Exxon Mobil Corporation (ticker: XOM, exchange: New York Stock Exchange (.N))
News Release -
29-Jan-2004
Exxon Mobil Corporation Announces Estimated Fourth Quarter and 2003 ResultsIRVING, Texas, Jan 29, 2004 (BUSINESS WIRE) -- Exxon Mobil
Corporation (NYSE:XOM):
Fourth Quarter Twelve Months
2003 2002 2003 2002
Net Income
$ Millions 6,650 4,090 21,510 11,460
$ Per Common Share
Assuming Dilution 1.01 0.60 3.23 1.68
Earnings Excluding Merger Effects,
Discontinued Operations, Accounting
Change and Other Special Items
$ Millions 4,420 3,790 17,030 11,501
$ Per Common Share
Assuming Dilution 0.68 0.56 2.56 1.69
Revenue - $ Millions 65,952 56,211 246,738 204,506
Capital & Exploration
Expenditures - $ Millions 4,360 4,025 15,525 13,955
Exxon Mobil Corporation (NYSE:XOM) today reported fourth quarter
results. Net income was $6,650 million ($1.01 per share), an increase
of $2,560 million from the fourth quarter of 2002, and included a
special item of $2,230 million relating to the settlement of a
long-running U.S. tax dispute. Excluding merger effects, discontinued
operations and special items, earnings increased $630 million from the
fourth quarter of 2002.
Revenue for the fourth quarter of 2003 totaled $65,952 million
compared with $56,211 million in 2002. Capital and exploration
expenditures of $4,360 million in the fourth quarter of 2003 were up
$335 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"Strong fourth quarter earnings continued to reflect the improved
results we have seen throughout 2003.
"ExxonMobil's full year 2003 net income was a record $21,510
million. Full year 2003 earnings excluding special items and a
required accounting change in the first quarter were also a record at
$17,030 million, representing much stronger results in all areas of
the business.
"Fourth quarter upstream earnings were $3,269 million, an increase
of $267 million from 2002 results. The increase in earnings reflected
higher average crude and natural gas prices.
"Liquids volumes increased 4% in the quarter due to production
from new projects in West Africa and Norway. On an oil-equivalent
basis, production was down 1% with contributions from new projects
more than offset by natural field decline of both oil and gas.
"Plans for long-term capacity increases remain on track as
reflected by strong liquids volumes growth in the fourth quarter and
higher capital spending, which for the year is up over 15%.
"Downstream earnings of $736 million, were down $85 million from
last year's fourth quarter reflecting weaker marketing results.
"Chemicals earnings of $476 million increased $400 million from
last year's fourth quarter due to improved margins and favorable
foreign exchange effects.
"ExxonMobil continued its active investment program in the fourth
quarter, spending $4,360 million on capital and exploration projects,
compared with $4,025 million last year, reflecting continued growth in
upstream spending.
"During the quarter, the corporation acquired 50 million shares at
a gross cost of $1,832 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:
Fourth Quarter 2003 vs. Fourth Quarter 2002
Upstream earnings were $3,269 million, up $267 million from the
fourth quarter 2002, reflecting higher crude oil and natural gas
realizations.
Liquids production of 2,595 kbd (thousands of barrels per day)
increased 4% from 2,497 kbd in the fourth quarter of 2002. Higher
production from new projects in West Africa and Norway, and reduced
OPEC quota restrictions, were partly offset by natural field decline
in mature areas.
Fourth quarter natural gas production was 10,858 mcfd (millions of
cubic feet per day) compared with 11,667 mcfd last year. Contributions
from new projects and work programs were more than offset by lower
demand and operational outages at partner operated facilities in
Europe, natural field decline in mature areas and reduced entitlement
effects.
Earnings from U.S. upstream operations were $856 million, up $99
million. Non-U.S. upstream earnings of $2,413 million were $168
million higher than last year.
Downstream earnings of $736 million were down $85 million from the
fourth quarter of last year reflecting weaker marketing results.
Petroleum product sales were 8,237 kbd, 220 kbd higher than last
year's fourth quarter.
U.S. downstream earnings were $384 million, down $19 million.
Non-U.S. downstream earnings of $352 million were $66 million lower
than last year's fourth quarter.
Chemicals earnings of $476 million were up $400 million from last
year due to stronger margins, reduced operating expenses, favorable
foreign exchange effects and positive inventory impacts. Prime product
sales of 6,692 kt (thousands of metric tons) were up 78 kt.
Corporate and financing expenses of $61 million, excluding the
special tax settlement item, decreased by $48 million. During the
period, the company continued to benefit from favorable tax related
items.
During the fourth quarter of 2003, Exxon Mobil Corporation
purchased 50 million shares of its common stock for the treasury at a
gross cost of $1,832 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 6,610 million at the end of the third quarter of 2003 to
6,568 million at the end of the fourth quarter. Purchases may be made
in both the open market and through negotiated transactions. Purchases
may be increased, decreased or discontinued at any time without prior
notice.
