Exxon Mobil Corporation (ticker: XOM, exchange: New York Stock Exchange (.N))
News Release -
30-Jan-2006
Exxon Mobil Corporation Announces Estimated Fourth Quarter 2005 Results IRVING, Texas--(BUSINESS WIRE)--Jan. 30, 2006--Exxon Mobil
Corporation (NYSE:XOM):
Fourth Quarter Twelve Months
-------------- ---------------
2005 2004 % 2005 2004 %
------- ------ --- ------- ------- ---
Net Income
---------------------------
$ Millions 10,710 8,420 27 36,130 25,330 43
$ Per Common Share
Assuming Dilution 1.71 1.30 32 5.71 3.89 47
Earnings Excluding Special
Items
---------------------------
$ Millions 10,320 8,420 23 33,860 25,880 31
$ Per Common Share
Assuming Dilution 1.65 1.30 27 5.35 3.97 35
Capital and Exploration
Expenditures - $ Millions 5,331 4,233 17,699 14,885
Exxon Mobil Corporation (NYSE:XOM) today reported fourth quarter
2005 results. Earnings excluding special items were $10,320 million
($1.65 per share), an increase of $1,900 million from the fourth
quarter of 2004. Fourth quarter net income included a special gain of
$390 million from the resolution of a previously disclosed litigation
issue. Including this gain, net income of $10,710 million ($1.71 per
share) increased by $2,290 million.
ExxonMobil's Chairman Rex W. Tillerson Commented:
"ExxonMobil's fourth quarter earnings excluding special items were
$10,320 million, up 23% from fourth quarter 2004, reflecting higher
crude oil and natural gas realizations and improved refining and
marketing margins. Net income for the fourth quarter was $10,710
million, up 27% from 2004.
"There is a great deal of public interest in global energy prices.
We recognize that consumers worldwide want and need reliable supplies
of affordable energy -- to fuel their vehicles, light and heat their
homes and run their businesses. Our strong financial results will
continue to allow us to make significant, long-term investments
required to do our part in meeting the world's energy needs.
"ExxonMobil continued its active investment program in the fourth
quarter, spending $5.3 billion on capital and exploration projects,
bringing full year spending to $17.7 billion, an increase of 19% or
$2.8 billion versus 2004.
"The Corporation distributed a total of $6.8 billion to
shareholders in the fourth quarter through dividends and share
purchases to reduce shares outstanding. Distributions to shareholders
totaled $23.2 billion for the full year, an increase of 56% or $8.3
billion versus 2004."
FOURTH QUARTER HIGHLIGHTS
-- Earnings excluding special items were $10,320 million, an
increase of 23% or $1,900 million from the fourth quarter of
2004.
-- Net income of $10,710 million includes a special gain of $390
million from the previously disclosed litigation issue.
-- Cash flow from operations and asset sales was approximately
$11.9 billion, including asset sales of $1.4 billion.
-- Share purchases to reduce shares outstanding of $5.0 billion
were at the same level as the third quarter of 2005.
-- Earnings per share excluding special items were $1.65, an
increase of 27%, reflecting strong earnings and the reduction
in the number of shares outstanding.
-- Production from the multi-phase Sakhalin 1 project started on
schedule during the fourth quarter. This initial phase of the
project is expected to produce 250 thousand barrels per day
(gross) of liquids and 130 million cubic feet per day (gross)
of gas by the end of 2006.
Fourth Quarter 2005 vs. Fourth Quarter 2004
Upstream earnings were $7,038 million, up $2,151 million from the
fourth quarter of 2004 reflecting higher crude oil and natural gas
realizations.
On an oil-equivalent basis, production decreased by 1% from the
fourth quarter of 2004. Excluding the residual impact of hurricanes
Katrina and Rita, as well as divestment and entitlement effects,
production increased 2%.
