EX-99 2 r8k4q05ex991.htm Exxon Mobil Corporation - 8k Press Release



 

                   Exhibit 99.1

 

 

News Release

[r4q05ex991.gif.gif]

 

Exxon Mobil Corporation

 

5959 Las Colinas Boulevard

 

Irving, TX  75039

 

972 444 1107 Telephone

 

 

972 444 1138 Facsimile

 

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

MONDAY, JANUARY 30, 2006

 





EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED

FOURTH QUARTER 2005 RESULTS




 

Fourth Quarter

  

Twelve Months

 
 

2005

2004

%

 

2005

2004

%

Net Income

       

$ Millions

10,710

8,420

27

 

36,130

25,330

43

$ Per Common Share


 

  



 

Assuming Dilution

1.71

1.30

32

 

5.71

3.89

47

        

Earnings Excluding Special Items

       

$ Millions

10,320

8,420

23

 

33,860

25,880

31

$ Per Common Share



  



 

Assuming Dilution

1.65

1.30

27

 

5.35

3.97

35

        

Capital and Exploration

       

Expenditures - $ Millions

5,331

4,233

  

17,699

14,885

 




IRVING, TX, January 30 -- Exxon Mobil Corporation today reported fourth quarter 2005 results.  Earnings excluding special items were $10,320 million ($1.65 per share), an increase of $1,900 million from the fourth quarter of 2004.  Fourth quarter net income included a special gain of $390 million from the resolution of a previously disclosed litigation issue.  Including this gain, net income of $10,710 million ($1.71 per share) increased by $2,290 million.




EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:


"ExxonMobil's fourth quarter earnings excluding special items were $10,320 million, up 23% from fourth quarter 2004, reflecting higher crude oil and natural gas realizations and improved refining and marketing margins.  Net income for the fourth quarter was $10,710 million, up 27% from 2004.


There is a great deal of public interest in global energy prices.  We recognize that consumers worldwide want and need reliable supplies of affordable energy - to fuel their vehicles, light and heat their homes and run their businesses.  Our strong financial results will continue to allow us to make significant, long-term investments required to do our part in meeting the world's energy needs.


ExxonMobil continued its active investment program in the fourth quarter, spending $5.3 billion on capital and exploration projects, bringing full year spending to $17.7 billion, an increase of 19% or $2.8 billion versus 2004.


The Corporation distributed a total of $6.8 billion to shareholders in the fourth quarter through dividends and share purchases to reduce shares outstanding.  Distributions to shareholders totaled $23.2 billion for the full year, an increase of 56% or $8.3 billion versus 2004."



FOURTH QUARTER HIGHLIGHTS


·

Earnings excluding special items were $10,320 million, an increase of 23% or $1,900 million from the fourth quarter of 2004.


·

Net income of $10,710 million includes a special gain of $390 million from the previously disclosed litigation issue.


·

Cash flow from operations and asset sales was approximately $11.9 billion, including asset sales of $1.4 billion.


·

Share purchases to reduce shares outstanding of $5.0 billion were at the same level as the third quarter of 2005.


·

Earnings per share excluding special items were $1.65, an increase of 27%, reflecting strong earnings and the reduction in the number of shares outstanding.


·

Production from the multi-phase Sakhalin 1 project started on schedule during the fourth quarter.  This initial phase of the project is expected to produce 250 thousand barrels per day (gross) of liquids and 130 million cubic feet per day (gross) of gas by the end of 2006.




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Fourth Quarter 2005 vs. Fourth Quarter 2004


Upstream earnings were $7,038 million, up $2,151 million from the fourth quarter of 2004 reflecting higher crude oil and natural gas realizations.


On an oil-equivalent basis, production decreased by 1% from the fourth quarter of 2004.  Excluding the residual impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production increased 2%.


