Exxon Mobil Corporation (ticker: XOM, exchange: New York Stock Exchange (.N))
News Release -
31-Jan-2005
Exxon Mobil Corporation Announces Estimated Fourth Quarter and 2004 Results IRVING, Texas--(BUSINESS WIRE)--Jan. 31, 2005--Exxon Mobil
Corporation (NYSE:XOM):
Fourth Quarter Twelve Months
2004 2003 2004 2003
Net Income
$ Millions 8,420 6,650 25,330 21,510
$ Per Common Share
Assuming Dilution 1.30 1.01 3.89 3.23
Earnings Excluding Accounting
Change and Other Special Items
$ Millions 8,420 4,420 25,880 17,030
$ Per Common Share
Assuming Dilution 1.30 0.68 3.97 2.56
Total Revenues and
Other Income - $ Millions 83,357 65,952 298,027 246,738
Capital and Exploration
Expenditures - $ Millions 4,233 4,360 14,885 15,525
Exxon Mobil Corporation (NYSE:XOM) today reported fourth quarter
results. Net income of $8,420 million ($1.30 per share) was the
highest quarter ever for the Corporation. Net income increased $1,770
million from the fourth quarter of 2003, which included a special item
of $2,230 million relating to the settlement of a long-running U.S.
tax dispute. Excluding this special item, fourth quarter earnings
increased $4,000 million.
Revenues and other income for the fourth quarter of 2004 totaled
$83,357 million compared with $65,952 million in 2003. Capital and
exploration expenditures of $4,233 million in the fourth quarter of
2004 were down $127 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"Fourth quarter earnings were $8,420 million with all business
segments reporting record earnings.
"Upstream earnings were $4,887 million, an increase of $1,618
million from fourth quarter 2003 results reflecting higher average
crude and natural gas prices.
"Downstream earnings were $2,344 million, an increase of $1,608
million from last year's fourth quarter due to strong refining margins
and improved marketing results.
"Chemical earnings were $1,248 million, an increase of $772
million from fourth quarter 2003 results reflecting strong worldwide
demand.
"In the fourth quarter, ExxonMobil continued its active investment
program, spending $4,233 million on capital and exploration projects,
compared with $4,360 million last year, reflecting continued strong
levels of upstream spending.
"ExxonMobil's full year 2004 net income was a record $25,330
million, up $3,820 million from 2003. Earnings excluding an accounting
change in 2003 and special items in 2003 and 2004 were $25,880
million, up $8,850 million from 2003 reflecting record performance in
all segments of the business.
"Strong operational performance in all areas of our business
helped ExxonMobil capture the benefits of favorable market conditions
in 2004.
"During the fourth quarter, the corporation acquired 61 million
shares at a gross cost of $3,041 million to offset the dilution
associated with benefit plans and to reduce common stock outstanding."
Additional comments on earnings by operating segments follow:
Fourth Quarter 2004 vs. Fourth Quarter 2003
Upstream earnings were $4,887 million, up $1,618 million from the
fourth quarter of 2003 reflecting higher crude oil and natural gas
realizations.
Liquids production of 2,565 kbd (thousands of barrels per day) was
down 1% versus the fourth quarter of 2003. Higher production from new
fields in West Africa and Norway was more than offset by natural field
decline in mature areas, entitlement effects and divestment impacts.
Excluding divestment and entitlement effects, production increased 3%.
Fourth quarter natural gas production decreased to 10,430 mcfd
(millions of cubic feet per day) from 10,858 mcfd last year. The
impact of projects and work programs and an additional LNG train in
Qatar were more than offset by natural field decline in mature areas,
divestment impacts and entitlement effects.
On an oil-equivalent basis, production decreased by 2% from the
fourth quarter of 2003. Excluding divestment and entitlement effects,
production increased by 1%.
Earnings from U.S. Upstream operations were $1,384 million, up
$528 million. Non-U.S. Upstream earnings of $3,503 million were $1,090
million higher than last year's fourth quarter.
Downstream earnings were $2,344 million, an increase of $1,608
million from the fourth quarter 2003. The improved results reflect
stronger refining margins, increased refinery throughput from more
efficient operations and higher marketing margins. Petroleum product
sales were 8,446 kbd, 209 kbd higher than last year's fourth quarter.
U.S. Downstream earnings were $876 million, up $492 million. Non-
U.S. Downstream earnings of $1,468 million were $1,116 million higher
than last year's fourth quarter.
Chemical earnings were $1,248 million, up $772 million from the
same quarter a year ago due to improved margins and increased sales
volumes. Prime product sales of 6,949 kt (thousands of metric tons)
were up 257 kt, reflecting improved demand.
Corporate and financing expenses of $59 million were $2 million
lower than the fourth quarter of 2003 after excluding the earnings
from a tax settlement reported as a special item in 2003.
