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ExxonMobil Earns $20.8 Billion in 2018; $6 Billion in Fourth Quarter


  • Full-year cash flow from operating activities of $36 billion, highest since 2014
  • Tenth discovery offshore Guyana, increasing Stabroek resource estimate to more than 5 billion barrels
  • Fourth quarter 2018 liquids production up 4 percent from prior-year quarter driven by Permian growth
Third

Fourth Quarter

Quarter Twelve Months

2018

2017

%

2018

%

2018

2017

%

Earnings Summary
(Dollars in millions, except per share data)
Earnings (U.S. GAAP) 6,000 8,380 -28 6,240 -4 20,840 19,710 +6
U.S. Tax Reform 20 5,942 271 291 5,942
Asset Impairments (429 ) (1,294 ) (18 ) (489 ) (1,521 )
Earnings Excluding U.S. Tax
Reform and Impairments 6,409 3,732 +72 5,987 +7 21,038 15,289 +38
Earnings Per Common Share
Assuming Dilution 1.41 1.97 -28 1.46 -3 4.88 4.63 +5
Capital and Exploration
Expenditures 7,843 8,999 -13 6,586 +19 25,923 23,080 +12
Fourth Quarter 2018 Business Highlights
Upstream
Crude prices weakened in the fourth quarter, while natural gas prices strengthened with higher LNG prices and increased seasonal demand.
Natural gas volumes were supported by stronger seasonal gas demand in Europe.
Permian unconventional production continued to ramp up in the fourth quarter, with production up more than 90 percent from the same period last year.
Downstream
Industry fuels margins weakened during the quarter due to lower seasonal gasoline demand and increased supply.
The company captured benefits from North American crude differentials with its integrated logistics and manufacturing capabilities.
Overall reliability remained strong during a quarter with higher levels of scheduled maintenance activity.

Chemical

Chemical margins weakened during the quarter with lengthening supply from recent capacity additions.
Sales growth from investments resulted in the highest annual volumes in over ten years.
Turnaround activities were completed at the Singapore chemical plant during the fourth quarter.
Strengthening the Portfolio
ExxonMobil made its tenth discovery offshore Guyana and increased its estimate of the discovered recoverable resource for the Stabroek Block to more than 5 billion oil-equivalent barrels.
ExxonMobil subsidiary Esso Italiana completed its sale of the Augusta refinery, three fuel terminals in Augusta, Palermo and Naples, and associated pipelines to Sonatrach Raffineria Italiana S.r.l. ExxonMobil will continue to serve the Italian market, where it has operated for more than 125 years, with high-performance products, including Esso fuels and Mobil lubricants.
The company generated full-year cash proceeds from asset sales of $4.1 billion, slightly above the previous 5-year average of $3.3 billion.
Investing for Growth
ExxonMobil made a final investment decision to develop the West Barracouta gas field in Bass Strait to bring new gas supplies to the Australian domestic market. The project, located in the VIC/L1 Block offshore Victoria, is part of the company’s continuing investment in the Gippsland Basin and will be tied back to the existing Barracouta infrastructure offshore in Bass Strait.
Mozambique Area 4 co-venture participants, including ExxonMobil, secured liquefied natural gas (LNG) offtake commitments from the partners’ affiliated buyer entities, a key milestone enabling a rapid move toward a final investment decision in 2019 on the first phase of the Rovuma LNG project. Those commitments are subject to the conclusion of fully-termed agreements and the approval of the government of Mozambique.
The company commenced operations of a new coker unit at its Antwerp refinery in Belgium to convert heavy, higher-sulfur residual oils into high-value transportation fuels such as marine gasoil and diesel. The new 50,000 barrel-per-day unit expands the refinery’s capacity to meet demand for cleaner transportation fuels throughout northwest Europe. The company’s investment in the new coker will also help meet anticipated demand for lower-sulfur fuel oil to comply with new standards to be implemented by the International Maritime Organization in 2020.
Advancing Innovative Technologies and Products
ExxonMobil started up its advanced hydrocracker expansion project at the Rotterdam refinery in the Netherlands. The new unit uses proprietary catalyst in a unique refining configuration to upgrade lower-value vacuum gas oil into higher value EHC™ Group II base stocks and ultra-low sulfur diesel.
ExxonMobil has signed a partnership agreement with IBM to advance the potential use of quantum computing in developing next-generation energy and manufacturing technologies. As part of the agreement, ExxonMobil becomes the first energy company to join the IBM Q Network, a worldwide community of Fortune 500 companies, startups, academic institutions and national research labs working to advance quantum computing and explore practical applications for science and business.
Exxon Mobil Corporation
Fourth Quarter 2018
(millions of dollars)
Third
Fourth Quarter Quarter Twelve Months

