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Exxon Mobil Corporation Announces Estimated Third Quarter 2005 Results

Posted on: Thursday, 27 October 2005, 09:00 CDT

Exxon Mobil Corporation (NYSE:XOM):

Third Quarter Nine Months ------------- --------------- 2005 2004 % 2005 2004 % ------ ------ --- ------- ------- --- Net Income -------------------------------- $ Millions 9,920 5,680 75 25,420 16,910 50 $ Per Common Share Assuming Dilution 1.58 0.88 80 4.00 2.59 54 Earnings Excluding Special Items -------------------------------- $ Millions 8,300 6,230 33 23,540 17,460 35 $ Per Common Share Assuming Dilution 1.32 0.96 38 3.70 2.67 39 Capital and Exploration Expenditures - $ Millions 4,414 3,634 12,368 10,652

Exxon Mobil Corporation (NYSE:XOM) today reported third quarter results. Earnings excluding special items were $8,300 million ($1.32 per share), an increase of $2,070 million from the third quarter of 2004. Third quarter net income also included a special gain of $1,620 million from the restructuring of the Corporation's interest in the Dutch gas transportation business ("Gasunie"). Including this gain, net income of $9,920 million ($1.58 per share) increased by $4,240 million.

ExxonMobil's Chairman Lee R. Raymond Commented:

"Third quarter results include the impacts from hurricanes Katrina and Rita, two of the most significant U.S. natural disasters in recent history. ExxonMobil's top priority is the safety of employees, contractors, and their families. Our response has been rapid and innovative, demonstrating the resilience of the global energy marketplace. Following the hurricanes, ExxonMobil maximized gasoline production from all of our refineries which were operating in the U.S., and increased imports from overseas affiliates to meet U.S. demand. We acted responsibly in pricing at our company operated service stations, and we also encouraged our independent retailers and distributors to do the same. Third quarter 2005 results were adversely impacted by the hurricanes, with U.S. production volumes down 50 thousand oil-equivalent barrels per day and additional costs of approximately $45 million before tax. Our earnings in the third quarter reflect the impact of the relatively volatile industry environment on commodity prices and industry margins. Reduced volumes and higher costs will also impact the fourth quarter.

ExxonMobil continued its active investment program in the third quarter, spending $4.4 billion on capital and exploration projects, bringing the year-to-date spending to $12.4 billion, an increase of $1.7 billion versus 2004. Our disciplined project management systems remain a competitive advantage, delivering new supplies of crude oil to the global market.

The Corporation distributed a total of $6.8 billion to shareholders in the third quarter through dividends and share purchases to reduce shares outstanding."

Third Quarter Highlights

-- Earnings excluding special items of $8,300 million ($1.32 per

share) increased $2,070 million from the third quarter of

2004.

-- Net income of $9,920 million includes a special gain of $1,620

million from the restructuring of the Corporation's interest

in the Dutch gas transportation business.

-- Cash flow from operations and asset sales was approximately

$16.5 billion, including asset sales of $0.8 billion.

-- Share purchases to reduce shares outstanding of $5.0 billion

increased $1.5 billion versus the second quarter of 2005.

-- Earnings per share excluding special items of $1.32 increased

38% reflecting strong earnings and the reduction in the number

of shares outstanding.

-- Production from the $3.5 billion (gross) Kizomba B project

started during the third quarter, more than five months ahead

of schedule. The project is designed to develop 1 billion

barrels of oil (gross) off the coast of Angola.

Third Quarter 2005 vs. Third Quarter 2004

Upstream earnings excluding the Gasunie special item were $5,729 million, up $1,800 million from the third quarter of 2004 reflecting higher crude oil and natural gas realizations.

On an oil-equivalent basis, production decreased by 4.7% from the third quarter of 2004. Excluding the impact of hurricanes Katrina and Rita, divestments, and entitlement effects, production decreased 1%.

Liquids production of 2,447 kbd (thousands of barrels per day) was 58 kbd lower. Higher production from new fields in West Africa was more than offset by the impact of mature field decline, hurricanes Katrina and Rita, maintenance activities, as well as entitlement and divestment impacts.

Third quarter natural gas production decreased to 7,724 mcfd (millions of cubic feet per day) compared with 8,488 mcfd last year. Higher volumes from projects in Qatar and the U.K. were more than offset by the impact of mature field decline, hurricanes Katrina and Rita, maintenance activities, as well as entitlement and divestment impacts.

