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ExxonMobil releases 2016 results

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Hydrocarbon Engineering,

Exxon Mobil Corporation has announced estimated 2016 earnings of US$7.8 billion, or US$1.88 per diluted share. An asset recoverability review was completed in the fourth quarter and resulted in a US upstream asset impairment charge of about US$2 billion mainly related to dry gas operations with undeveloped acreage in the Rocky Mountains region of the US. Excluding the impairment charge, full year earnings were US$9.9 billion compared with US$16.2 billion a year earlier, reflecting lower commodity prices and refining margins.

Fourth quarter earnings were US$1.7 billion, including the impairment charge recorded during the period. Excluding the impairment charge, earnings of US$3.7 billion were up from the US$2.8 billion reported in the fourth quarter of 2015 (4Q15), due to higher liquids realisations partly offset by weaker refining margins.

“ExxonMobil demonstrated solid operating performance in 2016. Financial results for the year were negatively impacted by the prolonged downturn in commodity prices and the impairment charge,” said Darren W. Woods, chairman and chief executive officer. “The company’s continued focus on fundamentals and our ability to leverage an attractive global portfolio through our integrated business ensures we are well positioned to generate long-term shareholder value.”

ExxonMobil completed five major upstream projects during the year in Australia, Kazakhstan and the US, adding 250 000 bpd of working interest production capacity. The company made three important new discoveries in Guyana, Nigeria and Papua New Guinea, and is growing its exploration portfolio, capturing 16 exploration blocks in 2016 with three additional awards to be finalised in 2017.

In the downstream segment, ExxonMobil completed a 20 000 bpd crude expansion project at the Beaumont, Texas, refinery that increased the site’s flexibility to process domestic light crude oils. ExxonMobil is also advancing projects to increase production of higher value fuels and lubricants, including investments at refineries in Belgium and the Netherlands.

The chemical business continued to capitalise on its liquids and gas cracking capabilities, capturing increased specialty and commodity product demand. The company is selectively investing to extend its advantage with projects that expand production capacity for ethylene and related products around the world. During 2016, the corporation distributed US$12.5 billion in dividends to shareholders.

Full year 2016 highlights
  • Earnings of US$7.8 billion decreased 51% from US$16.2 billion in 2015. Excluding an impairment charge of US$2 billion, earnings were US$9.9 billion, a decrease of US$6.3 billion from the prior year.
  • Earnings per share assuming dilution were US$1.88.
  • Cash flow from operations and asset sales was US$26.4 billion, including proceeds associated with asset sales of US$4.3 billion.
  • Capital and exploration expenditures were US$19.3 billion, down 38% from 2015.
  • Oil-equivalent production was down slightly at 4.1 million bpd, with liquids up 0.9% and natural gas down 3.7%.
  • The corporation distributed US$12.5 billion in dividends to shareholders.


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