2018

2017

2018

2018

2017

Earnings (U.S. GAAP)
Upstream
United States 265 7,061 606 1,739 6,622
Non-U.S. 3,048 1,291 3,623 12,340 6,733
Downstream
United States 987 918 961 2,962 1,948
Non-U.S. 1,717 646 681 3,048 3,649
Chemical
United States 282 777 404 1,642 2,190
Non-U.S. 455 493 309 1,709 2,328
Corporate and financing (754 ) (2,806 ) (344 ) (2,600 ) (3,760 )
Net income attributable to ExxonMobil 6,000 8,380 6,240 20,840 19,710
U.S. Tax Reform
Upstream
United States 7,602 7,602
Non-U.S. (480 ) 271 271 (480 )
Downstream
United States 618 618
Chemical
United States 335 335
Corporate and financing 20 (2,133 ) 20 (2,133 )
Total U.S. Tax Reform 20 5,942 271 291 5,942
Asset Impairments
Upstream
United States (284 ) (481 ) (297 ) (521 )
Non-U.S. (113 ) (807 ) (142 ) (983 )
Downstream
United States (12 ) (6 ) (12 ) (6 )
Non-U.S. (13 ) (18 ) (31 ) (11 )
Chemical
Non-U.S. (7 ) (7 )
Total Asset Impairments (429 ) (1,294 ) (18 ) (489 ) (1,521 )
Earnings Excluding U.S. Tax Reform and Impairments
Upstream
United States 549 (60 ) 606 2,036 (459 )
Non-U.S. 3,161 2,578 3,352 12,211 8,196
Downstream
United States 999 306 961 2,974 1,336
Non-U.S. 1,730 646 699 3,079 3,660
Chemical
United States 282 442 404 1,642 1,855
Non-U.S. 462 493 309 1,716 2,328
Corporate and financing (774 ) (673 ) (344 ) (2,620 ) (1,627 )
Earnings excluding U.S. Tax Reform and Impairments 6,409 3,732 5,987 21,038 15,289

Earnings and Volume Summary

Millions of Dollars 4Q 2018 4Q 2017
(unless noted) Adjusted 1 Adjusted 1 Change Comments
Upstream
U.S. 549 (60) +609 Higher natural gas prices and liquids volume growth
Non-U.S. 3,161 2,578 +583 Higher natural gas prices, favorable tax and foreign exchange impacts, partly offset by lower liquids prices
Total 3,710 2,518 +1,192 Prices +660, volumes +180, foreign exchange +80, other +270
Production (koebd) 4,010 3,991 +19 Liquids +97 kbd: growth, partly offset by decline, lower entitlements and divestments

Gas -467 mcfd: decline largely in U.S. aligned with value focus, lower demand, lower entitlements and divestments, partly offset by unconventional growth

Downstream
U.S. 999 306 +693 Lower downtime/maintenance, higher margins capturing crude differentials, improved yield/sales mix and favorable tax impacts
Non-U.S. 1,730 646 +1,084 Higher divestment gains including sale of Augusta refinery / Germany Retail conversion to branded wholesaler (+888), higher margins and improved yield/sales mix, partly offset by higher downtime/maintenance
Total 2,729 952 +1,777 Divestment gains +680, margins +550, yield/sales mix +200, downtime/maintenance +130, other +220
Petroleum Product Sales (kbd) 5,495 5,624 -129
Chemical
U.S. 282 442 -160 Weaker margins
Non-U.S. 462 493 -31 Weaker margins, higher growth-related expenses and higher downtime/maintenance, partly offset by favorable tax item (+212) and higher sales volumes
Total 744 935 -191 Margins -350, downtime/maintenance -90, tax item +210, sales +100, other -60
Prime Product Sales (kt) 6,672 6,782 -110 Downtime/maintenance, partly offset by growth-related volumes