Earnings from U.S. Upstream operations were $1,671 million, $498 million higher than last year's third quarter. Non-U.S. Upstream earnings, excluding the $1,620 million Gasunie special gain, were $4,058 million, up $1,302 million from 2004.

Downstream earnings were $2,128 million, up $727 million from the third quarter 2004, reflecting higher refining margins partly offset by weaker marketing margins. Petroleum product sales were 8,217 kbd, 25 kbd lower than last year's third quarter.

U.S. Downstream earnings were $1,109 million, up $548 million. Non-U.S. Downstream earnings of $1,019 million were $179 million higher than last year's third quarter.

Chemical earnings were $472 million, down $537 million from the same quarter a year ago with reduced margins due to increased feedstock costs. Prime product sales of 6,955 kt (thousands of metric tons) were down 162 kt from last year's third quarter.

Corporate and financing expenses of $29 million decreased by $80 million mainly due to higher interest income.

During the third quarter of 2005, Exxon Mobil Corporation purchased 91 million shares of its common stock for the treasury at a gross cost of $5,535 million. These purchases included $5.0 billion to reduce the number of shares outstanding and the balance to offset shares issued in conjunction with the company benefits plans and programs. Shares outstanding were reduced from 6,305 million at the end of the second quarter to 6,222 million at the end of the third 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.

First Nine Months 2005 vs. First Nine Months 2004

Net income of $25,420 million ($4.00 per share) for the first nine months of 2005 increased $8,510 million from the first nine months of 2004. Net income for the first nine months 2005 included a $1,620 million special gain related to Gasunie, a $460 million positive impact from the sale of the Corporation's stake in Sinopec, and a special charge of $200 million for the Allapattah lawsuit provision. Net income for the first nine months of 2004 included a $550 million special charge for the Allapattah lawsuit provision. Excluding these impacts, earnings for the first nine months of 2005 increased by $6,080 million.

First Nine Months Highlights

-- Earnings excluding special items of $23,540 million increased

by 35%, with improvements in all segments of the business.

-- Earnings per share excluding special items increased by 39%

reflecting strong earnings and the reduction in the number of

shares outstanding.

-- Cash flow from operations and asset sales was approximately

$42.3 billion, including $4.6 billion from asset sales.

-- The Corporation distributed a total of $16.4 billion to

shareholders in the first nine months through dividends and

share purchases to reduce shares outstanding.

-- Capital and exploration expenditures were $12.4 billion, an

increase of $1.7 billion versus 2004.

Upstream earnings excluding special items of $15,691 million increased $3,903 million from the first nine months of 2004 due to higher liquids and natural gas realizations partly offset by lower production.

On an oil-equivalent basis, production decreased 4.5% from the first nine months of last year. Excluding the impact of hurricanes Katrina and Rita, divestments and entitlement effects, production decreased by 2% from the first nine months of last year.

Liquids production of 2,486 kbd decreased by 87 kbd from 2004. Higher production from new fields in West Africa and the North Sea was more than offset by mature field decline, the impact of hurricanes Katrina and Rita, as well as entitlement effects and divestment impacts.

Natural gas production of 9,061 mcfd, decreased 614 mcfd from 2004. Higher volumes from projects in Qatar and the U.K. were more than offset by mature field decline, the impact of hurricanes Katrina and Rita, maintenance activity, and the impact of divestments.

Earnings from U.S. Upstream operations for the first nine months of 2005 were $4,413 million, an increase of $849 million. Earnings outside the U.S., excluding Gasunie, were $11,278 million, $3,054 million higher than last year.

Downstream earnings, excluding special items, were $5,492 million, an increase of $1,580 million from the first nine months of 2004 reflecting stronger worldwide refining margins partly offset by weak marketing margins. Petroleum product sales of 8,235 kbd compared with 8,131 kbd in the first nine months of 2004.

U.S. Downstream earnings, excluding Allapattah, were $2,953 million, up $1,093 million. Non-U.S. Downstream earnings, excluding Sinopec, were $2,539 million, $487 million higher than last year.

