• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Exxon Mobil Corporation Announces Estimated First Quarter 2008 Results

Posted on: Thursday, 1 May 2008, 09:00 CDT

Exxon Mobil Corporation (NYSE:XOM):

First Quarter

2008

2007

%

Net Income

$ Millions

10,890

9,280

17

$ Per Common Share

Assuming Dilution

2.03

1.62

25

Special Items

$ Millions

0

0

Earnings Excluding Special Items

$ Millions

10,890

9,280

17

$ Per Common Share

Assuming Dilution

2.03

1.62

25

Capital and Exploration

Expenditures - $ Millions

5,491

4,222

30

EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

"ExxonMobil's first quarter net income was a record $10,890 million, up 17% from the first quarter of 2007. Earnings per share were up 25% reflecting the impact of the continuing share purchase program. Higher crude oil and natural gas realizations, driven by record worldwide crude oil prices, were partly offset by lower refining and chemical margins, lower production volumes and higher operating costs.

"Spending on capital and exploration projects was $5.5 billion in the first quarter, up 30% from last year, as we continued to actively invest in projects to bring additional crude oil, natural gas and finished products to market.

"Share purchases to reduce shares outstanding were increased to $8.0 billion in the first quarter of 2008. The Corporation distributed a total of $9.9 billion to shareholders during the quarter through dividends and share purchases to reduce shares outstanding, an increase of 13% or $1.1 billion versus the first quarter of 2007."

FIRST QUARTER HIGHLIGHTS

Record first quarter net income was $10,890 million, up 17% from the first quarter of 2007.

Earnings per share were up 25% to $2.03 reflecting strong earnings and the reduced number of shares outstanding.

Spending on capital and exploration projects was $5.5 billion, up 30% from the first quarter of 2007.

Cash flow from operations and asset sales was approximately $21.8 billion, including asset sales of $0.4 billion.

Share purchases of $8.0 billion reduced shares outstanding by 1.8%.

The ExxonMobil-operated Kizomba C deepwater development started production from the Mondo field in January 2008, 23 months after project approval. Kizomba C is designed to develop 600 million barrels of oil (gross) from the Mondo, Saxi and Batuque fields off the coast of Angola, utilizing two new floating production, storage, and offloading (FPSO) vessels. The Saxi and Batuque fields are expected to begin production later in 2008, and combined peak production from the three fields is expected to reach 200,000 barrels of oil per day (gross).

ExxonMobil and Malaysia's national oil company, PETRONAS, signed the main principles agreement for a new 25 year production sharing contract (PSC), to further develop petroleum resources offshore Peninsular Malaysia. The contract includes commitments to implement significant enhanced oil recovery activities and for major investments to continue conventional oil development.

First Quarter 2008 vs. First Quarter 2007

Upstream earnings were $8,785 million, up $2,744 million from the first quarter of 2007. Record high crude oil and natural gas realizations increased earnings approximately $4.4 billion. Volume and mix effects decreased earnings about $800 million, as increased natural gas volumes were more than offset by lower crude oil volumes. Higher taxes, increased operating costs and lower gains on asset sales decreased earnings approximately $900 million.

On an oil-equivalent basis, production decreased 5.6% from the first quarter of 2007. Excluding the Venezuela expropriation, divestments, OPEC quota effects and price and spend impacts on volumes, production was down 3%.

Liquids production totaled 2,474 kbd (thousands of barrels per day), down 272 kbd from the first quarter of 2007. Excluding the Venezuela expropriation, divestments, OPEC quota effects and price and spend impacts on volumes, liquids production was down 6%. Increased production from projects in west Africa and the North Sea was more than offset by mature field decline, PSC net interest reductions and maintenance activities.

First quarter natural gas production was 10,246 mcfd (millions of cubic feet per day), up 132 mcfd from 2007. Higher European demand and North Sea project additions were partly offset by mature field decline.

Earnings from U.S. Upstream operations were $1,631 million, $454 million higher than the first quarter of 2007. Non-U.S. Upstream earnings were $7,154 million, up $2,290 million from 2007.

Downstream earnings of $1,166 million were $746 million lower than the first quarter of 2007. Significantly lower worldwide refining margins decreased earnings approximately $1.0 billion, while improved refinery operations increased earnings about $350 million. Petroleum product sales of 6,821 kbd were 377 kbd lower than last year's first quarter, mainly reflecting asset sales.

U.S. Downstream earnings were $398 million, down $441 million from the first quarter of 2007. Non-U.S. Downstream earnings of $768 million were $305 million lower.

Chemical earnings of $1,028 million were $208 million lower than the first quarter of 2007. Lower margins, which decreased earnings approximately $350 million, were partly offset by favorable foreign exchange and tax effects. Prime product sales of 6,578 kt (thousands of metric tons) in the first quarter of 2008 were 227 kt lower than the prior year.

Corporate and financing expenses were $89 million, up $180 million, mainly due to higher corporate costs and tax items.

During the first quarter of 2008, Exxon Mobil Corporation purchased 110 million shares of its common stock for the treasury at a gross cost of $9.5 billion. These purchases included $8.0 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. Shares outstanding were reduced from 5,382 million at the end of the fourth quarter to 5,284 million at the end of the first quarter. 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.

ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. Central time on May 1, 2008. To listen to the event live or in archive, go to our website at exxonmobil.com.

Statements in this release relating to future plans, projections, events or conditions are forward-looking statements. Actual results, including project plans, capacities, and timing and resource recoveries, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; 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" on our website and in Item 1A of ExxonMobil's 2007 Form 10-K. We assume no duty to update these statements as of any future date. References to quantities of oil expected to be developed may include amounts not yet classified as proved reserves but that we believe will ultimately be produced.