Corporate and financing

(774) (673) -101 Lower U.S. tax rate
1Earnings excluding U.S. Tax Reform and Impairments

Earnings and Volume Summary

Millions of Dollars 4Q 2018 3Q 2018
(unless noted) Adjusted 1 Adjusted 1 Change Comments
Upstream
U.S. 549 606 -57 Lower liquids prices and higher expenses, partly offset by higher liquids volumes and stronger natural gas prices
Non-U.S. 3,161 3,352 -191 Lower liquids prices, partly offset by higher volumes, stronger natural gas prices and favorable foreign exchange impacts
Total 3,710 3,958 -248 Prices -1,110, volumes +660, foreign exchange +100, other +100
Production (koebd) 4,010 3,786 +224 Liquids +62 kbd: growth and lower unscheduled downtime

Gas +973 mcfd: higher seasonal demand and entitlements

Downstream
U.S. 999 961 +38 Higher margins capturing crude differentials and improved yield/sales mix, partly offset by higher downtime/maintenance
Non-U.S. 1,730 699 +1,031 Higher divestment gains including sale of Augusta refinery / Germany Retail conversion to branded wholesaler (+888) and higher margins, partly offset by higher downtime/maintenance
Total 2,729 1,660 +1,069 Divestment gains +870, margins +500, yield/sales mix +70, downtime/maintenance -460, other +90
Petroleum Product Sales (kbd) 5,495 5,616 -121
Chemical
U.S. 282 404 -122 Weaker margins
Non-U.S. 462 309 +153 Favorable tax item (+212), partly offset by growth-related expenses
Total 744 713 +31 Tax item +210, margins -110, other -70
Prime Product Sales (kt) 6,672 6,677 -5
Corporate and financing (774) (344) -430 Mainly absence of favorable one-time tax item
1Earnings excluding U.S. Tax Reform and Impairments

Earnings and Volume Summary

Millions of Dollars FY 2018 FY 2017
(unless noted) Adjusted 1 Adjusted 1 Change Comments
Upstream
U.S. 2,036 (459) +2,495 Higher liquids prices and liquids volume growth and favorable mix, partly offset by higher growth-related expenses
Non-U.S. 12,211 8,196 +4,015 Higher prices and divestment gains / one-time items, partly offset by lower volumes and higher expenses largely from increased maintenance
Total 14,247 7,737 +6,510 Prices +7,040, divestment gains / one-time items +780, maintenance / growth-related expenses -970, volumes -240, other -100
Production (koebd) 3,833 3,985 -152 Liquids -17 kbd: growth in North America, more than offset by decline, lower entitlements and divestments

Gas -806 mcfd: decline largely in U.S. aligned with value focus, lower entitlements, divestments, and higher downtime

Downstream
U.S. 2,974 1,336 +1,638 Higher margins capturing crude differentials, favorable tax impacts, lower downtime/maintenance and favorable yield/sales mix
Non-U.S. 3,079 3,660 -581 Higher downtime/maintenance, lower margins and unfavorable foreign exchange impacts, partly offset by higher divestment gains and favorable yield/sales mix
Total 6,053 4,996 +1,057 Margins +660, divestment gains +490, yield/sales mix +260, downtime/maintenance -530, foreign exchange -290, other +470
Petroleum Product Sales (kbd) 5,512 5,530 -18
Chemical
U.S. 1,642 1,855 -213 Volume growth, more than offset by higher growth-related expenses and weaker margins
Non-U.S. 1,716 2,328 -612 Weaker margins, higher growth-related expenses and higher downtime/maintenance, partly offset by volume growth, favorable tax item (+212) and favorable foreign exchange impacts
Total 3,358 4,183 -825 Margins -910, downtime/maintenance -150, sales +320, tax item +210, foreign exchange +140, other -440
Prime Product Sales (kt) 26,869 25,420 +1,449 Growth from new assets and stronger demand
Corporate and financing (2,620) (1,627) -993 Higher pension and financing related costs, lower U.S. tax rate, and lower net favorable tax items
1Earnings excluding U.S. Tax Reform and Impairments