Full Year 2003 vs. Full Year 2002
Net income of $21,510 million ($3.23 per share) was a record and
increased $10,050 million from 2002. Excluding a required accounting
change, special items, merger effects and discontinued operations,
earnings of $17,030 million ($2.56 per share) were also a record and
were $5,529 million higher than 2002. Net income for 2003 included a
$550 million positive impact for the required adoption of FAS 143
relating to accounting for asset retirement obligations. Net income
also included one-time special items of $2,230 million relating to the
positive settlement of a long-running U.S. tax dispute and $1,700
million from a gain on the transfer of shares in Ruhrgas AG, a German
gas transmission company. Net income for 2002 included $275 million of
after-tax merger expenses, $449 million in earnings from discontinued
operations and a special charge of $215 million related to the
deferred income tax effect of the 10% supplementary U.K. tax on North
Sea operations.
Upstream earnings, excluding special items, of $12,802 million
increased $2,989 million due to higher liquids and natural gas
realizations. Excluding the effects of operational outages in the
North Sea and West Africa, the national strike in Venezuela and price
related entitlement effects, total oil and natural gas producible
volumes were up 1%. Actual oil-equivalent production, including these
impacts, was down 1%.
Liquids production of 2,516 kbd increased 20 kbd from 2002. Higher
production in West Africa, Norway and Canada and lower OPEC-driven
quota constraints, were partly offset by natural field decline and the
impact of operational problems in the North Sea and West Africa which
mainly occurred in the second quarter of 2003.
Natural gas production of 10,119 mcfd decreased 333 mcfd from
2002. Higher demand in the first half of the year in Europe and
contributions from new projects and work programs were more than
offset by natural field decline, reduced entitlements and operational
outages in the North Sea.
Earnings from U.S. upstream operations for 2003 were $3,905
million, an increase of $1,381 million. Earnings outside the U.S.,
excluding the effects of special items, were $8,897 million, $1,608
million higher than last year.
Downstream earnings of $3,516 million increased by $2,216 million
from 2002 reflecting higher worldwide refining and marketing margins.
Petroleum product sales of 7,957 kbd compared with 7,757 kbd in 2002.
U.S. downstream earnings were $1,348 million, up $655 million.
Non-U.S. downstream earnings of $2,168 million were $1,561 million
higher than last year.
Chemicals earnings of $1,432 million were up $602 million from
2002 due to improved margins and favorable foreign exchange effects.
Prime product sales of 26,567 kt were down 39 kt.
Corporate and financing expenses, excluding special items, of $720
million increased by $278 million mainly due to higher U.S. pension
costs.
During 2003, Exxon Mobil Corporation purchased 163 million shares
of its common stock for the treasury at a gross cost of $5,881
million. These purchases were to offset shares issued in conjunction
with company benefit plans and programs and to reduce the number of
shares outstanding.
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 January 29, 2004. 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 and capacity 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 or rates of
natural field decline; 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 fourth quarter press
release includes both net income and earnings excluding a required
accounting change, special items, merger expenses and discontinued
operations. Earnings that exclude the aforementioned 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. 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
FOURTH QUARTER 2003
(millions of dollars, except per share amounts)
Fourth Quarter Twelve Months
2003 2002 2003 2002
EARNINGS/EARNINGS PER SHARE
Total revenue 65,952 56,211 246,738 204,506
Total costs and other deductions 56,574 50,794 214,772 186,996
Income before income taxes $9,378 $5,417 $31,966 $17,510
Income taxes 2,728 1,727 11,006 6,499
Income from continuing operations $6,650 $3,690 $20,960 $11,011
Discontinued operations 0 400 0 449
Accounting change 0 0 550 0
Net income (U.S. GAAP) $6,650 $4,090 $21,510 $11,460
Net income per common share
(dollars)
Income from continuing operations 1.01 0.54 3.16 1.62
Discontinued operations 0.00 0.06 0.00 0.07
Accounting change 0.00 0.00 0.08 0.00
Net income $1.01 $0.60 $3.24 $1.69
Net income per common share
- assuming dilution (dollars)
Income from continuing operations 1.01 0.54 3.15 1.61
Discontinued operations 0.00 0.06 0.00 0.07
Accounting change 0.00 0.00 0.08 0.00
Net income $1.01 $0.60 $3.23 $1.68
ATTACHMENT I (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
(millions of dollars, except per share amounts)