Consistent 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. A reconciliation to net income 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 Investor Information section of our website at exxonmobil.com.

Attachment I

EXXON MOBIL CORPORATION

FIRST QUARTER 2008

(millions of dollars, unless noted)

First Quarter

2008

2007

Earnings / Earnings Per Share

Total revenues and other income

116,854

87,223

Total costs and other deductions

96,662

71,159

Income before income taxes

20,192

16,064

Income taxes

9,302

6,784

Net income (U.S. GAAP)

10,890

9,280

Net income per common share (dollars)

2.05

1.64

Net income per common share - assuming dilution (dollars)

2.03

1.62

Other Financial Data

Dividends on common stock

Total

1,879

1,825

Per common share (dollars)

0.35

0.32

Millions of common shares outstanding

At March 31

5,284

5,633

Average - assuming dilution

5,362

5,714

Shareholders' equity at March 31

123,139

114,110

Capital employed at March 31

135,503

124,266

Income taxes

9,302

6,784

Sales-based taxes

8,432

7,284

All other taxes

11,607

10,408

Total taxes

29,341

24,476

ExxonMobil's share of income taxes of equity companies

1,005

573

Attachment II

EXXON MOBIL CORPORATION

FIRST QUARTER 2008

(millions of dollars)

First Quarter

2008

2007

Net Income (U.S. GAAP)

Upstream

United States

1,631

1,177

Non-U.S.

7,154

4,864

Downstream

United States

398

839

Non-U.S.

768

1,073

Chemical

United States

284

346

Non-U.S.

744

890

Corporate and financing

(89

)

91

Corporate total

10,890

9,280

Special Items

Upstream

United States

0

0

Non-U.S.

0

0

Downstream

United States

0

0

Non-U.S.

0

0

Chemical

United States

0

0

Non-U.S.

0

0

Corporate and financing

0

0

Corporate total

0

0

Earnings Excluding Special Items

Upstream

United States

1,631

1,177

Non-U.S.

7,154

4,864

Downstream

United States

398

839

Non-U.S.

768

1,073

Chemical

United States

284

346

Non-U.S.

744

890

Corporate and financing

(89

)

91

Corporate total

10,890

9,280

Cash flow from operations and asset sales (billions of dollars)

Net cash provided by operating activities (U.S. GAAP)

21.4

14.3

Sales of subsidiaries, investments and property, plant and equipment

0.4

0.5

Cash flow from operations and asset sales

21.8

14.8

Attachment III

EXXON MOBIL CORPORATION

FIRST QUARTER 2008

First Quarter

2008

2007

Net production of crude oil and natural gas liquids, thousands of barrels daily (kbd)

United States

388

416

Canada/South America

297

330

Europe

461

524

Africa

635

782

Asia Pacific/Middle East

498

508

Russia/Caspian

195

186

Worldwide

2,474

2,746

Natural gas production available for sale, millions of cubic feet daily (mcfd)

United States

1,305

1,514

Canada/South America

663

852

Europe

5,126

4,609

Africa

34

25

Asia Pacific/Middle East

2,994

2,998

Russia/Caspian

124

116

Worldwide

10,246

10,114

Oil-equivalent production (koebd)1

4,182

4,432

1Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels

Attachment IV

EXXON MOBIL CORPORATION

FIRST QUARTER 2008

First Quarter

2008

2007

Refinery throughput (kbd)

United States

1,759

1,798

Canada

425

441

Europe

1,572

1,641

Asia Pacific

1,449

1,504

Other

321

321

Worldwide

5,526

5,705

Petroleum product sales (kbd)

United States

2,548

2,774

Canada

441

449

Europe

1,707

1,812

Asia Pacific

1,410

1,428

Other

715

735

Worldwide

6,821

7,198

Gasolines, naphthas

2,666

2,858

Heating oils, kerosene, diesel

2,089

2,195

Aviation fuels

612

633

Heavy fuels

687

726

Specialty products

767

786

Worldwide

6,821

7,198

Chemical prime product sales, thousands of metric tons (kt)

United States

2,555

2,731

Non-U.S.

4,023

4,074

Worldwide

6,578

6,805

Attachment V

EXXON MOBIL CORPORATION

FIRST QUARTER 2008

(millions of dollars)

First Quarter

2008

2007

Capital and Exploration Expenditures

Upstream

United States

591

466

Non-U.S.

3,504

3,003

Total

4,095

3,469

Downstream

United States

351

212

Non-U.S.

476

319

Total

827

531

Chemical

United States

99

84

Non-U.S.

467

135

Total

566

219

Other

3

3

Worldwide

5,491

4,222

Exploration expenses charged to income included above

Consolidated affiliates

United States

53

89

Non-U.S.

283

179

Equity companies - ExxonMobil share

United States

0

1

Non-U.S.

2

2

Worldwide

338

271

Attachment VI

EXXON MOBIL CORPORATION

NET INCOME

$ Millions

$ Per Common Share

2004

First Quarter

5,440

0.83

Second Quarter

5,790

0.89

Third Quarter

5,680

0.88

Fourth Quarter

8,420

1.31

Year

25,330

3.91

2005

First Quarter

7,860

1.23

Second Quarter

7,640

1.21

Third Quarter

9,920

1.60

Fourth Quarter

10,710

1.72

Year

36,130

5.76

2006

First Quarter

8,400

1.38

Second Quarter

10,360

1.74

Third Quarter

10,490

1.79

Fourth Quarter

10,250

1.77

Year

39,500

6.68

2007

First Quarter

9,280

1.64

Second Quarter

10,260

1.85

Third Quarter

9,410

1.72

Fourth Quarter

11,660

2.15

Year

40,610

7.36

2008

First Quarter

10,890

2.05

Source: Business Wire

More News in this Category