Market Overview

Oil Industry Profit Margin Ranks #114 out 215

The table below shows industry rankings for net profit margin (profits / sales) of the top 114 industries out of 215 total industries during the most recent quarter, from Yahoo!Finance.  

The top five oil companies (Chevron, Shell, BP, ExxonMobil and BP) are part of the "Major Integrated Oil and Gas" industry, and the CEOs of the "Big Five" are appearing today before the Senate Committee on Finance, to get grilled about the "taxpayer subsidies" and "tax breaks" they receive, explain why they deserve to earn record "windfall" profits, and explain the role they play in higher oil and gas prices.  

As the table below shows, the Integrated Oil and Gas industry made an average profit of 6.2 cents per dollar of sales, which ranks #114 out of 215 industries by profit margin, and puts oil companies right in the middle of industries by profitability.  

If the Senate Finance Committee wants to investigate "excessive" or "windfall" profits, they might consider going after some of the other industries that have benefited from higher commodity prices and achieved much higher profit margins than oil (at 6.2%), like silver (44.7%), copper (24%),  gold (21%), and industrial metals (21%) and lumber (17.7%).   


Rank Industry Net Profit Margin
1 Closed-End Fund - Equity 81%
2 Publishing - Periodicals 51.7
3 Silver 44.7
4 Closed-End Fund - Foreign 38.3
5 REIT - Diversified 36
6 Copper 24
7 Internet Information Providers 23.8
8 Application Software 22.7
9 Foreign Utilities 20.5
10 Industrial Metals and Minerals 20.1
11 Gold 20.1
12 Cigarettes 19.8
13 Semiconductor - Broad Line 19.2
14 REIT - Healthcare Facilities 19.1
15 Lumber, Wood Production 17.7
16 Semiconductor - Integrated Circuits 17.6
17 Diversified Investments 17.5
18 Healthcare Information Services 16.6
19 Beverages - Brewers 16.5
20 Regional - Southwest Banks 16.4
21 Semiconductor- Memory Chips 16.1
22 Publishing - Books 16.1
23 Networking and Communication Devices 15.7
24 Drug Manufacturers - Major 15.4
25 Long Distance Carriers 15.2
26 Railroads 15
27 Beverages - Wineries and Distillers 14.9
28 Nonmetallic Mineral Mining 14.6
29 Beverages - Soft Drinks 14.3
30 Wireless Communications 14.1
31 Semiconductor Equipment and Materials 14.1
32 Personal Products 13.9
33 Personal Computers 13.9
34 Medical Instruments and Supplies 13.9
35 Drug Manufacturers - Other 13.6
36 Security Software and Services 13.2
37 Property and Casualty Insurance 13.2
38 Agricultural Chemicals 13
39 Specialty Chemicals 12.7
40 REIT - Residential 12.7
41 Biotechnology 12.7
42 Medical Appliances & Equipment 12.6
43 Technical and System Software 12.5
44 Mortgage Investment 12.5
45 Entertainment - Diversified 12.5
46 Air Services, Other 12.4
47 Diversified Electronics 11.9
48 Processed and Packaged Goods 11.5
49 Foreign Regional Banks 11.5
50 Water Utilities 10.9
51 Semiconductor - Specialized 10.5
52 Money Center Banks 10.5
53 Consumer Services 10.5
54 Broadcasting - TV 10.5
55 Regional - Midwest Banks 10.4
56 Toys and Games 10.1
57 Textile - Apparel Footwear 10.1
58 Restaurants 10
59 Investment Brokerage - National 10
60 Oil and Gas Drilling and Exploration 9.9
61 Paper and Paper Products 9.8
62 Foreign Money Center Banks 9.8
63 Regional - Northeast Banks 9.7
64 Business Software and Services 9.7
65 Synthetics 9.5
66 Scientific and Technical Instruments 9.5
67 Data Storage Devices 9.5
68 Internet Software and Services 9.4
69 CATV Systems 9.3
70 Specialty Eateries 9.2
71 Telecom Services - Domestic 9.1
72 Specialized Health Services 9
73 Diversified Computer Systems 9
74 Savings and Loans 8.9
75 Internet Service Providers 8.9
76 Conglomerates 8.8
77 Research Services 8.7
78 Diversified Machinery 8.7
79 Education and Training Services 8.4
80 Independent Oil and Gas 8.3
81 Industrial Equipment and Components 8.2
82 General Entertainment 8.2
83 Diversified Utilities 8.1
84 Asset Management 8.1
85 Accident and Health Insurance 8.1
86 Information and Delivery Services 8
87 Gas Utilities 8
88 Business Services 8
89 Telecom Services - Foreign 7.9
90 Oil  and Gas Equipment and Services 7.9
91 Insurance Brokers 7.8
92 Cleaning Products 7.8
93 Steel and  Iron 7.7
94 Drug Related Products 7.7
95 Home Furnishing Stores 7.6
96 Diagnostic Substances 7.6
97 Auto Parts Stores 7.3
98 Industrial Electrical Equipment 7.2
99 Waste Management 7
100 Confectioners 7
101 Aerospace/Defense - Major Diversified 7
102 Publishing - Newspapers 6.9
103 Jewelry Stores 6.9
104 Home Health Care 6.9
105 Computer Based Systems 6.9
106 Pollution & Treatment Controls 6.8
107 Lodging 6.8
108 Communication Equipment 6.7
109 Aerospace/Defense Products & Services 6.6
110 Sporting Activities 6.5
111 Packaging & Containers 6.5
112 Catalog & Mail Order Houses 6.5
113 Drugs - Generic 6.3
114 Major Integrated Oil and Gas 6.2

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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