During the fourth quarter of 2004, Exxon Mobil Corporation
purchased 61 million shares of its common stock for the treasury at a
gross cost of $3,041 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 6,451 million at the end of the third quarter of 2004 to
6,401 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 2004 vs. Full year 2003
Net income of $25,330 million ($3.89 per share) was a record and
increased $3,820 million from 2003. Net income for 2004 included a
special charge of $550 million for the Allapattah lawsuit provision.
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 for 2003 also included one-time
special items of $2,230 million relating to the positive settlement of
a long-running U.S. tax dispute and a gain of $1,700 million from the
transfer of shares in Ruhrgas AG. Excluding the accounting change and
special items, 2004 earnings increased by $8,850 million.
Upstream earnings of $16,675 million increased $3,873 million,
excluding special items, due to higher liquids and natural gas
realizations.
Liquids production of 2,571 kbd increased by 2% versus 2003.
Higher production in West Africa and Norway was partly offset by
natural field decline in mature areas, entitlement effects and
divestment impacts.
Natural gas production of 9,864 mcfd decreased 255 mcfd from 2003.
Natural field decline in mature areas, divestment impacts and
entitlement effects were partly offset by the start-up of an
additional LNG train in Qatar and by projects and work programs.
On an oil-equivalent basis, production was flat versus 2003.
Excluding divestment and entitlement effects, production increased by
3%.
Earnings from U.S. Upstream operations for 2004 were $4,948
million, an increase of $1,043 million. Earnings outside the U.S. were
$11,727 million, $2,830 million higher than last year.
Downstream earnings, excluding the $550 million special charge in
2004, were $6,256 million, an increase of $2,740 million from 2003
reflecting stronger worldwide refining margins and higher refinery
throughput, partly offset by weaker marketing margins. Petroleum
product sales of 8,210 kbd compared with 7,957 kbd in 2003.
U.S. Downstream earnings, excluding the special charge, were
$2,736 million, up $1,388 million. Non-U.S. Downstream earnings of
$3,520 million were $1,352 million higher than last year.
Chemical earnings of $3,428 million were up $1,996 million from
2003 due to improved margins, higher volumes and favorable foreign
exchange effects. Prime product sales were a record 27,788 kt, up 5%,
reflecting higher demand.
Corporate and financing expenses of $479 million decreased by $241
million mainly due to lower U.S. pension costs, excluding the earnings
from a tax settlement reported as a special item in 2003.
During 2004, Exxon Mobil Corporation purchased 218 million shares
of its common stock for the treasury at a gross cost of $9,951
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 Jan. 31, 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 market conditions affecting the oil and
gas industry or long-term oil or gas prices; political events or
disturbances; 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 2003 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 and special items. In 2003, there was a special item
and a required accounting change reported in the first quarter and a
special item reported in the fourth quarter. In 2004, there was a
special item reported in the third quarter. 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 2003 Form
10- K and is also available through our website at www.exxonmobil.com.
ATTACHMENT I
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
(millions of dollars, except per share amounts)
Fourth Quarter Twelve Months
2004 2003 2004 2003
EARNINGS / EARNINGS PER SHARE
Total revenues and other income 83,357 65,952 298,027 246,738
Total costs and other deductions 70,092 56,574 256,786 214,772
Income before income taxes $13,265 $9,378 $41,241 $31,966
Income taxes 4,845 2,728 15,911 11,006
Income before accounting change $8,420 $6,650 $25,330 $20,960
Accounting change 0 0 0 550
Net income (U.S. GAAP) $8,420 $6,650 $25,330 $21,510
Net income per common share
(dollars)
Income before accounting change 1.31 1.01 3.91 3.16
Accounting change 0.00 0.00 0.00 0.08
Net income $1.31 $1.01 $3.91 $3.24
Net income per common share
- assuming dilution (dollars)
Income before accounting change 1.30 1.01 3.89 3.15
Accounting change 0.00 0.00 0.00 0.08
Net income $1.30 $1.01 $3.89 $3.23
OTHER FINANCIAL DATA
Dividends on common stock $1,738 $1,649 $6,896 $6,515
