15:00 | 28.10.2010
Exxon Mobil Corporation Announces Estimated Third Quarter 2010 Results
Exxon Mobil Corporation (NYSE:XOM):
Third Quarter
Nine Months
2010
2009
%
2010
2009
%Earnings Excluding Special Items
1
$ Millions
7,350
4,730
55
21,210
13,370
59
$ Per Common Share
Assuming Dilution
1.44
0.98
47
4.37
2.74
59
Special Items
$ Millions
0
0
0
(140
)
Earnings
$ Millions
7,350
4,730
55
21,210
13,230
60
$ Per Common Share
Assuming Dilution
1.44
0.98
47
4.37
2.71
61
Capital and Exploration
Expenditures – $ Millions
8,769
6,493
35
22,165
18,829
18
1 See Reference to Earnings
EXXONMOBIL’S CHAIRMAN REX W. TILLERSON COMMENTED:
“Despite continuing economic uncertainty, we had strong quarterly
results and continued to advance our robust investment opportunities.Third quarter earnings were $7.4 billion, up 55% from third quarter
of last year due to higher crude oil and natural gas realizations,
improved refining margins, and solid chemical results.Earnings
for the first nine months of 2010, excluding special items, were $21.2
billion, up 59% over the first nine months of 2009.”Oil-equivalent production was over 20% higher than the third quarter
of 2009, driven by our world-class assets in Qatar and our recent
unconventional gas acquisition.”Capital and exploration spending for the first nine months of 2010
was $22.2 billion, up 18% from the first nine months of last year.”The Corporation returned over $5 billion to shareholders in the
third quarter through dividends and share purchases to reduce shares
outstanding.”THIRD QUARTER HIGHLIGHTS
Earnings were $7,350 million, an increase of 55% or $2,620 million
from the third quarter of 2009.
Earnings per share were $1.44, an increase of 47%.
Capital and exploration expenditures were $8.8 billion, up 35% from
the third quarter of 2009.
Oil-equivalent production increased over 20% from the third quarter of
2009. Excluding the impacts of entitlement volumes, OPEC quota effects
and divestments, production was up 20%.
Cash flow from operations and asset sales was $13.9 billion, including
asset sales of $0.8 billion.
Share purchases to reduce shares outstanding were $3 billion.
Dividends per share of $0.44 increased by 5% compared to the third
quarter of 2009.
During the third quarter, production began from the Odoptu field, the
latest development phase of the Sakhalin-1 project in Russia.
ExxonMobil announced the commissioning of new units to produce ultra
low sulfur diesel at its Baytown, Texas and Baton Rouge, Louisiana
refineries. This will enable ExxonMobil to increase the supply of
ultra low sulfur diesel by over 3 million gallons a day.
Third Quarter 2010 vs. Third Quarter 2009
Upstream earnings were $5,467 million, up $1,455 million from the third
quarter of 2009. Higher crude oil and natural gas realizations increased
earnings by $1 billion, while higher liquids and gas volumes improved
earnings by $270 million.
On an oil-equivalent basis, production increased over 20% from the third
quarter of 2009. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production was up 20%.
Liquids production totaled 2,421 kbd (thousands of barrels per day), up
86 kbd or nearly 4% from the third quarter of 2009. Excluding the
impacts of entitlement volumes, OPEC quota effects and divestments,
liquids production was up 3%, as increased production from projects in
Qatar and the addition of XTO volumes more than offset net field decline.
Third quarter natural gas production was 12,192 mcfd (millions of cubic
feet per day), up 4,037 mcfd from 2009, driven by additional U.S.
unconventional gas volumes and project ramp-ups in Qatar.
Earnings from U.S. Upstream operations were $999 million, $290 million
higher than the third quarter of 2009. Non-U.S. Upstream earnings were
$4,468 million, up $1,165 million from last year.
Downstream earnings of $1,160 million were up $835 million from the
third quarter of 2009. Higher industry refining margins, partly offset
by lower marketing margins increased earnings by $300 million. Volume
and product mix effects increased earnings by $150 million while other
factors, mainly asset sales and favorable foreign exchange impacts,
increased earnings by $390 million. Petroleum product sales of 6,574 kbd
were 273 kbd higher than last year’s third quarter, mainly reflecting
higher demand.
Earnings from the U.S. Downstream were $164 million, up $367 million
from the third quarter of 2009. Non-U.S. Downstream earnings of
$996 million were $468 million higher than last year.
Chemical earnings of $1,229 million were $353 million higher than the
third quarter of 2009. Improved margins increased earnings by $370
million. Third quarter prime product sales of 6,558 kt (thousands of
metric tons) were 202 kt higher than the prior year primarily due to
improved global demand and start-up of the Fujian facility in China.