Liquids production of 2,629 kbd (thousands of barrels per day) was 64 kbd higher.  Higher production from projects in West Africa, Azerbaijan and the North Sea was partly offset by the impact of mature field decline, the residual effect of hurricanes Katrina and Rita, and entitlement and divestment impacts.  Excluding the impact of the hurricanes, entitlement effects, and divestments, liquids production increased by 6%.


Fourth quarter natural gas production was 9,822 mcfd (millions of cubic feet per day) compared with 10,430 mcfd last year.  Higher volumes from projects in Qatar, the North Sea and North America were more than offset by the impact of mature field decline, lower European demand, maintenance activity, the residual effect of hurricanes Katrina and Rita, as well as entitlement and divestment impacts.


Earnings from U.S. Upstream operations were $1,787 million, $403 million higher than the fourth quarter of 2004.  Non-U.S. Upstream earnings were $5,251 million, up $1,748 million from 2004.


Downstream earnings were $2,390 million, up $46 million from the fourth quarter 2004.  Higher refining and marketing margins were partly offset by residual impacts from hurricanes Katrina and Rita.  Petroleum product sales were 8,322 kbd, 124 kbd lower than last year's fourth quarter, primarily due to the hurricanes.


U.S. Downstream earnings were $1,158 million, up $282 million.  Non-U.S. Downstream earnings of $1,232 million were $236 million lower than the fourth quarter of 2004.



-3-


Chemical earnings excluding special items were $835 million, down $413 million from the same quarter a year ago primarily due to reduced margins from increased feedstock costs.  Prime product sales of 6,292 kt (thousands of metric tons) were down 657 kt from last year's fourth quarter, largely due to the hurricanes.


Corporate and financing recorded a gain of $57 million, up $116 million mainly due to higher interest income.


During the fourth quarter of 2005, Exxon Mobil Corporation purchased 92 million shares of its common stock for the treasury at a gross cost of $5.3 billion.  These purchases included $5.0 billion to reduce the number of shares outstanding and the balance to offset shares issued in conjunction with the company benefits plans and programs.  Shares outstanding were reduced from 6,222 million at the end of the third quarter to 6,133 million at the end of the fourth quarter.  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.





-4-


Full Year 2005 vs. Full Year 2004


Net income of $36,130 million ($5.71 per share) increased $10,800 million from 2004.  Net income for 2005 included special items totaling $2,270 million.  Excluding special items in both periods, earnings increased by $8 billion versus 2004.



FULL YEAR HIGHLIGHTS


·

Earnings excluding special items were $33,860 million, an increase of 31%, with strong contributions from all segments of the business.  Net income increased by 43%.


·

Earnings per share excluding special items increased by 35% reflecting strong earnings and the reduction in the number of shares outstanding.


·

Special items of $2,270 million included a $1,620 million special gain related to Gasunie, a $460 million positive impact from the sale of the Corporation's stake in Sinopec, a $390 million gain from the previously disclosed litigation issue, and a charge of $200 million for Allapattah.  Net income for 2004 included a $550 million special charge for Allapattah.


·

Cash flow from operations and asset sales was approximately $54.2 billion, including $6.0 billion from asset sales.


·

The Corporation distributed a total of $23.2 billion to shareholders in 2005 through dividends and share purchases to reduce shares outstanding, an increase of $8.3 billion versus 2004.


·

Capital and exploration expenditures were $17.7 billion, an increase of $2.8 billion versus 2004.



Upstream earnings excluding special items were $22,729 million, an increase of $6,054 million from 2004.  Higher liquids and natural gas realizations were partly offset by lower production.


On an oil-equivalent basis, production decreased 3.6% from last year.  Excluding the impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production decreased by 1%.


Liquids production of 2,523 kbd decreased by 48 kbd from 2004.  Higher production from projects in West Africa, the North Sea and North America was more than offset by mature field decline, the impact of hurricanes Katrina and Rita, maintenance activity, as well as entitlement and divestment impacts.  Excluding the impact of the hurricanes, entitlement effects, and divestments, liquids production increased 1.5%.



