Exxon Mobil Corporation (ticker: XOM, exchange: New York Stock Exchange (.N))
News Release -
1-May-2003
Exxon Mobil Corporation Announces Estimated First Quarter 2003 Results IRVING, Texas--(BUSINESS WIRE)--May 1, 2003--Exxon Mobil
Corporation (NYSE:XOM):
First Quarter
2003 2002
Net Income
$ Millions 7,040 2,090
$ Per Common Share
Assuming Dilution 1.05 0.30
Earnings Excluding Merger Effects,
Discontinued Operations, Accounting
Change and Other Special Items
$ Millions 4,790 2,123
$ Per Common Share
Assuming Dilution 0.71 0.30
Revenue - $ Millions 63,780 43,393
Capital & Exploration
Expenditures - $ Millions 3,496 2,974
Exxon Mobil Corporation today reported first quarter results. Net
income was $7,040 million ($1.05 per share), an increase of $4,950
million from the first quarter of 2002. Excluding a required
accounting change, a special item, merger effects and discontinued
operations, first quarter 2003 earnings were $4,790 million ($0.71 per
share), an increase of $2,667 million from the first quarter of 2002.
Revenue for the first quarter of 2003 totaled $63,780 million
compared with $43,393 million in 2002. Capital and exploration
expenditures of $3,496 million in the first quarter of 2003 were up
$522 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"First quarter earnings were strong and improved in all parts of
the business. Capex continued to grow consistent with our long-term
investment plans. Asset management steps continued to produce positive
results.
"Compared with last year's first quarter, ExxonMobil's first
quarter 2003 net income of $7,040 million was up $4,950 million.
Earnings excluding a required accounting change, a special item,
merger effects and discontinued operations were $4,790 million, up
$2,667 million.
"First quarter net income included a $550 million positive impact
from the required adoption of FAS 143 relating to accounting for asset
retirement obligations. Net income also included a one-time gain of
$1,700 million from the transfer of shares in Ruhrgas AG, a German gas
transmission company. The Ruhrgas shares were acquired by E.ON AG in
March 2003.
"Upstream earnings, excluding the Ruhrgas gain, were a record
$3,993 million, an increase of $1,904 million from first quarter 2002
results reflecting higher realizations on sales of crude oil and
natural gas. Average crude prices for the quarter were at historical
highs reflecting the temporary effects of the national strike in
Venezuela and civil unrest in Nigeria as well as market speculation on
the impacts from war in Iraq. Natural gas prices were higher primarily
due to cold weather in the United States. Both crude and natural gas
prices fell during March and are significantly lower thus far in the
second quarter.
"On an oil-equivalent basis, production increased 2% excluding the
effects of the national strike in Venezuela, lower entitlements caused
by higher prices and changes in OPEC quotas. Actual oil- equivalent
production, including these impacts, was flat. Plans for long-term
capacity increases remain on track as reflected by higher capital
spending.
"Downstream earnings were $723 million, an increase of $751
million from last year's very weak first quarter, reflecting improved
industry-wide conditions. Refining and marketing margins were higher
in most areas worldwide.
"Chemicals earnings of $287 million were up $155 million from last
year's first quarter. Earnings benefited from record volumes, which
were up 4% from last year. Favorable foreign exchange effects and
improvements in non-U.S. margins were partly offset by margin declines
in the U.S.
"Income and other taxes for the first quarter of $18,684 million
were up $4,121 million compared to last year.
"In the first quarter, ExxonMobil continued its active investment
program, spending $3,496 million on capital and exploration projects,
compared with $2,974 million last year, reflecting continued growth in
upstream spending.
"During the quarter, the corporation acquired 35 million shares at
a gross cost of $1,191 million to offset the dilution associated with
benefit plans and to reduce common stock outstanding."
Additional comments on earnings for the major operating segments
follow:
First Quarter 2003 vs. First Quarter 2002
Upstream earnings were a record $3,993 million, up $1,904 million
from the first quarter 2002 reflecting higher crude oil and natural
gas realizations.
Oil-equivalent production was up 2% versus the first quarter of
last year, excluding the impact of the national strike in Venezuela,
lower entitlements caused by higher prices and changes in OPEC quotas.
Total actual oil-equivalent production was flat as contributions from
new projects and work programs were offset by natural field declines,
reduced production in Venezuela and entitlement/quota impacts.
