ExxonMobil Announces Estimated 4Q and 2004 Results



 

                                    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) 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.
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