Liquids production of 2,629 kbd (thousands of barrels per day) was
64 kbd higher. Higher production from projects in West Africa,
Azerbaijan and the North Sea was partly offset by the impact of mature
field decline, the residual effect of hurricanes Katrina and Rita, and
entitlement and divestment impacts. Excluding the impact of the
hurricanes, entitlement effects, and divestments, liquids production
increased by 6%.
Fourth quarter natural gas production was 9,822 mcfd (millions of
cubic feet per day) compared with 10,430 mcfd last year. Higher
volumes from projects in Qatar, the North Sea and North America were
more than offset by the impact of mature field decline, lower European
demand, maintenance activity, the residual effect of hurricanes
Katrina and Rita, as well as entitlement and divestment impacts.
Earnings from U.S. Upstream operations were $1,787 million, $403
million higher than the fourth quarter of 2004. Non-U.S. Upstream
earnings were $5,251 million, up $1,748 million from 2004.
Downstream earnings were $2,390 million, up $46 million from the
fourth quarter 2004. Higher refining and marketing margins were partly
offset by residual impacts from hurricanes Katrina and Rita. Petroleum
product sales were 8,322 kbd, 124 kbd lower than last year's fourth
quarter, primarily due to the hurricanes.
U.S. Downstream earnings were $1,158 million, up $282 million.
Non-U.S. Downstream earnings of $1,232 million were $236 million lower
than the fourth quarter of 2004.
Chemical earnings excluding special items were $835 million, down
$413 million from the same quarter a year ago primarily due to reduced
margins from increased feedstock costs. Prime product sales of 6,292
kt (thousands of metric tons) were down 657 kt from last year's fourth
quarter, largely due to the hurricanes.
Corporate and financing recorded a gain of $57 million, up $116
million mainly due to higher interest income.
During the fourth quarter of 2005, Exxon Mobil Corporation
purchased 92 million shares of its common stock for the treasury at a
gross cost of $5.3 billion. 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 6,222 million at the
end of the third quarter to 6,133 million at the end of the fourth
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.
Full Year 2005 vs. Full Year 2004
Net income of $36,130 million ($5.71 per share) increased $10,800
million from 2004. Net income for 2005 included special items totaling
$2,270 million. Excluding special items in both periods, earnings
increased by $8 billion versus 2004.
FULL YEAR HIGHLIGHTS
-- Earnings excluding special items were $33,860 million, an
increase of 31%, with strong contributions from all segments
of the business. Net income increased by 43%.
-- Earnings per share excluding special items increased by 35%
reflecting strong earnings and the reduction in the number of
shares outstanding.
-- Special items of $2,270 million 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, a
$390 million gain from the previously disclosed litigation
issue, and a charge of $200 million for Allapattah. Net income
for 2004 included a $550 million special charge for
Allapattah.
-- Cash flow from operations and asset sales was approximately
$54.2 billion, including $6.0 billion from asset sales.
-- The Corporation distributed a total of $23.2 billion to
shareholders in 2005 through dividends and share purchases to
reduce shares outstanding, an increase of $8.3 billion versus
2004.
-- Capital and exploration expenditures were $17.7 billion, an
increase of $2.8 billion versus 2004.
Upstream earnings excluding special items were $22,729 million, an
increase of $6,054 million from 2004. Higher liquids and natural gas
realizations were partly offset by lower production.
On an oil-equivalent basis, production decreased 3.6% from last
year. Excluding the impact of hurricanes Katrina and Rita, as well as
divestment and entitlement effects, production decreased by 1%.
Liquids production of 2,523 kbd decreased by 48 kbd from 2004.
Higher production from projects in West Africa, the North Sea and
North America was more than offset by mature field decline, the impact
of hurricanes Katrina and Rita, maintenance activity, as well as
entitlement and divestment impacts. Excluding the impact of the
hurricanes, entitlement effects, and divestments, liquids production
increased 1.5%.