Corporate and financing expenses were $506 million, up $23 million from
the third quarter of 2009.
During the third quarter of 2010, Exxon Mobil Corporation purchased 54
million shares of its common stock for the treasury at a gross cost of
$3.3 billion. These purchases included $3 billion to reduce the number
of shares outstanding, with the balance used to offset shares issued in
conjunction with the company’s benefit plans and programs. Share
purchases to reduce shares outstanding are currently anticipated to
equal $5 billion in the fourth quarter of 2010. Purchases may be made in
both the open market and through negotiated transactions, and may be
increased, decreased or discontinued at any time without prior notice.
First Nine Months 2010 vs. First Nine Months
2009
Earnings of $21,210 million ($4.37 per share) increased $7,980 million
from 2009. Excluding special items, earnings for the first nine months
of 2010 increased $7,840 million from 2009.
FIRST NINE MONTHS HIGHLIGHTS
Earnings excluding special items were $21,210 million, up 59%.
Earnings per share excluding special items increased 59% to $4.37.
Earnings were up 60% from 2009. Earnings for 2009 included a special
charge of $140 million for interest related to the Valdez punitive
damages award. Earnings for the first nine months of 2010 did not
include any special items.
Oil equivalent production was up 11% from 2009. Excluding the impacts
of entitlement volumes, OPEC quota effects and divestments, production
was up 12%.
Cash flow from operations and asset sales was $37 billion, including
$1.6 billion from asset sales.
The Corporation distributed over $12 billion to shareholders in the
first nine months of 2010 through dividends and share purchases to
reduce shares outstanding.
Capital and exploration expenditures were $22.2 billion, up 18% versus
2009.
Upstream earnings were $16,617 million, up $5,290 million from 2009.
Higher crude oil and natural gas realizations increased earnings
approximately $5.1 billion. The favorable impact of higher volumes of
$590 million was partially offset by higher operating costs of $340
million.
On an oil-equivalent basis, production was up 11% compared to the first
nine months of 2009. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production was up 12%.
Liquids production of 2,387 kbd increased 2 kbd compared with 2009.
Excluding the impacts of entitlement volumes, OPEC quota effects and
divestments, liquids production increased 1% compared with 2009, as new
volumes from project ramp-ups in Qatar were offset by net field decline.
Natural gas production of 11,304 mcfd increased 2,518 mcfd from 2009,
driven by higher volumes from Qatar projects and additional U.S.
unconventional gas volumes.
Earnings from U.S. Upstream operations for 2010 were $2,955 million, an
increase of $1,073 million from 2009. Non-U.S. Upstream earnings were
$13,662 million, up $4,217 million from 2009.
Downstream earnings of $2,417 million were $447 million higher than
2009. Positive sales volume mix effects increased earnings by $430
million. Negative foreign exchange impacts of $320 million were offset
by favorable tax items. Petroleum product sales of 6,359 kbd decreased
48 kbd.
U.S. Downstream earnings were $544 million, up $410 million from 2009.
Non-U.S. Downstream earnings were $1,873 million, $37 million higher
than last year.
Chemical earnings of $3,846 million increased $2,253 million from 2009.
Improved margins increased earnings by approximately $1.7 billion while
higher volumes increased earnings about $370 million. Prime product
sales of 19,542 kt were up 1,392 kt from 2009.
Corporate and financing expenses excluding special items were
$1,670 million, up $150 million from 2009 mainly due to a tax charge
related to the U.S. health care legislation during the first quarter of
2010.
Gross share purchases through the first nine months of 2010 were $7.3
billion, reducing shares outstanding by 115 million shares.
Estimates of key financial and operating data follow.
ExxonMobil will discuss financial and operating results and other
matters on a webcast at 10 a.m. Central time on October 28, 2010.Slides
for the webcast will be posted on our website at approximately 9 a.m.