Per common share $0.27 $0.25 $1.06 $0.98
Millions of common shares
outstanding
At December 31 6,401 6,568
Average 6,411 6,580 6,482 6,634
Average - assuming dilution 6,461 6,612 6,519 6,662
Shareholders' equity at
December 31 $101,661 $89,915
Capital employed at December 31 $112,535 $102,048
Income taxes 4,845 2,728 15,911 11,006
Excise taxes 7,288 6,228 27,263 23,855
All other taxes 11,419 10,726 43,605 40,107
Total taxes $23,552 $19,682 $86,779 $74,968
ExxonMobil's share of income
taxes of equity companies $294 $321 $1,180 $983
ATTACHMENT II
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
(millions of dollars)
Fourth Quarter Twelve Months
2004 2003 2004 2003
FUNCTIONAL EARNINGS
Net Income (U.S. GAAP)
Upstream
United States 1,384 856 4,948 3,905
Non-U.S. 3,503 2,413 11,727 10,597
Downstream
United States 876 384 2,186 1,348
Non-U.S. 1,468 352 3,520 2,168
Chemical
United States 425 212 1,020 381
Non-U.S. 823 264 2,408 1,051
Corporate and financing (59) 2,169 (479) 1,510
Income before accounting change 8,420 6,650 25,330 20,960
Accounting change 0 0 0 550
Net income (U.S. GAAP) $8,420 $6,650 $25,330 $21,510
Accounting Change and Other
Special Items
Upstream
Non-U.S. 0 0 0 1,700
Downstream
United States 0 0 (550) 0
Corporate and financing 0 2,230 0 2,230
Accounting change 0 0 0 550
Corporate total $0 $2,230 ($550) $4,480
Earnings Excluding Accounting
Change and Other Special Items
Upstream
United States 1,384 856 4,948 3,905
Non-U.S. 3,503 2,413 11,727 8,897
Downstream
United States 876 384 2,736 1,348
Non-U.S. 1,468 352 3,520 2,168
Chemical
United States 425 212 1,020 381
Non-U.S. 823 264 2,408 1,051
Corporate and financing (59) (61) (479) (720)
Corporate total $8,420 $4,420 $25,880 $17,030
ATTACHMENT III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
Fourth Quarter Twelve Months
2004 2003 2004 2003
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 534 607 557 610
Canada 357 364 355 363
Europe 564 589 583 579
Asia Pacific 189 236 202 237
Africa 612 500 572 442
Other Non-U.S. 309 299 302 285
Worldwide 2,565 2,595 2,571 2,516
Natural gas production available
for sale, millions of cubic feet
daily (mcfd)
United States 1,810 2,038 1,947 2,246
Canada 951 994 972 943
Europe 5,370 5,467 4,614 4,498
Asia Pacific 1,382 1,711 1,519 1,803
Other Non-U.S. 917 648 812 629
Worldwide 10,430 10,858 9,864 10,119
Oil-equivalent production
(koebd)(a) 4,303 4,405 4,215 4,203
(a) Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
Fourth Quarter Twelve Months
2004 2003 2004 2003
Petroleum product sales (kbd)
United States 2,993 2,912 2,872 2,729
Canada 643 622 615 602
Europe 2,167 2,102 2,139 2,061
Asia Pacific 1,751 1,693 1,689 1,675
Other Non-U.S. 892 908 895 890
Worldwide 8,446 8,237 8,210 7,957
Gasolines, naphthas 3,380 3,342 3,301 3,238
Heating oils, kerosene, diesel 2,609 2,568 2,517 2,432
Aviation fuels 722 673 698 662
Heavy fuels 693 662 659 638
Specialty products 1,042 992 1,035 987
Total 8,446 8,237 8,210 7,957
Refinery throughput (kbd)
United States 1,881 1,874 1,850 1,806
Canada 470 445 468 450
Europe 1,701 1,626 1,663 1,566
Asia Pacific 1,491 1,345 1,423 1,390
Other Non-U.S. 309 313 309 298
Worldwide 5,852 5,603 5,713 5,510
Chemical product revenue
($ millions)
United States $4,050 $2,448 $14,236 $10,163
Non-U.S. $6,044 $4,036 $20,849 $15,090
Worldwide $10,094 $6,484 $35,085 $25,253
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,871 2,717 11,521 10,740
Non-U.S. 4,078 3,975 16,267 15,827
Worldwide 6,949 6,692 27,788 26,567
ATTACHMENT IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
(millions of dollars)
Fourth Quarter Twelve Months
2004 2003 2004 2003
Capital and Exploration Expenditures
Upstream
United States 520 571 1,922 2,125
Non-U.S. 2,774 2,733 9,793 9,863
Total 3,294 3,304 11,715 11,988
Downstream
United States 175 291 775 1,244
Non-U.S. 496 528 1,630 1,537
Total 671 819 2,405 2,781
Chemical
United States 79 94 262 333
Non-U.S. 177 113 428 359
Total 256 207 690 692
Other 12 30 75 64
Worldwide $4,233 $4,360 $14,885 $15,525
Exploration expenses charged to
income included above
Consolidated affiliates
United States 41 144 192 256
Non-U.S. 268 306 891 735
Equity companies - ExxonMobil
share
United States 9 0 9 1
Non-U.S. 16 6 27 25
Worldwide $334 $456 $1,119 $1,017
ATTACHMENT V
EXXON MOBIL CORPORATION
NET INCOME
$ Millions Per Common Share
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
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
CONTACT: ExxonMobil
Media Relations, 972/444-1109, 1108, 1107 and 1141
SOURCE: Exxon Mobil Corporation
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