Reason Behind the Financial Success of Exxonmobil with Regards to Bp Who Has a 20% Debt While Exxonmobil Has a -1% Debt.

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In accounting terms Net income is total revenue minus all costs of operation, interest on debt, and taxes. Net income is the amount available to management to use for providing a return to shareholders, or pursuing strategic goals for the company. Each business segment of the companies’ operations contributes to the total. The most used aggregate measures of net income sources in the oil industry are the upstream (exploration and production) and downstream (refining and marketing) sectors. Both BP and ExxonMobil are giant, integrated organizations with exposure to oil, natural gas, refining, and downstream products. Net incomes of these oil companies generally follow the behavior of oil prices, focusing on their Net Income between 2007 and 2011 were record profit years for the industry. BP’s 2010 net income was affected by the costs to the company of the Macondo oil spill in the Gulf of Mexico. BP’s adjusted income in 2010 was $14.2 billion,while ExxonMobil profit were $30.5 billion, up 57% from 2009. BP's total debt has increased over the past five years. The company reported a five-year low of $31.045 billion in 2007, and a five-year high in 2010 at $45.336 billion. In 2011, the company reported a total debt of $44.213 billion, which was an increase of 42.42% over 2007. (2012.02)”Financial Performance”. While BP is based in London, and Exxon in the US. Both are accused of oil spills. Exxon is remembered for a damning oil spill in 1989, while BP is held responsible for a disaster in the Gulf of Mexico as recently as April 2010. The value of shares of BP plummeted by as much as 13% in the aftermath of the tragedy, which is much more than a fall of 4% that stocks of Exxon experienced after the environmental tragedy that shook the world in 1989. Exxon easily managed to recover, while BP is still reeling under the effects of the mishap that cause reverberations

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