ExxonMobil Delivers a Strong Quarter
Exxon Mobil Corporation is outpacing its competitors in providing shareholder value and is well positioned to deliver vital energy to meet growing global demand while protecting the environment, the corporation said at its Annual Meeting of Shareholders.
"The past year was an outstanding year and a record for our corporation by nearly every measure," Rex W. Tillerson, chairman and chief executive officer, said in a presentation to shareholders. "We achieved these results by delivering industry-leading safety performance, excellence in operations and environmental protection, strong governance and disciplined investment performance."
The annualized return on investment for ExxonMobil shareholders was more than 24% per year over the past five years, tripling the value of an investment during the period. Put another way, $1,000 invested in ExxonMobil in 1987 is now worth nearly $19,000, double the growth of the Standard & Poor's 500 Index and ahead of the average of ExxonMobil's competitors.
"We generated greater shareholder value than our industry competition and greater value than the broader market," said Tillerson. "Millions of people have benefited financially by holding ExxonMobil shares either directly or indirectly through their pension, insurance and mutual funds."
Tillerson outlined the company's efforts to protect the environment, by reducing greenhouse gas emissions, preventing spills and protecting biodiversity.
"Energy security, economic growth and environmental impacts are increasingly on the minds of people today," he said. "We're focused on safely and reliably meeting the growing energy demand while working to reduce our impact on the environment."
ExxonMobil has spent more than $2 billion over the past five years on initiatives to reduce greenhouse gas emissions and improve efficiency, and plans to spend another $1 billion by 2010. Through actions taken in 2006 and 2007, the company reduced greenhouse gas emissions by about 5 million metric tons in 2007.
"We have the same concerns as people everywhere, and that is how to provide the world with the energy it needs while reducing greenhouse gas emissions."
Reporting financial results, Tillerson said ExxonMobil led the oil and gas industry with average return on capital employed of 32 percent, almost 40 percent greater than its closest competitor.
The company started production at seven major projects, adding production capacity of nearly 220,000 oil-equivalent barrels per day. The year also marked the 14th consecutive year that ExxonMobil replaced more than 100 percent of its production with new reserves for future production.
Shareholders heard that the corporation expects 12 major developments to begin production in 2008, adding an additional 375,000 oil-equivalent barrels per day to ExxonMobil's production. That includes the start up in Qatar of two of the world's largest facilities to produce liquefied natural gas, which will yield nearly 2.5 billion cubic feet of clean-burning natural gas every day for power stations, factories and homes around the world.
Between 2008 and 2010, ExxonMobil expects to participate in the start up of 19 new projects which, at peak, would collectively add more than 725,000 oil-equivalent barrels per day to ExxonMobil's production.
In all, ExxonMobil's industry-leading portfolio of more than 100 projects is expected to support development of more than 24 billion oil-equivalent barrels of energy.
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