Chemical earnings of $2,568 million were up $388 million from the first nine months of 2004 due to improved margins partly offset by lower volumes. Prime product sales were 20,485 kt, down 354 kt from 2004.

Corporate and financing expenses of $211 million decreased by $209 million mainly due to higher interest income.

Gross share purchases in the first nine months of 2005 were $12,872 million which reduced shares outstanding by 2.8%.

Estimates of key financial and operating data follow. Financial data, except per share amounts, are expressed in millions of dollars.

ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. central time on October 27, 2005. To listen to the event live or in archive, go to our website at www.exxonmobil.com.

Statements in this release relating to future plans, projections, events, or conditions are forward-looking statements. Actual results, including production growth and capital spending, 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; severe weather events; reservoir performance; changes in OPEC quotas; timely completion of development projects; changes in technical or operating conditions; and other factors including those discussed under the heading "Factors Affecting Future Results" on our website and in Item 1 of ExxonMobil's 2004 Form 10-K. We assume no duty to update these statements as of any future date.

Consistent with previous practice this press release includes both net income and earnings excluding special items. Earnings that exclude special items are a non-GAAP financial measure 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. Calculation of this cash flow is shown in Attachment II. Further information on ExxonMobil's frequently used financial and operating measures is contained on pages 28 and 29 in the 2004 Form 10-K and is also available through the Investor Information section of our website at www.exxonmobil.com. Attachment I EXXON MOBIL CORPORATION THIRD QUARTER 2005 ---------------------------------- (millions of dollars, unless noted) Third Quarter Nine Months ---------------- ----------------- 2005 2004 2005 2004 -------- ------- -------- -------- Earnings/Earnings Per Share Total revenues and other income 100,717 76,375 271,336 214,670 Total costs and other deductions 84,665 66,841 229,622 186,694 Income before income taxes 16,052 9,534 41,714 27,976 Income taxes 6,132 3,854 16,294 11,066 Net income (U.S. GAAP) 9,920 5,680 25,420 16,910 Net income per common share (dollars) 1.60 0.88 4.04 2.60 Net income per common share - assuming dilution (dollars) 1.58 0.88 4.00 2.59 Other Financial Data Dividends on common stock Total 1,822 1,753 5,390 5,158 Per common share (dollars) 0.29 0.27 0.85 0.79 Millions of common shares outstanding At September 30 6,222 6,451 Average - assuming dilution 6,303 6,508 6,361 6,542 Shareholders' equity at September 30 107,890 95,442 Capital employed at September 30 117,976 107,638 Income taxes 6,132 3,854 16,294 11,066 Excise taxes 8,160 7,045 22,913 19,975 All other taxes 11,544 10,791 33,700 32,186 Total taxes 25,836 21,690 72,907 63,227 ExxonMobil's share of income taxes of equity companies 998 246 1,760 886 Attachment II EXXON MOBIL CORPORATION THIRD QUARTER 2005 ------------------------ (millions of dollars) Third Quarter Nine Months -------------- --------------- 2005 2004 2005 2004 ------- ------ ------- ------- Net Income (U.S. GAAP) Upstream United States 1,671 1,173 4,413 3,564 Non-U.S. 5,678 2,756 12,898 8,224 Downstream United States 1,109 11 2,753 1,310 Non-U.S. 1,019 840 2,849 2,052 Chemical United States 70 329 905 595 Non-U.S. 402 680 1,813 1,585 Corporate and financing (29) (109) (211) (420) Corporate total 9,920 5,680 25,420 16,910 Special Items Upstream Non-U.S. 1,620 0 1,620 0 Downstream United States 0 (550) (200) (550) Non-U.S. 0 0 310 0 Chemical Non-U.S. 0 0 150 0 Corporate total 1,620 (550) 1,880 (550) Earnings Excluding Special Items Upstream United States 1,671 