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ExxonMobil announces Q3 2014 results

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Hydrocarbon Engineering,


ExxonMobil Chairman Rex W. Tillerson commented:

“Earnings in the period rose 3% from the third quarter of 2013, driven by higher margins and improved operations in the Downstream and Chemical businesses, partially offset by the impact of lower Upstream realisations.

“ExxonMobil’s quarterly results demonstrate the strength of our integrated business model. Integration across upstream, downstream and chemical gives us competitive advantages in scale, efficiency, technical and commercial capabilities, regardless of market fluctuations over the business cycle.

“The Corporation’s cash flow from operations and asset sales through the first nine months of 2014 fully covered net investments and shareholder distributions.

“We continue to meet our operational and project development objectives. Upstream production for 2014 remains on track with previous full-year estimates of 4 million oil-equivalent bpd as the company adds new production from project startups.”

Third quarter highlights

Earnings of US$ 8070 million increased US$ 200 million or 3% from the third quarter of 2013.

Earnings per share (assuming dilution) were US$ 1.89, an increase of 6%.

Capital and exploration expenditures were US$ 9.8 billion, down 7% from the third quarter of 2013.

Oil-equivalent production decreased 4.7% from the third quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 1%, with liquids up 0.6% and gas down 2.9%.

Cash flow from operations and asset sales was US$ 12.5 billion, including proceeds associated with asset sales of US$ 0.1 billion.

The Corporation distributed US$ 5.9 billion to shareholders in the third quarter of 2014, including US$ 3 billion in share purchases to reduce shares outstanding.

Dividends per share of US$ 0.69 increased 9.5% compared with the third quarter of 2013.

ExxonMobil entered into a second nonmonetary exchange agreement with LINN Energy, LLC to add 17 800 net acres in the Permian Basin to its U.S. oil and natural gas portfolio, managed by its subsidiary XTO Energy, Inc. This agreement, coupled with the first nonmonetary exchange that closed during the quarter, extends XTO’s leasehold position across the entire Permian Basin to more than 1.5 million acres and net oil-equivalent production to more than 95 000 bpd.

ExxonMobil announced the startup of the Tapis enhanced oil recovery (EOR) project, which is Malaysia’s first large-scale enhanced oil recovery project and will utilize the immiscible water-alternating-gas process to increase overall field recovery. The project exemplifies ExxonMobil's leadership in technology application and global project execution to maximise reserves recovery from producing fields.

Third Quarter 2014 versus Third Quarter 2013

Upstream earnings were US$ 6416 million in the third quarter of 2014, down US$ 297 million from the third quarter of 2013. Lower realisations decreased earnings by US$ 670 million. Favorable volume mix effects increased earnings by US$ 340 million. All other items increased earnings by US$ 30 million.

On an oil-equivalent basis, production decreased 4.7% from the third quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 1%.

Liquids production totaled 2065 kbd (thousands of barrels per day), down 134 kbd from the third quarter of 2013. The Abu Dhabi onshore concession expiry reduced volumes by 148 kbd. Excluding this impact, liquids production was up slightly as project ramp-up and work programs more than offset field decline, divestment impacts and higher downtime.

Third quarter natural gas production was 10,595 mcfd (millions of cubic feet per day), down 319 mcfd from 2013. Field decline and lower entitlement volumes were partly offset by new production from Papua New Guinea and work programs.

Earnings from U.S. Upstream operations were US$ 1257 million, US$ 207 million higher than the third quarter of 2013. Non-US Upstream earnings were US$ 5159 million, down US$ 504 million from the prior year.

Downstream earnings were US$ 1024 million, up US$ 432 million from the third quarter of 2013. Stronger margins, primarily refining, increased earnings by US$ 820 million. Volume and mix effects increased earnings by US$ 100 million. All other items, primarily foreign exchange impacts, decreased earnings by US$ 490 million. Petroleum product sales of 5999 kbd were 32 kbd lower than last year's third quarter.

Earnings from the US downstream were US$ 460 million, up US$ 145 million from the third quarter of 2013. Non-US downstream earnings of US$ 564 million were US$ 287 million higher than last year.

