Oil majors' profits to soar on record crude

By Tom Bergin

LONDON (Reuters) - The world's five largest fully publicly traded oil companies are expected to, yet again, report record profits next week, thanks to high oil prices, even as investors fret over the recent pullback in crude.

In addition to earnings, investors will also be watching for news on controversial, long-delayed service agreements with Iraq and for signs soaring costs are easing.

Oil prices averaged over $120 a barrel in the second quarter -- almost double the level in the same period of 2007 -- before rising to a record high above $147/barrel on July 11.

Analysts predict this will push sector earnings up around 30 percent in the quarter compared to the same period in 2007, and is likely to attract further criticism from politicians and hard-pressed motorists.

Exxon Mobil (XOM.N), the world's largest non-government controlled oil company by market value, is predicted to post quarterly net income of over $13 billion (6.5 billion pounds) on Thursday, according to Reuters calculations, compared to $10.3 billion last year.

Earlier the same day, industry No. 2, Royal Dutch Shell (RDSa.L) is forecast to report a 20 percent rise in current cost of supply (CCS) net income, excluding one-off items, of $8.3 billion, according to a Reuters poll of 9 analysts.

BP (BP.L) is forecast to post a 44 percent rise in replacement cost (RC) net income, excluding one-offs such as field sales, to $7.7 billion, on Tuesday.

CCS and RC net income both strip out unrealised gains from changes in the value of inventories, making them comparable with net income under U.S. accounting rules.