Cash Flow from Operations and Asset Sales

Millions of Dollars 4Q
2018 Comments
Net income including noncontrolling interests 6,206 Including $206 million for noncontrolling interests
Depreciation 5,028
Changes in working capital (1,331 ) Mainly inventory build and timing of tax payments
Other (1,296 ) Including adjustment for gains on asset sales

Cash Flow from Operating Activities (U.S. GAAP)

8,607
Asset sales 884 Including Augusta

Cash Flow from Operations and Asset Sales

9,491
Millions of Dollars FY
2018 Comments
Net income including noncontrolling interests 21,421 Including $581 million for noncontrolling interests
Depreciation 18,745
Changes in working capital (1,356 ) Inventory build, partly offset by favorable payables
Other (2,796 ) Including adjustment for gains on asset sales

Cash Flow from Operating Activities (U.S. GAAP)

36,014
Asset sales 4,123 Including Germany Retail, Augusta, Scarborough

Cash Flow from Operations and Asset Sales

40,137
Estimated Key Financial and Operating Data
Attachment I
Exxon Mobil Corporation
Fourth Quarter 2018
(millions of dollars, unless noted)
Third
Fourth Quarter Quarter Twelve Months

2018

2017

2018

2018

2017

Earnings / Earnings Per Share
Total revenues and other income 71,895 66,515 76,605 290,212 244,363
Total costs and other deductions 63,774 63,498 67,525 259,259 225,689
Income before income taxes 8,121 3,017 9,080 30,953 18,674
Income taxes 1,915 (5,392 ) 2,634 9,532 (1,174 )
Net income including noncontrolling interests 6,206 8,409 6,446 21,421 19,848
Net income attributable to noncontrolling interests 206 29 206 581 138
Net income attributable to ExxonMobil (U.S. GAAP) 6,000 8,380 6,240 20,840 19,710
Earnings per common share (dollars) 1.41 1.97 1.46 4.88 4.63
Earnings per common share
– assuming dilution (dollars) 1.41 1.97 1.46 4.88 4.63
Exploration expenses, including dry holes 555 703 292 1,466 1,790
Other Financial Data
Dividends on common stock
Total 3,502 3,289 3,503 13,798 13,001
Per common share (dollars) 0.82 0.77 0.82 3.23 3.06
Millions of common shares outstanding
At period end 4,237 4,239
Average – assuming dilution 4,270 4,270 4,271 4,270 4,256
ExxonMobil share of equity at period end 191,794 187,688
ExxonMobil share of capital employed at period end 232,280 232,467
Income taxes 1,915 (5,392 ) 2,634 9,532 (1,174 )
Total other taxes and duties 8,473 8,583 8,939 35,230 32,459
Total taxes 10,388 3,191 11,573 44,762 31,285
Sales-based taxes 5,444 5,245 5,518 21,750 19,725
Total taxes including sales-based taxes 15,832 8,436 17,091 66,512 51,010

ExxonMobil share of income taxes of equity companies

992 500 755 3,142 2,228
Attachment II
Exxon Mobil Corporation
Fourth Quarter 2018
Third
Fourth Quarter Quarter Twelve Months

2018

2017

2018

2018

2017

Net production of crude oil, natural gas liquids, bitumen and synthetic oil, thousand barrels per day (kbd)

United States 583 525 555 551 514
Canada / Other Americas 474 426 454 438 412
Europe 122 155 127 132 182
Africa 376 403 387 387 423
Asia 745 690 706 711 698
Australia / Oceania 48 52 57 47 54
Worldwide 2,348 2,251 2,286 2,266 2,283

Natural gas production available for sale, million cubic feet per day (mcfd)

