The Rising Influence of Rising Affluence

[DewDiligence]

XOM, Shell 3Q12 earnings helped by refining margins:

http://www.nytimes.com/2012/11/02/business/energy-environment/earnings-at-oil-giants-helped-by-refining.html

A bright spot for both companies was improving results in their refining businesses. Exxon Mobil’s downstream earnings, mainly from refining, were nearly $3.2 billion, up $1.6 billion from the third quarter of 2011. But Simon Henry, Shell’s chief financial officer, noted in a conference call that improved refining margins were more the result of supply shortages than stronger demand. “We’re seeing evidence of a weak economy all around us in our downstream, marketing and our chemicals business,” Mr. Henry said, “so the downstream rally over all could be short-lived.”

Shell’s CEO and CFO have a habit of talking down good results, which may be a lingering consequence of the book-cooking scandal that enveloped the company almost a decade ago.