-5-


Natural gas production of 9,251 mcfd, decreased 613 mcfd from 2004.  Higher volumes from projects in Qatar, the North Sea and North America were more than offset by mature field decline, the impact of hurricanes Katrina and Rita, maintenance activity, lower European demand, as well as entitlement and divestment impacts.


Earnings from U.S. Upstream operations for 2005 were $6,200 million, an increase of $1,252 million.  Earnings outside the U.S., excluding special items, were $16,529 million, $4,802 million higher than 2004.


Downstream earnings excluding special items were $7,882 million, an increase of $1,626 million from 2004 reflecting stronger worldwide refining margins partly offset by weaker marketing margins.  Petroleum product sales of 8,257 kbd increased from 8,210 kbd in 2004.


U.S. Downstream earnings excluding special items were $4,111 million, up $1,375 million.  Non-U.S. Downstream earnings, excluding special items, were $3,771 million, $251 million higher than last year.


Chemical earnings excluding special items were $3,403 million, down $25 million from 2004 due to lower volumes.  Prime product sales were 26,777 kt, down 1,011 kt from 2004, largely due to the hurricanes.


Corporate and financing expenses of $154 million decreased by $325 million mainly due to higher interest income.


Gross share purchases in 2005 were $18,221 million which reduced shares outstanding by 4.2%.


Estimates of key financial and operating data follow.  Financial data, except per share amounts, are expressed in millions of dollars.




-6-


ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. central time on January 30, 2006.  To listen to the event live or in archive, go to our website at www.exxonmobil.com.




Statements in this release relating to future plans, projections, events, or conditions are forward-looking statements.  Actual results, including project plans, timing, and capacities, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; political events or disturbances; reservoir performance; the outcome of commercial negotiations; severe weather events; changes in technical or operating conditions; and other factors discussed under the heading "Factors Affecting Future Results" on our website and in Item 1 of ExxonMobil's 2004 Form 10-K.  We assume no duty to update these statements as of any future date.


Consistent with previous practice this press release includes both net income and earnings excluding special items.  Earnings that exclude special items are a non-GAAP financial measure and are included to help facilitate comparisons of base business performance across periods.  A reconciliation to net income is shown in Attachment II.  The release also includes cash flow from operations and asset sales.  Because of the regular nature of our asset management and divestment program, we believe it is useful for investors to consider sales proceeds together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities.  Calculation of this cash flow is shown in Attachment II.  Further information on ExxonMobil's frequently used financial and operating measures is contained on pages 28 and 29 in the 2004 Form 10-K and is also available through the Investor Information section of our website at www.exxonmobil.com.




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Attachment I

 
 

EXXON MOBIL CORPORATION

FOURTH QUARTER 2005

(millions of dollars, unless noted)

       
       
 

Fourth Quarter

 

Twelve Months

 
 

2005

2004

 

2005

2004

 

Earnings / Earnings Per Share

      
       

Total revenues and other income

99,662

83,365

 

370,998

298,035

 

Total costs and other deductions

81,944

70,100

 

311,566

256,794

 

Income before income taxes

17,718

13,265

 

59,432

41,241

 

Income taxes

7,008

4,845

 

23,302

15,911

 

Net income (U.S. GAAP)

10,710

8,420

 

36,130

25,330

 
       

Net income per common share (dollars)

1.72

1.31

 

5.76

3.91

 
       

Net income per common share

      

- assuming dilution (dollars)

1.71

1.30

 

5.71

3.89

 
       
       

Other Financial Data

      
       

Dividends on common stock

 

 

    

Total

1,795

1,738

 

7,185

6,896

 

Per common share (dollars)

0.29

0.27

 

1.14

1.06

 
       

Millions of common shares outstanding

      

At December 31

 

 

 

6,133

6,401

 

Average - assuming dilution

6,211

6,461

 

6,322

6,519

 
       

Shareholders' equity at December 31

   

111,058

101,756

 

Capital employed at December 31

   

121,181

112,630

 
       