Central time.To listen to the event live or in archive, go to
our website at exxonmobil.com.Cautionary statementStatements in this release relating to future plans, projections,
events or conditions are forward-looking statements.Actual
results, including project plans, costs, timing, and capacities; capital
and exploration expenditures; and share purchase levels, could differ
materially due to factors including: changes in long-term oil or gas
prices or other market or economic conditions affecting the oil and gas
industry; unforeseen technical difficulties; political events or
disturbances; reservoir performance; the outcome of commercial
negotiations; wars and acts of terrorism or sabotage; changes in
technical or operating conditions; and other factors discussed under the
heading “Factors Affecting Future Results” in the “investors” section of
our website and in Item 1A of ExxonMobil’s 2009 Form 10-K. We assume no
duty to update these statements as of any future date. References to
quantities of oil or natural gas may include amounts that we believe
will ultimately be produced, but that are not yet classified as “proved
reserves” under SEC definitions.Frequently used termsConsistent with previous practice, this press release includes both
earnings excluding special items and earnings per share excluding
special items.Both are non-GAAP financial measures and are
included to help facilitate comparisons of base business performance
across periods.Reconciliation to net income attributable to
ExxonMobil is shown in Attachment II.The release also includes
cash flow from operations and asset sales.Because of the regular
nature of our asset management and divestment program, we believe it is
useful for investors to consider sales proceeds together with cash
provided by operating activities when evaluating cash available for
investment in the business and financing activities. A reconciliation to
net cash provided by operating activities is shown in Attachment II.Further
information on ExxonMobil’s frequently used financial and operating
measures and other terms is contained under the heading “Frequently Used
Terms” available through the “investors” section of our website at
exxonmobil.com.Reference to EarningsReferences to total corporate earnings mean net income attributable
to ExxonMobil (U.S. GAAP) from the income statement.Unless
otherwise indicated, references to earnings, special items, earnings
excluding special items, Upstream, Downstream, Chemical and Corporate
and Financing segment earnings, and earnings per share are ExxonMobil’s
share after excluding amounts attributable to noncontrolling interests.
Attachment I
EXXON MOBIL CORPORATIONTHIRD QUARTER 2010
(millions of dollars, unless noted)
Third Quarter
Nine Months
2010
2009
2010
2009Earnings / Earnings Per Share
Total revenues and other income
95,298
82,260
278,035
220,745
Total costs and other deductions
82,440
73,056
240,403
196,174
Income before income taxes
12,858
9,204
37,632
24,571
Income taxes
5,297
4,333
15,750
11,052
Net income including noncontrolling interests
7,561
4,871
21,882
13,519
Net income attributable to noncontrolling interests
211
141
672
289
Net income attributable to ExxonMobil (U.S. GAAP)
7,350
4,730
21,210
13,230
Earnings per common share (dollars)
1.44
0.98
4.38
2.72
Earnings per common share
– assuming dilution (dollars)
1.44
0.98
4.37
2.71
Other Financial Data
Dividends on common stock
Total
2,234
2,011
6,286
6,031
Per common share (dollars)
0.44
0.42
1.30
1.24
Millions of common shares outstanding
At September 30
5,043
4,747
Average – assuming dilution
5,089
4,803
4,851
4,878
ExxonMobil share of equity at September 30
145,031
107,265
ExxonMobil share of capital employed at September 30
167,040
120,351
Income taxes
5,297
4,333
15,750
11,052
Sales-based taxes
7,172
6,805
20,933
18,927
All other taxes
10,071
9,729
28,664
27,442
Total taxes
22,540
20,867
65,347
57,421
ExxonMobil share of income taxes of
equity companies
881
515
2,691
1,616
Attachment II
EXXON MOBIL CORPORATIONTHIRD QUARTER 2010
(millions of dollars)
Third Quarter
Nine Months
2010
2009
2010
2009
Earnings (U.S. GAAP)
Upstream
United States
999
709
2,955
1,882
Non-U.S.
4,468
3,303
13,662
9,445
Downstream
United States
164
(203
)
544
134
Non-U.S.
996
528
1,873
1,836
Chemical
United States
676
315
1,900
477
Non-U.S.
553
561
1,946
1,116
Corporate and financing
(506)
(483
)
(1,670)
(1,660
)
Net income attributable to ExxonMobil
7,350
4,730
21,210
13,230
Special Items
Upstream
United States
0
0
0
0
Non-U.S.
0
0
0
0
Downstream
United States
0
0
0
0
Non-U.S.
0
0
0
0
Chemical
United States
0
0
0
0
Non-U.S.
0
0
0
0
Corporate and financing
0
0
0
(140
)
Corporate total
0
0
0
(140
)
Earnings Excluding Special Items
Upstream
United States
999
709
2,955
1,882
Non-U.S.
4,468
3,303
13,662
9,445
Downstream
United States
164
(203
)
544
134
Non-U.S.
996
528
1,873
1,836
Chemical
United States
676
315
1,900
477
Non-U.S.