United States 2,581 2,753 2,549 2,574 2,936
Canada / Other Americas 247 240 224 227 218
Europe 1,943 2,266 1,004 1,653 1,948
Africa 16 6 16 13 5
Asia 3,804 3,855 3,685 3,613 3,794
Australia / Oceania 1,383 1,321 1,523 1,325 1,310
Worldwide 9,974 10,441 9,001 9,405 10,211
Oil-equivalent production (koebd)1 4,010 3,991 3,786 3,833 3,985
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels.
Attachment III
Exxon Mobil Corporation
Fourth Quarter 2018
Third
Fourth Quarter Quarter Twelve Months

2018

2017

2018

2018

2017

Refinery throughput (kbd)
United States 1,661 1,379 1,644 1,588 1,508
Canada 408 391 388 392 383
Europe 1,366 1,509 1,446 1,422 1,510
Asia Pacific 670 728 720 706 690
Other 193 200 194 164 200
Worldwide 4,298 4,207 4,392 4,272 4,291
Petroleum product sales (kbd)
United States 2,230 2,209 2,267 2,210 2,190
Canada 516 501 527 510 499
Europe 1,474 1,589 1,582 1,556 1,597
Asia Pacific 825 819 824 815 757
Other 450 506 416 421 487
Worldwide 5,495 5,624 5,616 5,512 5,530
Gasolines, naphthas 2,183 2,353 2,255 2,217 2,262
Heating oils, kerosene, diesel 1,915 1,878 1,837 1,840 1,850
Aviation fuels 376 393 430 402 382
Heavy fuels 387 370 411 395 371
Specialty products 634 630 683 658 665
Worldwide 5,495 5,624 5,616 5,512 5,530

Chemical prime product sales, thousand metric tons (kt)

United States 2,577 2,399 2,445 9,824 9,307
Non-U.S. 4,095 4,383 4,232 17,045 16,113
Worldwide 6,672 6,782 6,677 26,869 25,420
Attachment IV
Exxon Mobil Corporation
Fourth Quarter 2018
(millions of dollars)
Third
Fourth Quarter Quarter Twelve Months

2018

2017

2018

2018

2017

Capital and Exploration Expenditures
Upstream
United States 2,630 1,158 2,040 7,670 3,716
Non-U.S. 3,620 6,457 3,290 12,524 12,979
Total 6,250 7,615 5,330 20,194 16,695
Downstream
United States 325 264 297 1,186 823
Non-U.S. 541 518 422 2,243 1,701
Total 866 782 719 3,429 2,524
Chemical
United States 579 389 411 1,747 1,583
Non-U.S. 132 167 115 488 2,188
Total 711 556 526 2,235 3,771
Other 16 46 11 65 90
Worldwide 7,843 8,999 6,586 25,923 23,080
Cash flow from operations and asset sales

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

8,607 7,411 11,108 36,014 30,066
Proceeds associated with asset sales 884 1,408 1,491 4,123 3,103
Cash flow from operations and asset sales 9,491 8,819 12,599 40,137 33,169
Attachment V
Exxon Mobil Corporation
Earnings

$ Millions

$ Per Common Share 1

2014

First Quarter 9,100 2.10
Second Quarter 8,780 2.05
Third Quarter 8,070 1.89
Fourth Quarter 6,570 1.56
Year 32,520 7.60

2015

First Quarter 4,940 1.17
Second Quarter 4,190 1.00
Third Quarter 4,240 1.01
Fourth Quarter 2,780 0.67
Year 16,150 3.85

2016

First Quarter 1,810 0.43
Second Quarter 1,700 0.41
Third Quarter 2,650 0.63
Fourth Quarter 1,680 0.41
Year 7,840 1.88

2017

First Quarter 4,010 0.95
Second Quarter 3,350 0.78
Third Quarter 3,970 0.93
Fourth Quarter 8,380 1.97
Year 19,710 4.63

2018

First Quarter 4,650 1.09
Second Quarter 3,950 0.92
Third Quarter 6,240 1.46
Fourth Quarter 6,000 1.41
Year 20,840 4.88
1 Computed using the average number of shares outstanding during each period.

Contact:

ExxonMobil
Media Relations, 972-940-6007


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