Exxon Mobil profit was $9.25bn in the latest quarter compared with $6.05bn in the same period last year. Photograph: Donna Mcwilliam/AP

Profits at Exxon Mobil, the world's largest oil company, soared 53% in fourth quarter profits powered by rising oil prices and natural gas.

Exxon's profits were $9.25bn (£5.8bn) compared with $6.05bn for same the period a year ago. The profits were Exxon's largest for more than two years. Total revenue in the quarter was $105.2bn, up from $89.8bn in the quarter a year earlier. For the year Exxon made $30.46bn compared to $19.4 bn in 2009.

Demand for oil and gas rose last year and is expected to rise again this year. The company benefited from higher profits in its chemicals and refining units. Analysts said it also benefited from a lower tax rate in the fourth quarter of 38% compared with an expected 46%.

Oil and natural-gas output rose 19% during the fourth quarter to the equivalent of 4.97m barrels a day, the most in the 128-year history of the company. Last year Exxon made its biggest acquisition since 1999, buying XTO Energy, the US's largest natural gas company for $41bn.

David Rosenthal, vice president investor relations, said the global economy appeared to be stabilising with modest economic growth in the US and Europe and stronger growth in the developing world.

The company announced it had spent a record $32.2bn over the year on capital and exploration. Exxon Mobil spent $5.8bn for stock repurchases, buying back 83m shares. The total included $5bn of buybacks to reduce outstanding shares.

Oil prices have been steadily climbing in recent months. Exxon's soaring profits come after similarly large increases at its rivals. Last week Chevron, the number two US oil firm, reported a 72% rise in its fourth quarter earnings. Third placed ConocoPhillips reported a 46% rise for the fourth quarter.

The price of Brent Crude has risen to $100 on fears that political turmoil in Egypt will disrupt supplies. Egypt is not a big oil supplier, producing 700,000 barrels a day. But prices are rising on fears that the unrest will disrupt the 2m-plus barrels that pass through the Suez canal and Sumed pipeline and that the trouble will spread to neighbouring countries.

Phil Flynn, oil analyst at PFG Trading in Chicago, said: "Contagion is the biggest risk. If this unrest spreads then we could see prices go up dramatically."

Source: The Guardian (UK)