ExxonMobil reports on third quarter performance

“ExxonMobil’s integrated business continues to deliver solid results,” said Rex W. Tillerson, Chairman and CEO. “While the operating environment remains challenging, the company continues to focus on capturing efficiencies, advancing strategic investments, and creating long term shareholder value.”

During the quarter, Upstream earnings were US$620 million. Volumes for the quarter declined 3% to 3.8 million oil-equivalent bpd compared with a year ago, due to unplanned downtime, primarily in Nigeria, and field decline partially offset by increased production from recent project startups.

Third quarter Chemical earnings of US$1.2 billion, comparable with prior year results, reflect higher maintenance costs, partially offset by increased specialty product sales. Downstream earnings declined to US$1.2 billion primarily due to weaker refining margins.

During the quarter, capital and exploration expenses were reduced by 45 % to US$4.2 billion. The corporation distributed US$3.1 billion in dividends to shareholders in the third quarter.

Third quarter 2016 highlights

• Earnings of US$2.7 billion decreased US$1.6 billion, or 38%, from the third quarter of 2015.
• Earnings per share assuming dilution were US$0.63.
• Cash flow from operations and asset sales was US$6.3 billion, including proceeds associated with asset sales of US$1 billion.
• Capital and exploration expenditures were US$4.2 billion, down 45% from the third quarter of 2015.
• Oil equivalent production was 3.8 million oil equivalent bpd, with liquids down 5.1 % and natural gas up 0.8 %.
• The corporation distributed US$3.1 billion in dividends to shareholders.
• Dividends per share of US$0.75 increased 2.7% compared with the third quarter of 2015.
• ExxonMobil and InterOil Corporation announced an agreed transaction worth more than US$2.5 billion, under which ExxonMobil will acquire all of the outstanding shares of InterOil. The acquisition will give ExxonMobil access to InterOil’s resource base, which includes interests in six licenses in Papua New Guinea covering about four million acres. The transaction is pending the outcome of a shareholder appeal of the court decision approving the transaction.
• ExxonMobil Kazakhstan Ventures Inc., a 25% shareholder in Tengizchevroil LLP, has approved the final investment decision for the Future Growth and Wellhead Pressure Management Project as part of the next expansion phase of the Tengiz oilfield.
• In Guyana, the Liza-3 appraisal well was successfully completed in October, confirming a world class resource discovery in excess of 1 billion oil equivalent bbls. Also in October, the Owowo-3 exploration well, located offshore Nigeria, confirmed a discovery of 500 million to 1 billion bbls of oil.
• ExxonMobil announced plans to increase production of ultra-low sulfur fuels at the Beaumont, Texas, refinery by approximately 40 000 bpd. The new unit will use proprietary technology to remove sulfur while minimizing octane loss, and will ensure gasoline meets the latest environmental standards.
• The company announced plans to expand its specialty elastomers plant in Newport, Wales. The project is expected to be completed in late 2017 and will result in a 25% increase in global capacity to manufacture Santoprene thermoplastic vulcanizate, high performance elastomers used for automotive, industrial and consumer applications.
• ExxonMobil and Saudi Basic Industries Corporation (SABIC) are considering the potential development of a jointly owned petrochemical complex on the US Gulf Coast. The project would include a steam cracker and derivative units, and would be located in Texas or Louisiana near natural gas feedstock. A final investment decision will be made upon completion of necessary studies.
• During the quarter, the company announced new developments in its relationships with the Georgia Institute of Technology, Princeton University and the University of Texas at Austin to pursue technologies to help meet growing energy demand while reducing environmental impacts and the risk of climate change.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/02112016/exxonmobil-reports-on-third-quarter-performance/