Natural gas production of 9,251 mcfd, decreased 613 mcfd from
2004. Higher volumes from projects in Qatar, the North Sea and North
America were more than offset by mature field decline, the impact of
hurricanes Katrina and Rita, maintenance activity, lower European
demand, as well as entitlement and divestment impacts.
Earnings from U.S. Upstream operations for 2005 were $6,200
million, an increase of $1,252 million. Earnings outside the U.S.,
excluding special items, were $16,529 million, $4,802 million higher
than 2004.
Downstream earnings excluding special items were $7,882 million,
an increase of $1,626 million from 2004 reflecting stronger worldwide
refining margins partly offset by weaker marketing margins. Petroleum
product sales of 8,257 kbd increased from 8,210 kbd in 2004.
U.S. Downstream earnings excluding special items were $4,111
million, up $1,375 million. Non-U.S. Downstream earnings, excluding
special items, were $3,771 million, $251 million higher than last
year.
Chemical earnings excluding special items were $3,403 million,
down $25 million from 2004 due to lower volumes. Prime product sales
were 26,777 kt, down 1,011 kt from 2004, largely due to the
hurricanes.
Corporate and financing expenses of $154 million decreased by $325
million mainly due to higher interest income.
Gross share purchases in 2005 were $18,221 million which reduced
shares outstanding by 4.2%.
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 30, 2006. 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 project plans, timing, and capacities, 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; severe weather events; changes in technical or operating
conditions; and other factors 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
FOURTH QUARTER 2005
-----------------------------------
(millions of dollars, unless noted)
Fourth Quarter Twelve Months
--------------- -----------------
2005 2004 2005 2004
------- ------- -------- --------
Earnings / Earnings Per Share
Total revenues and other income 99,662 83,365 370,998 298,035
Total costs and other deductions 81,944 70,100 311,566 256,794
Income before income taxes 17,718 13,265 59,432 41,241
Income taxes 7,008 4,845 23,302 15,911
Net income (U.S. GAAP) 10,710 8,420 36,130 25,330
Net income per common share
(dollars) 1.72 1.31 5.76 3.91
Net income per common share
- assuming dilution (dollars) 1.71 1.30 5.71 3.89
Other Financial Data
Dividends on common stock
Total 1,795 1,738 7,185 6,896
Per common share (dollars) 0.29 0.27 1.14 1.06
Millions of common shares
outstanding
At December 31 6,133 6,401
Average - assuming dilution 6,211 6,461 6,322 6,519
Shareholders' equity at December 31 111,058 101,756
Capital employed at December 31 121,181 112,630
Income taxes 7,008 4,845 23,302 15,911
Excise taxes 7,829 7,288 30,742 27,263
All other taxes 10,871 11,419 44,571 43,605
Total taxes 25,708 23,552 98,615 86,779
ExxonMobil's share of income taxes
of equity companies 466 294 2,226 1,180
Attachment II
EXXON MOBIL CORPORATION
FOURTH QUARTER 2005
-------------------------
(millions of dollars)
Fourth Quarter Twelve Months
-------------- ---------------
2005 2004 2005 2004
------- ------ ------- -------
Net Income (U.S. GAAP)
Upstream
United States 1,787 1,384 6,200 4,948
Non-U.S. 5,251 3,503 18,149 11,727
Downstream
United States 1,158 876 3,911 2,186
Non-U.S. 1,232 1,468 4,081 3,520
Chemical
United States 281 425 1,186 1,020
Non-U.S. 944 823 2,757 2,408
Corporate and financing 57 (59) (154) (479)
Corporate total 10,710 8,420 36,130 25,330
Special Items
Upstream
Non-U.S. 0 0 1,620 0
Downstream
United States 0 0 (200) (550)