Chemical earnings of US$ 1200 million were US$ 175 million higher than the third quarter of 2013. Margins increased earnings by US$ 210 million, with improved commodities realisations partly offset by weaker specialties. Volume and mix effects increased earnings by US$ 10 million. All other items decreased earnings by US$ 40 million. Third quarter prime product sales of 6249 kt (thousands of metric tons) were essentially flat with last year's third quarter.

Corporate and financing expenses were US$ 570 million for the third quarter of 2014, up US$ 110 million from the third quarter of 2013.

During the third quarter of 2014, Exxon Mobil Corporation purchased 30 million shares of its common stock for the treasury to reduce the number of shares outstanding at a cost of US$ 3 billion. Share purchases to reduce shares outstanding are currently anticipated to equal US$ 3 billion in the fourth quarter of 2014. 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.

First Nine Months 2014 versus First Nine Months 2013

  • Earnings were US$ 25,950 million, up US$ 1720 million, or 7% from the first nine months of 2013.
  • Earnings per share increased 11% to US$ 6.04.
  • Capital and exploration expenditures were US$ 28.1 billion, down 14% from the first nine months of 2013.
  • Oil-equivalent production decreased 5.3% from 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 2%.
  • Upstream per-barrel profitability, excluding noncontrolling interest volumes, increased 17% to US$ 21.03 from full year 2013.
  • Cash flow from operations and asset sales was US$ 41.5 billion, including proceeds associated with asset sales of US$ 3.8 billion, fully covering net investments and shareholder distributions.
  • The Corporation distributed US$ 17.6 billion to shareholders in the first nine months of 2014 through dividends and share purchases to reduce shares outstanding.

Earnings of US$ 25 950 million increased US$ 1720 million from 2013. Earnings per share increased 11% to US$ 6.04.

Upstream earnings were US$ 22 080 million, up US$ 2025 million from the first nine months of 2013. Lower prices and volumes were more than offset by favorable mix effects, increasing earnings by a net US$ 470 million. All other items, primarily asset sales, increased earnings by US$ 1.6 billion.

On an oil-equivalent basis, production was down 5.3% compared to the same period in 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 2%.

Liquids production of 2087 kbd decreased 105 kbd compared to 2013. The Abu Dhabi onshore concession expiry reduced volumes by 137 kbd. Excluding this impact, liquids production was up 1.5%, driven by project ramp-up and work programs.

Natural gas production of 11 115 mcfd decreased 703 mcfd from 2013, as expected US field decline and lower European demand were partially offset by project ramp-up and work programs.

Earnings from US upstream operations were US$ 3694 million, up US$ 689 million from 2013. Earnings outside the US were US$ 18 386 million, up US$ 1336 million from the prior year.

Downstream earnings of US$ 2548 million increased US$ 15 million from 2013. Lower margins, mainly refining, decreased earnings by US$ 280 million. Volume and mix effects increased earnings by US$ 460 million. All other items, primarily unfavorable foreign exchange and tax impacts, partially offset by lower operating expenses, decreased earnings by US$ 160 million. Petroleum product sales of 5886 kbd increased 35 kbd from 2013.

US Downstream earnings were US$ 1619 million, up US$ 17 million from 2013. Non-US Downstream earnings were US$ 929 million, a decrease of US$ 2 million from the prior year.

Chemical earnings of US$ 3088 million increased US$ 170 million from 2013. Higher margins increased earnings by US$ 20 million, while volume and mix effects increased earnings by US$ 140 million. All other items increased earnings by US$ 10 million. Prime product sales of 18 516 kt were up 530 kt from 2013, driven by increased Singapore production.

Corporate and financing expenses were US$ 1766 million in the first nine months of 2014, up US$ 490 million from 2013, primarily due to unfavorable tax impacts.

Gross share purchases for the first nine months of 2014 were US$ 9.9 billion, reducing shares outstanding by 100 million shares.


Adapted from a press release by David Bizley

Read the article online at: https://www.hydrocarbonengineering.com/refining/03112014/exxonmobil-announces-q3-2014-results/


 

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