Liquids production of 2,506 kbd (thousands of barrels per day)
decreased from 2,541 kbd in the first quarter of 2002. Higher
production in Nigeria and Canada, and reduced OPEC quota restrictions
in Abu Dhabi, were more than offset by supply disruptions in
Venezuela, lower entitlements and natural field declines in mature
areas. Excluding the strike-related effects in Venezuela and
entitlement/quota impacts, liquids production was flat in the first
quarter versus last year.
First quarter natural gas production increased to 12,048 mcfd
(millions of cubic feet per day), compared with 11,740 mcfd last year.
Higher weather-related demand in Europe more than offset natural field
decline in mature areas.
Earnings from U.S. upstream operations were $1,259 million, up
$811 million. Non-U.S. upstream earnings of $2,734 million were $1,093
million higher than last year's first quarter excluding the $1,700
million Ruhrgas gain.
Downstream earnings of $723 million, representing about 2 cents
per gallon, increased $751 million from the first quarter of last year
reflecting the recovery in worldwide refining and marketing margins
from very weak conditions. Petroleum product sales were 7,861 kbd, 186
kbd higher than last year's first quarter.
U.S. downstream earnings were $174 million, up $160 million due to
higher refining and marketing margins. Non-U.S. downstream earnings of
$549 million were $591 million higher than last year's first quarter.
In addition to margin effects, non-U.S. downstream results benefited
from the absence of negative foreign exchange effects in Argentina in
the first quarter of 2002.
Chemicals earnings of $287 million were up $155 million from the
same quarter a year ago due to higher volumes, improved non-U.S.
margins and favorable foreign exchange effects. Prime product sales of
7,000 kt (thousands of metric tons) were up 280 kt, reflecting higher
demand in key commodity businesses across most regions.
Corporate and financing expenses of $213 million increased $143
million mainly due to higher U.S. pension costs.
During the first quarter of 2003, Exxon Mobil Corporation
purchased 35 million shares of its common stock for the treasury at a
gross cost of $1,191 million. These purchases were to offset shares
issued in conjunction with company benefit plans and programs and to
reduce the number of shares outstanding. Shares outstanding were
reduced from 6,700 million at the end of the fourth quarter of 2002 to
6,679 million at the end of the first quarter. Purchases may be made
in both the open market and through negotiated transactions, and may
be discontinued at any time.
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 May 1, 2003. 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 market conditions affecting the oil and
gas industry; political events or disturbances; changes in OPEC
quotas; 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 2002 Form
10-K. We assume no duty to update these statements as of any future
date.
Consistent with previous practice, the first quarter press release
includes both net income and earnings excluding a required accounting
change, a special item, merger expenses and discontinued operations.
Earnings that exclude the aforementioned segments 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. Further information on ExxonMobil's
frequently used financial and operating measures is contained on pages
26 and 27 in the 2002 Form 10-K and is also available through our
website at www.exxonmobil.com. Additional information on the required
accounting change is contained on pages 34 and 35 in the 2002 Form
10-K.
ATTACHMENT I
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
(millions of dollars, except per share amounts)
First Quarter
2003 2002
EARNINGS / EARNINGS PER SHARE
Total revenue 63,780 43,393
Total costs and other deductions 53,902 40,065
Income before income taxes $9,878 $3,328
Income taxes 3,388 1,265
Income from continuing operations $6,490 $2,063
Discontinued operations 0 27
Accounting change 550 0
Net income (U.S. GAAP) $7,040 $2,090
Net income per common share (dollars)
Income from continuing operations 0.97 0.30
Discontinued operations 0.00 0.00
Accounting change 0.08 0.00
Net income $1.05 $0.30
Net income per common share
- assuming dilution (dollars)
Income from continuing operations 0.97 0.30
Discontinued operations 0.00 0.00
Accounting change 0.08 0.00
Net income $1.05 $0.30
Note -- Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Earnings of
divested coal and copper mining businesses are reported as
discontinued operations.
ATTACHMENT I (continued)
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
(millions of dollars, except per share amounts)
First Quarter
2003 2002
OTHER FINANCIAL DATA
Dividends on common stock
Total $1,541 $1,563
Per common share $0.23 $0.23
Millions of common shares outstanding
At March 31 6,679 6,782
Average 6,683 6,793
Average-assuming dilution 6,714 6,858
Shareholders' equity at March 31 $79,585 $72,367
Capital employed at March 31 $93,676 $86,896
Income and other taxes
Income taxes 3,388 1,265
Excise taxes 5,831 4,791
All other taxes 9,465 8,507
Total taxes $18,684 $14,563
ExxonMobil's share of income taxes
of equity companies: $329 $224
Note -- Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Earnings of divested
coal and copper mining businesses are reported as discontinued
operations.