Non-U.S. 0 0 310 0
Chemical
Non-U.S. 390 0 540 0
Corporate total 390 0 2,270 (550)
Earnings Excluding Special Items
Upstream
United States 1,787 1,384 6,200 4,948
Non-U.S. 5,251 3,503 16,529 11,727
Downstream
United States 1,158 876 4,111 2,736
Non-U.S. 1,232 1,468 3,771 3,520
Chemical
United States 281 425 1,186 1,020
Non-U.S. 554 823 2,217 2,408
Corporate and financing 57 (59) (154) (479)
Corporate total 10,320 8,420 33,860 25,880
Cash flow from operations and asset sales (billions of
dollars)
Net cash provided by operating
activities (U.S. GAAP) 10.5 12.4 48.2 40.6
Sales of subsidiaries, investments and
property, plant and equipment 1.4 0.7 6.0 2.7
Cash flow from operations and asset
sales 11.9 13.1 54.2 43.3
Attachment III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2005
-------------------------
Fourth Quarter Twelve Months
-------------- -------------
2005 2004 2005 2004
------ ------- ------ ------
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 431 534 477 557
Canada 356 357 346 355
Europe 539 564 546 583
Asia Pacific 154 189 169 202
Africa 795 612 666 572
Other 354 309 319 302
Worldwide 2,629 2,565 2,523 2,571
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 1,620 1,810 1,739 1,947
Canada 912 951 918 972
Europe 4,804 5,370 4,315 4,614
Asia Pacific 1,132 1,382 1,268 1,519
Other 1,354 917 1,011 812
Worldwide 9,822 10,430 9,251 9,864
Oil-equivalent production (koebd)(a) 4,266 4,303 4,065 4,215
(a) Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels
Attachment IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2005
------------------------
Fourth Quarter Twelve Months
-------------- ---------------
2005 2004 2005 2004
------- ------ ------- -------
Petroleum product sales (kbd)
United States 2,900 2,993 2,915 2,872
Canada 641 643 620 615
Europe 2,155 2,167 2,115 2,139
Asia Pacific 1,837 1,751 1,786 1,689
Other 789 892 821 895
Worldwide 8,322 8,446 8,257 8,210
Gasolines, naphthas 3,274 3,380 3,274 3,301
Heating oils, kerosene, diesel 2,632 2,609 2,560 2,517
Aviation fuels 649 722 700 698
Heavy fuels 754 693 711 659
Specialty products 1,013 1,042 1,012 1,035
Total 8,322 8,446 8,257 8,210
Refinery throughput (kbd)
United States 1,669 1,881 1,794 1,850
Canada 479 470 466 468
Europe 1,717 1,701 1,672 1,663
Asia Pacific 1,484 1,491 1,490 1,423
Other 303 309 301 309
Worldwide 5,652 5,852 5,723 5,713
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,228 2,871 10,369 11,521
Non-U.S. 4,064 4,078 16,408 16,267
Worldwide 6,292 6,949 26,777 27,788
Attachment V
EXXON MOBIL CORPORATION
FOURTH QUARTER 2005
-------------------------
(millions of dollars)
Fourth Quarter Twelve Months
-------------- ---------------
2005 2004 2005 2004
------- ------ ------- -------
Capital and Exploration Expenditures
Upstream
United States 542 520 2,142 1,922
Non-U.S. 3,852 2,774 12,328 9,793
Total 4,394 3,294 14,470 11,715
Downstream
United States 213 175 753 775
Non-U.S. 535 496 1,742 1,630
Total 748 671 2,495 2,405
Chemical
United States 61 79 243 262
Non-U.S. 108 177 411 428
Total 169 256 654 690
Other 20 12 80 75
Worldwide 5,331 4,233 17,699 14,885
Exploration expenses charged to income
included above
Consolidated affiliates
United States 54 41 157 192
Non-U.S. 278 268 795 891
Equity companies - ExxonMobil share
United States 0 9 0 9
Non-U.S. 0 16 17 27
Worldwide 332 334 969 1,119
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
Fourth Quarter 10,710 1.72
Year 36,130 5.76
CONTACT: ExxonMobil
Media Relations, 972/444-1109, 1108, 1107 and 1141
SOURCE: Exxon Mobil Corporation
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Exxon Mobil Corporation