Income taxes

7,008

4,845

 

23,302

15,911

 

Excise taxes

7,829

7,288

 

30,742

27,263

 

All other taxes

10,871

11,419

 

44,571

43,605

 

Total taxes

25,708

23,552

 

98,615

86,779

 
       

ExxonMobil's share of income taxes

      

of equity companies

466

294

 

2,226

1,180

 
       
       



-8-



Attachment II

 
 

EXXON MOBIL CORPORATION

FOURTH QUARTER 2005

(millions of dollars)

       
       
 

Fourth Quarter

 

Twelve Months

 
 

2005

2004

 

2005

2004

 

Net Income (U.S. GAAP)

      

Upstream

      

United States

1,787

1,384

 

6,200

4,948

 

Non-U.S.

5,251

3,503

 

18,149

11,727

 

Downstream

      

United States

1,158

876

 

3,911

2,186

 

Non-U.S.

1,232

1,468

 

4,081

3,520

 

Chemical

      

United States

281

425

 

1,186

1,020

 

Non-U.S.

944

823

 

2,757

2,408

 

Corporate and financing

57

(59)

 

(154)

(479)

 

Corporate total

10,710

8,420

 

36,130

25,330

 
       

Special Items

      

Upstream

      

Non-U.S.

0

0

 

1,620

0

 

Downstream

      

United States

0

0

 

(200)

(550)

 

Non-U.S.

0

0

 

310

0

 

Chemical

      

Non-U.S.

390

0

 

540

0

 

Corporate total

390

0

 

2,270

(550)

 
       

Earnings Excluding Special Items

      

Upstream

      

United States

1,787

1,384

 

6,200

4,948

 

Non-U.S.

5,251

3,503

 

16,529

11,727

 

Downstream

      

United States

1,158

876

 

4,111

2,736

 

Non-U.S.

1,232

1,468

 

3,771

3,520

 

Chemical

      

United States

281

425

 

1,186

1,020

 

Non-U.S.

554

823

 

2,217

2,408

 

Corporate and financing

57

(59)

 

(154)

(479)

 

Corporate total

10,320

8,420

 

33,860

25,880

 
       
       

Cash flow from operations and asset sales (billions of dollars)

   

Net cash provided by operating activities (U.S. GAAP)

10.5

12.4

 

48.2

40.6

 

Sales of subsidiaries, investments and property, plant and equipment

1.4

0.7

 

6.0

2.7

 
       

Cash flow from operations and asset sales

11.9

13.1

 

54.2

43.3

 
       



-9-




Attachment III

 
 

EXXON MOBIL CORPORATION

FOURTH QUARTER 2005

       
       
 

Fourth Quarter

 

Twelve Months

 
 

2005

2004

 

2005

2004

 

Net production of crude oil

      

and natural gas liquids,

      

thousands of barrels daily (kbd)

      

United States

431

534

 

477

557

 

Canada

356

357

 

346

355

 

Europe

539

564

 

546

583

 

Asia Pacific

154

189

 

169

202

 

Africa

795

612

 

666

572

 

Other

354

309

 

319

302

 

Worldwide

2,629

2,565

 

2,523

2,571

 
       

Natural gas production available for sale,

      

millions of cubic feet daily (mcfd)

      

United States

1,620

1,810

 

1,739

1,947

 

Canada

912

951

 

918

972

 

Europe

4,804

5,370

 

4,315

4,614

 

Asia Pacific

1,132

1,382

 

1,268

1,519

 

Other  

1,354

917

 

1,011

812

 

Worldwide

9,822

10,430

 

9,251

9,864

 
       

Oil-equivalent production (koebd)*

4,266

4,303

 

4,065

4,215

 
       
       

*Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels

  
       




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Attachment IV

 
 

EXXON MOBIL CORPORATION

FOURTH QUARTER 2005

       
       
 

Fourth Quarter

 

Twelve Months

 
 

2005

2004

 

2005

2004

 

Petroleum product sales (kbd)

      