Fourth Quarter Twelve Months
2003 2002 2003 2002
OTHER FINANCIAL DATA
Dividends on common stock
Total $1,649 $1,545 $6,515 $6,217
Per common share $0.25 $0.23 $0.98 $0.92
Millions of common shares
outstanding
At December 31 6,568 6,700
Average 6,580 6,712 6,634 6,753
Average-assuming dilution 6,612 6,755 6,662 6,803
Shareholders' equity at December
31 $89,972 $74,597
Capital employed at December 31 $102,105 $88,698
Income and other taxes
Income taxes 2,728 1,727 11,006 6,499
Excise taxes 6,228 5,816 23,855 22,040
All other taxes 10,726 9,380 40,107 35,746
Total taxes $19,682 $16,923 $74,968 $64,285
ExxonMobil's share of income
taxes of equity companies: $321 $245 $983 $778
ATTACHMENT II
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
FUNCTIONAL EARNINGS
(millions of dollars)
Fourth Quarter Twelve Months
Net Income (U.S. GAAP) 2003 2002 2003 2002
Upstream
United States 856 757 3,905 2,524
Non-U.S. 2,413 2,245 10,597 7,074
Downstream
United States 384 403 1,348 693
Non-U.S. 352 418 2,168 607
Chemicals
United States 212 71 381 384
Non-U.S. 264 5 1,051 446
Corporate and financing 2,169 (109) 1,510 (442)
Merger expenses 0 (100) 0 (275)
Income from continuing operations 6,650 3,690 20,960 11,011
Discontinued operations 0 400 0 449
Accounting change 0 0 550 0
Net income (U.S. GAAP) $6,650 $4,090 $21,510 $11,460
Merger Effects, Discontinued
Operations, Accounting Change
and Other Special Items
Upstream
Non-U.S. 0 0 1,700 (215)
Corporate and financing 2,230 0 2,230 0
Merger expenses 0 (100) 0 (275)
Discontinued operations 0 400 0 449
Accounting change 0 0 550 0
Corporate total $2,230 $300 $4,480 ($41)
Earnings Excluding Merger
Effects, Discontinued
Operations, Accounting Change
and Other Special Items
Upstream
United States 856 757 3,905 2,524
Non-U.S. 2,413 2,245 8,897 7,289
Downstream
United States 384 403 1,348 693
Non-U.S. 352 418 2,168 607
Chemicals
United States 212 71 381 384
Non-U.S. 264 5 1,051 446
Corporate and financing (61) (109) (720) (442)
Corporate total $4,420 $3,790 $17,030 $11,501
ATTACHMENT III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
Fourth Quarter Twelve Months
2003 2002 2003 2002
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 607 650 610 681
Canada 364 375 363 349
Europe 589 603 579 592
Asia-Pacific 236 246 237 260
Africa 500 352 442 349
Other Non-U.S. 299 271 285 265
Worldwide 2,595 2,497 2,516 2,496
Natural gas production available
for sale, millions of cubic feet
daily (mcfd)
United States 2,038 2,264 2,246 2,375
Canada 994 987 943 1,024
Europe 5,467 5,782 4,498 4,463
Asia-Pacific 1,711 2,015 1,803 2,019
Other Non-U.S. 648 619 629 571
Worldwide 10,858 11,667 10,119 10,452
Oil-equivalent production
(koebd)(a) 4,405 4,442 4,203 4,238
(a) Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
Fourth Quarter Twelve Months
2003 2002 2003 2002
Petroleum product sales (kbd)
United States 2,912 2,810 2,729 2,731
Canada 622 622 602 593
Europe 2,102 2,097 2,061 2,042
Asia-Pacific 1,693 1,581 1,675 1,503
Other Non-U.S. 908 907 890 888
Worldwide 8,237 8,017 7,957 7,757
Gasolines, naphthas 3,342 3,224 3,238 3,176
Heating oils, kerosene, diesel 2,568 2,406 2,432 2,292
Aviation fuels 673 698 662 691
Heavy fuels 662 680 638 604
Specialty products 992 1,009 987 994
Total 8,237 8,017 7,957 7,757
Refinery throughput (kbd)
United States 1,874 1,811 1,806 1,834
Canada 445 446 450 447
Europe 1,626 1,548 1,566 1,539
Asia-Pacific 1,345 1,449 1,390 1,379
Other Non-U.S. 313 282 298 244
Worldwide 5,603 5,536 5,510 5,443
Chemical product revenue
($ millions)
United States $2,448 $2,247 $10,163 $8,713
Non-U.S. $4,036 $3,101 $15,090 $11,597
Worldwide $6,484 $5,348 $25,253 $20,310
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,717 2,783 10,740 11,386
Non-U.S. 3,975 3,831 15,827 15,220
Worldwide 6,692 6,614 26,567 26,606
ATTACHMENT IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
(millions of dollars)
Fourth Quarter Twelve Months
2003 2002 2003 2002
Capital and Exploration Expenditures
Upstream
United States 571 584 2,125 2,357
Non-U.S. 2,733 2,297 9,863 8,037
Total 3,304 2,881 11,988 10,394
Downstream
United States 291 324 1,244 980
Non-U.S. 528 515 1,537 1,470
Total 819 839 2,781 2,450
Chemicals, administrative and
discontinued operations
United States 133 151 397 620
Non-U.S. 104 154 359 491
Total 237 305 756 1,111
Worldwide $4,360 $4,025 $15,525 $13,955
Exploration expenses charged to
income included above
Consolidated affiliates
United States 144 57 256 220
Non-U.S. 306 249 735 679
Equity companies - ExxonMobil
share
United States 0 0 1 0
Non-U.S. 6 33 25 39
Worldwide $456 $339 $1,017 $938
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
- Second Quarter 4,170 0.63
- Third Quarter 3,650 0.55
- Fourth Quarter 6,650 1.01
Year $21,510 $3.24
SOURCE: Exxon Mobil Corporation
ExxonMobil
Media Relations, 972/444-1109, 1108, 1107 and 1141
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