina -- South America's second-biggest economy -- back to days of solid growth and tranquility.

"To date, neither candidate has laid out a coherent economic road map for Argentina in anything that I have seen directly or indirectly," said Edwin Truman, a senior fellow at the Institute for International Economics in Washington.

Not exactly the sort of analysis investors get excited with.

Truman laid out what he thinks are the important initial steps Argentina's next president should take to make the country once again an attractive place to do business.

"The first lesson of all governments is to take the bitter medicine early. The new government will have a lot to do," he said.

"They may not be the central issues for the Argentine people, but the rest of the world will be watching what is done to fix the busted banking system and to address the issue of public utilities."

Meanwhile, over in Brazil, Latin America's biggest economy, investors remained on a roll.

The government sold some $1 billion in bonds on Tuesday, marking Brazil's first entry back into the international market in more than one year.

That is not only a significant financial step, but a symbolic gesture of the renewed optimism that Brazil -- the eternal "country of the future" as the locals like to say -- may start coming into its own this year.

But, analysts warn, all that hinges upon the continued austerity of the center-left government of President Luiz Inacio Lula da Silva, and his pushing through much-needed reforms to Brazil's pension, tax and legal systems.

As for the markets, Brazil's Bovespa stock index finished last Thursday down 2.2 percent at 12,120. Profit taking was to blame, as equities rallied six percent in the previous five sessions. Long-distance carrier Embratel lost 5.8 percent. Jetmaker Embraer fell 1.79.

Friday brought a flat close at 12,126 for the index, profit taking again hurting the day. Banco Bradesco dropped 2.14 percent.

News of the $1 billion bond issuance pumped investors up Monday. The Bovespa rose 2.8 percent to 12,462, it highest point in 10 months. The trading day gained momentum late, especially after investors learned Brazil would use the new "collective action" clause in selling the new bonds, thus making them more manageable in a default or rescheduling situation. Fixed-line phone giant Telemar gained 4.7 percent. State-run oil company Petrobras rose 1 percent.

Tuesday brought a gain of 1.7 percent to 12,678 as the bond issuance went off without a hitch. Telemar added 3.55 percent, while cellular company Telemig gained 2.6 percent.

Wednesday brought a loss of 0.96 percent to 12,557 for the Bovespa. Bradesco shed 2.38 percent, while Embratel slipped 3.78 percent. Telemar lost 2.8 percent.

In Mexico, the IPC index ended Thursday flat at 6,379. Latin America's largest wireless company America Movil gained 3.96 after reporting solid earnings after the bell Wednesday. Fixed-line phone company Telmex, however, shed 2.16 percent.

Friday saw a loss of 0.7 percent to 6,333 for the IPC, mostly on profit taking. Broadcaster TV Azteca added 3.2 percent after reporting a nice increase in profits after the bell Thursday.

The IPC rose 1.5 percent to 6,428 Monday. TV Azteca led the day, gaining 5.4 percent as investors retained residual optimism from the earnings report.

Rival broadcaster Televisa gained 3.62 percent Monday, despite having its stock downgraded to neutral from overweight by JP Morgan. The company was set to release its earnings report the following day.

Tuesday brought a gain of 1.11 percent to 6,500 for the IPC. Industrial group Alfa climbed 4.32 percent after issuing a strong earnings report. Televisa added 1.78 percent.

The IPC ticked up to 6,510 Wednesday. Retailer Elektra fared well, adding 1.75 percent, while Wal-Mart de Mexico climbed 1.32 percent.

In Chile, the IPSA index ended Thursday up 0.58 percent at 1,110 on general optimism about the country's economic outlook. Steelmaker CAP gained more than 11 percent on hopes or rising steel prices.

Friday saw an absolutely flat close in weak trade. On Monday, the IPSA rose 0.46 percent to 1,115 on hopes for good earnings reports from corporations. Flagship airline LanChile gained 6.9 percent, electricity company Endesa added 1 percent.

Tuesday saw the IPSA jump more than 2 percent to 1,139. Investors were buoyed by domestic news, including an unemployment rate that fell 0.6 percent to 8.2 percent for the January to March period, compared to the same time the previous year. Endesa added 3.7 percent.

Wednesday brought a nice 2.21 percent gain to 1,164 for the IPSA. Supermarket D&S climbed 6.6 percent.

Argentina's Merval index finished Thursday down 2.74 percent at 651.7. Investors were antsy ahead of the Sunday election, and some profit taking was to blame as the index hit five-year highs earlier in the week.

On Friday, the index bounced back, gaining 2.2 percent to 665.97 in light trade. Analysts said investors were bullish on the possibility of having two market-friendly candidates making into the country's second-round vote.

Monday brought investors the news that only one of the business-friendly candidates -- Menem -- made it to the second-round vote, sparking a loss of 8.6 percent to 608.5 for the Merval. Banks were hit hard, with Grupo Financiero Galicia shedding 13.7 percent and Banco Frances losing 12.9 percent.

Yet the Merval came back on Tuesday, climbing 2.3 percent to 622.5. Banks recovered somewhat, with Frances rising 2.8 percent and Banco Bansud rising 2.5 percent. Telecom Argentina gained 5.3 percent.

On Wednesday, the Merval gained 2.16 percent to 635.9. Steelmaker Acindar gained 9.6 percent, Banco Frances added 2.77 percent, and Telecom Argentina rose 5.69 percent.

In Venezuela, the IBC finished Thursday slightly up at 8,434, then lost to 8,403 Friday. Monday brought another loss to 8,363, before gaining nicely Tuesday to 8,620.

On Wednesday, the IBC ended slightly down at 8,631. Copyright © 2001-2003 United Press International   View printer-friendly version     Copyright © 2001-2003, by United Press International. All rights reserved. This material may not be republished, rebroadcast, rewritten, redistributed, resold or manipulated in any form.

Thu May 1, 2003 08:05 AM ET

NEW YORK (<a href=reuters.com>Reuters) - Exxon Mobil Corp. XOM.N , the world's largest publicly traded oil company, on Thursday said its first-quarter profit more than tripled, boosted by surging oil and gas prices.

The Irving, Texas, company reported first-quarter net income of $7.04 billion, or $1.05 a share, compared with net income of $2.09 billion, or 30 cents a share, in the year-ago quarter.

 RELATED ARTICLES Exxon Mobil - Venezuela Heavy Oil at Full SteamExcluding special items, Exxon posted earnings per share of 71 cents. On that basis, analysts forecast average earnings of 70 cents a share, according to research firm Thomson First Call.

Revenue rose to $63.78 billion from $43.39 billion in the prior-year quarter.

Supply concerns linked to the war in Iraq, a strike in Venezuela and civil unrest in Nigeria -- all key oil-producing nations -- sent crude oil prices up 57 percent in the first quarter, with benchmark West Texas Intermediate spot prices averaging $33.94 a barrel.

Natural gas prices more than doubled in the same period, driven by concerns about dwindling supplies and tight inventories.

As fears about major supply disruptions recede and the oil markets brace for potentially higher output from post-war Iraq, crude oil prices are likely to fall. That will temper the upstream, or exploration and production, earnings.

However, falling oil prices help reduce costs for refiners, which use crude oil to make jet fuel, heating oil and gasoline. With supplies already below five-year averages, many analysts expect prices and margins for oil products to remain high.

Shares of Exxon Mobil, a component of the Dow Jones industrial average, closed Wednesday trade on the New York Stock Exchange at $35.20. During the first quarter, the stock was relatively unchanged, slightly underperforming the Standard & Poor's Standard & Poor's Integrated Oil & Gas index .GSPOILI which increased less than 1 percent in the same period.