United States

2,900

2,993

 

2,915

2,872

 

Canada

641

643

 

620

615

 

Europe

2,155

2,167

 

2,115

2,139

 

Asia Pacific

1,837

1,751

 

1,786

1,689

 

Other

789

892

 

821

895

 

Worldwide

8,322

8,446

 

8,257

8,210

 
       

Gasolines, naphthas

3,274

3,380

 

3,274

3,301

 

Heating oils, kerosene, diesel

2,632

2,609

 

2,560

2,517

 

Aviation fuels

649

722

 

700

698

 

Heavy fuels

754

693

 

711

659

 

Specialty products

1,013

1,042

 

1,012

1,035

 

Total

8,322

8,446

 

8,257

8,210

 
       

Refinery throughput (kbd)

      

United States

1,669

1,881

 

1,794

1,850

 

Canada

479

470

 

466

468

 

Europe

1,717

1,701

 

1,672

1,663

 

Asia Pacific

1,484

1,491

 

1,490

1,423

 

Other

303

309

 

301

309

 

Worldwide

5,652

5,852

 

5,723

5,713

 
       

Chemical prime product sales,

      

thousands of metric tons (kt)

      

United States

2,228

2,871

 

10,369

11,521

 

Non-U.S.

4,064

4,078

 

16,408

16,267

 

Worldwide

6,292

6,949

 

26,777

27,788

 
       
       



-11-



Attachment V

 
 

EXXON MOBIL CORPORATION

FOURTH QUARTER 2005

(millions of dollars)

       
       
 

Fourth Quarter

 

Twelve Months

 
 

2005

2004

 

2005

2004

 

Capital and Exploration Expenditures

      
       

Upstream

      

United States

542

520

 

2,142

1,922

 

Non-U.S.

3,852

2,774

 

12,328

9,793

 

Total

4,394

3,294

 

14,470

11,715

 

Downstream

      

United States

213

175

 

753

775

 

Non-U.S.

535

496

 

1,742

1,630

 

Total

748

671

 

2,495

2,405

 

Chemical

      

United States

61

79

 

243

262

 

Non-U.S.

108

177

 

411

428

 

Total

169

256

 

654

690

 

 

      

Other

20

12

 

80

75

 
       

Worldwide

5,331

4,233

 

17,699

14,885

 
       
       

Exploration expenses charged to income

      

included above

      

Consolidated affiliates

      

United States

54

41

 

157

192

 

Non-U.S.

278

268

 

795

891

 

Equity companies - ExxonMobil share

      

United States

0

9

 

0

9

 

Non-U.S.

0

16

 

17

27

 

Worldwide

332

334

 

969

1,119

 
       
       



-12-



Attachment VI

 
 

EXXON MOBIL CORPORATION

NET INCOME

    
    
  

$ Millions

$ Per Common Share

    
 

2001

  
 

First Quarter

5,000

0.72

 

Second Quarter

4,460

0.66

 

Third Quarter

3,180

0.46

 

Fourth Quarter

2,680

0.39

 

Year

15,320

2.23

  



 

2002



 

First Quarter

2,090

0.30

 

Second Quarter

2,640

0.40

 

Third Quarter

2,640

0.39

 

Fourth Quarter

4,090

0.60

 

Year

11,460

1.69

  



 

2003



 

First Quarter

7,040

1.05

 

Second Quarter

4,170

0.63

 

Third Quarter

3,650

0.55

 

Fourth Quarter

6,650

1.01

 

Year

21,510

3.24

  



 

2004



 

First Quarter

5,440

0.83

 

Second Quarter

5,790

0.89

 

Third Quarter

5,680

0.88

 

Fourth Quarter

8,420

1.31

 

Year

25,330

3.91

  



 

2005



 

First Quarter

7,860

1.23

 

Second Quarter

7,640

1.21

 

Third Quarter

9,920

1.60

 

Fourth Quarter

10,710

1.72

 

Year

36,130

5.76

  



  





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