553
561
1,946
1,116
Corporate and financing
(506)
(483
)
(1,670)
(1,520
)
Corporate total
7,350
4,730
21,210
13,370
Cash flow from operations and asset sales (billions of
dollars)
Net cash provided by operating activities(U.S. GAAP)
13.1
8.8
35.4
19.9
Sales of subsidiaries, investments and property, plant and equipment
0.8
0.2
1.6
1.1
Cash flow from operations and asset sales
13.9
9.0
37.0
21.0
Attachment III
EXXON MOBIL CORPORATIONTHIRD QUARTER 2010
Third Quarter
Nine Months
2010
2009
2010
2009
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States
430
373
392
383
Canada/South America
253
267
261
272
Europe
294
350
335
381
Africa
631
666
632
694
Asia Pacific/Middle East
633
494
583
474
Russia/Caspian
180
185
184
181
Worldwide
2,421
2,335
2,387
2,385
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States
3,726
1,292
2,167
1,268
Canada/South America
550
646
570
643
Europe
2,365
2,545
3,580
3,449
Africa
15
16
16
21
Asia Pacific/Middle East
5,371
3,510
4,790
3,263
Russia/Caspian
165
146
181
142
Worldwide
12,192
8,155
11,304
8,786
Oil-equivalent production (koebd) 1
4,453
3,694
4,271
3,849
1 Gas converted to oil-equivalent at 6 million cubic feet
= 1 thousand barrels
Attachment IV
EXXON MOBIL CORPORATIONTHIRD QUARTER 2010
Third Quarter
Nine Months
2010
2009
2010
2009
Refinery throughput (kbd)
United States
1,752
1,751
1,760
1,773
Canada
453
417
437
414
Europe
1,550
1,542
1,550
1,540
Asia Pacific
1,304
1,349
1,230
1,321
Other
305
293
261
293
Worldwide
5,364
5,352
5,238
5,341
Petroleum product sales (kbd)
United States
2,534
2,462
2,480
2,525
Canada
450
412
439
411
Europe
1,656
1,607
1,626
1,615
Asia Pacific
1,278
1,292
1,229
1,328
Other
656
528
585
528
Worldwide
6,574
6,301
6,359
6,407
Gasolines, naphthas
2,680
2,593
2,594
2,556
Heating oils, kerosene, diesel
1,949
1,851
1,899
2,009
Aviation fuels
526
553
478
541
Heavy fuels
597
596
602
585
Specialty products
822
708
786
716
Worldwide
6,574
6,301
6,359
6,407
Chemical prime product sales,
thousands of metric tons (kt)
United States
2,628
2,525
7,601
7,087
Non-U.S.
3,930
3,831
11,941
11,063
Worldwide
6,558
6,356
19,542
18,150
Attachment V
EXXON MOBIL CORPORATIONTHIRD QUARTER 2010
(millions of dollars)
Third Quarter
Nine Months
2010
2009
2010
2009Capital and Exploration Expenditures
Upstream
United States
2,352
858
3,896
2,602
Non-U.S.
5,280
4,049
14,624
11,576
Total
7,632
4,907
18,520
14,178
Downstream
United States
201
396
812
1,156
Non-U.S.
357
435
1,004
1,138
Total
558
831
1,816
2,294
Chemical
United States
62
66
196
237
Non-U.S.
463
681
1,501
2,098
Total
525
747
1,697
2,335
Other
54
8
132
22
Worldwide
8,769
6,493
22,165
18,829
Exploration expenses charged to income
included above
Consolidated affiliates
United States
62
60
162
155
Non-U.S.
437
434
1,428
1,178
Equity companies – ExxonMobil share
United States
1
0
3
0
Non-U.S.
1
7
12
9
Worldwide
501
501
1,605
1,342
Attachment VI
EXXON MOBIL CORPORATIONEARNINGS
$ Millions
$ Per Common Share 1,2
2006
First Quarter
8,400
1.38
Second Quarter
10,360
1.72
Third Quarter
10,490
1.77
Fourth Quarter
10,250
1.77
Year
39,500
6.64
2007
First Quarter
9,280
1.63
Second Quarter
10,260
1.83
Third Quarter
9,410
1.71
Fourth Quarter
11,660
2.14
Year
40,610
7.31
2008
First Quarter
10,890
2.03
Second Quarter
11,680
2.24
Third Quarter
14,830
2.86
Fourth Quarter
7,820
1.55
Year
45,220
8.70
2009
First Quarter
4,550
0.92
Second Quarter
3,950
0.82
Third Quarter
4,730
0.98
Fourth Quarter
6,050
1.27
Year
19,280
3.99
2010
First Quarter
6,300
1.33
Second Quarter
7,560
1.61
Third Quarter
7,350
1.44
1 Computed using the average number of shares outstanding
during each period.
The sum of the four quarters may not add to the full year.
2 For periods prior to 2009, earnings per share (EPS)
numbers have been adjusted retrospectivelyon a consistent
basis with 2009 reporting when new authoritative guidance on EPS
was adopted.
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