1,173 4,413 3,564 Non-U.S. 4,058 2,756 11,278 8,224 Downstream United States 1,109 561 2,953 1,860 Non-U.S. 1,019 840 2,539 2,052 Chemical United States 70 329 905 595 Non-U.S. 402 680 1,663 1,585 Corporate and financing (29) (109) (211) (420) Corporate total 8,300 6,230 23,540 17,460 Cash flow from operations and asset sales (billions of dollars) Net cash provided by operating activities (U.S. GAAP) 15.7 9.4 37.7 28.2 Sales of subsidiaries, investments and property, plant and equipment 0.8 0.6 4.6 2.0 Cash flow from operations and asset sales 16.5 10.0 42.3 30.2 Attachment III EXXON MOBIL CORPORATION THIRD QUARTER 2005 ------------------------ Third Quarter Nine Months ---------------- ------------- 2005 2004 2005 2004 --------- ------ ------ ------ Net production of crude oil and natural gas liquids, thousands of barrels daily (kbd) United States 440 522 493 565 Canada 317 339 343 354 Europe 512 554 547 590 Asia Pacific 173 204 173 206 Africa 688 588 623 558 Other 317 298 307 300 Worldwide 2,447 2,505 2,486 2,573 Natural gas production available for sale, millions of cubic feet daily (mcfd) United States 1,614 1,918 1,781 1,993 Canada 926 954 921 979 Europe 2,934 3,302 4,152 4,360 Asia Pacific 1,297 1,516 1,314 1,565 Other 953 798 893 778 Worldwide 7,724 8,488 9,061 9,675 Oil-equivalent production (koebd) (a) 3,734 3,920 3,996 4,185 (a) Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels Attachment IV EXXON MOBIL CORPORATION THIRD QUARTER 2005 ------------------------- Third Quarter Nine Months -------------- --------------- 2005 2004 2005 2004 ------- ------ ------- ------- Petroleum product sales (kbd) United States 2,903 2,869 2,920 2,831 Canada 613 619 613 606 Europe 2,121 2,156 2,102 2,130 Asia Pacific 1,744 1,695 1,770 1,669 Other 836 903 830 895 Worldwide 8,217 8,242 8,235 8,131 Gasolines, naphthas 3,335 3,363 3,275 3,274 Heating oils, kerosene, diesel 2,460 2,446 2,536 2,485 Aviation fuels 739 731 717 690 Heavy fuels 694 655 695 650 Specialty products 989 1,047 1,012 1,032 Total 8,217 8,242 8,235 8,131 Refinery throughput (kbd) United States 1,744 1,885 1,836 1,840 Canada 439 481 462 467 Europe 1,735 1,663 1,657 1,650 Asia Pacific 1,530 1,473 1,492 1,400 Other 316 307 300 309 Worldwide 5,764 5,809 5,747 5,666 Chemical prime product sales, thousands of metric tons (kt) United States 2,639 2,922 8,141 8,650 Non-U.S. 4,316 4,195 12,344 12,189 Worldwide 6,955 7,117 20,485 20,839 Attachment V EXXON MOBIL CORPORATION THIRD QUARTER 2005 ------------------------ (millions of dollars) Third Quarter Nine Months -------------- --------------- 2005 2004 2005 2004 ------- ------ ------- ------- Capital and Exploration Expenditures Upstream United States 628 483 1,600 1,402 Non-U.S. 2,958 2,394 8,476 7,019 Total 3,586 2,877 10,076 8,421 Downstream United States 191 202 540 600 Non-U.S. 455 398 1,207 1,134 Total 646 600 1,747 1,734 Chemical United States 54 68 182 183 Non-U.S. 108 86 303 251 Total 162 154 485 434 Other 20 3 60 63 Worldwide 4,414 3,634 12,368 10,652 Exploration expenses charged to income included above Consolidated affiliates United States 29 66 103 151 Non-U.S. 215 328 517 623 Equity companies - ExxonMobil share United States 0 0 0 0 Non-U.S. 5 7 17 11 Worldwide 249 401 637 785 Attachment VI EXXON MOBIL CORPORATION NET INCOME ----------------------- $ Millions $ Per Common Share ------------------ -------------------- 2001 ------------------- First Quarter 5,000 0.72 Second Quarter 4,460 0.66 Third Quarter 3,180 0.46 Fourth Quarter 2,680 0.39 Year 15,320 2.23 2002 ------------------- First Quarter 2,090 0.30 Second Quarter 2,640 0.40 Third Quarter 2,640 0.39 Fourth Quarter 4,090 0.60 Year 11,460 1.69 2003 ------------------- First Quarter 7,040 1.05 Second Quarter 4,170 0.63 Third Quarter 3,650 0.55 Fourth Quarter 6,650 1.01 Year 21,510 3.24 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

Source: Business Wire

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