ATTACHMENT II
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
FUNCTIONAL EARNINGS
(millions of dollars)
First Quarter
Net Income (U.S. GAAP) 2003 2002
Upstream
United States 1,259 448
Non-U.S. 4,434 1,641
Downstream
United States 174 14
Non-U.S. 549 (42)
Chemicals
United States 16 70
Non-U.S. 271 62
Corporate and financing (213) (70)
Merger expenses 0 (60)
Income from continuing operations 6,490 2,063
Discontinued operations 0 27
Accounting change 550 0
Net income (U.S. GAAP) $7,040 $2,090
Merger Effects, Discontinued Operations,
Accounting Change and Other Special Items
Upstream
Non-U.S. 1,700 0
Merger expenses 0 (60)
Discontinued operations 0 27
Accounting change 550 0
Corporate total $2,250 ($33)
Earnings Excluding Merger Effects, Discontinued
Operations, Accounting Change and Other
Special Items
Upstream
United States 1,259 448
Non-U.S. 2,734 1,641
Downstream
United States 174 14
Non-U.S. 549 (42)
Chemicals
United States 16 70
Non-U.S. 271 62
Corporate and financing (213) (70)
Corporate total $4,790 $2,123
Note -- Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Earnings of
divested coal and copper mining businesses are reported as
discontinued operations.
ATTACHMENT III
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
First Quarter
2003 2002
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 635 718
Canada 346 331
Europe 621 610
Asia-Pacific 231 268
Africa 414 344
Other Non-U.S. 259 270
Worldwide 2,506 2,541
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 2,369 2,492
Canada 931 1,064
Europe 6,321 5,694
Asia-Pacific 1,792 1,922
Other Non-U.S. 635 568
Worldwide 12,048 11,740
Oil-equivalent production (koebd)(a) 4,514 4,498
(a) Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
First Quarter
2003 2002
Petroleum product sales (kbd)
United States 2,573 2,712
Canada 613 573
Europe 1,988 1,990
Asia-Pacific 1,805 1,525
Other Non-U.S. 882 875
Worldwide 7,861 7,675
Gasolines, naphthas 3,035 3,083
Heating oils, kerosene, diesel 2,517 2,383
Aviation fuels 660 663
Heavy fuels 642 600
Specialty products 1,007 946
Total 7,861 7,675
Refinery throughput (kbd)
United States 1,683 1,847
Canada 447 441
Europe 1,464 1,526
Asia-Pacific 1,506 1,370
Other Non-U.S. 290 232
Worldwide 5,390 5,416
Chemical product revenue
($ millions)
United States $2,599 $1,838
Non-U.S. $3,831 $2,459
Worldwide $6,430 $4,297
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,861 2,744
Non-U.S. 4,139 3,976
Worldwide 7,000 6,720
ATTACHMENT IV
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
(millions of dollars)
First Quarter
2003 2002
Capital and Exploration Expenditures
Upstream
United States 489 586
Non-U.S. 2,295 1,679
Total 2,784 2,265
Downstream
United States 308 149
Non-U.S. 273 243
Total 581 392
Chemicals, administrative and
discontinued operations
United States 63 193
Non-U.S. 68 124
Total 131 317
Worldwide $3,496 $2,974
Exploration expenses charged to income
included above
Consolidated affiliates
United States 35 66
Non-U.S. 107 147
Equity companies - ExxonMobil share
Non-U.S. 12 2
Worldwide $154 $215
Note -- Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Capital and
exploration expenditures of divested coal and copper mining businesses
are reported as discontinued operations.
ATTACHMENT V
EXXON MOBIL CORPORATION
NET INCOME
$ Millions Per Common Share
1999 - First Quarter 1,484 0.21
- Second Quarter 1,954 0.29
- Third Quarter 2,188 0.31
- Fourth Quarter 2,284 0.33
Year $7,910 $1.14
2000 - First Quarter 3,480 0.50
- Second Quarter 4,530 0.66
- Third Quarter 4,490 0.63
- Fourth Quarter 5,220 0.76
Year $17,720 $2.55
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
CONTACT: ExxonMobil
Media Relations, 972/444-1109, 1108, 1107 and 1141
SOURCE: Exxon Mobil Corporation
|
Exxon Mobil Corporation
