Exxon Profit Down on Weak Refining Margins

ExxonMobil today announced that for the third quarter of 2013 its earnings of $7,870 million decreased $1,700 million or 18% from the third quarter of 2012.

Earnings per share (assuming dilution) were $1.79, a decrease of 14% from the third quarter of 2012. Capital and exploration expenditures were $10.5 billion, up 15% from the third quarter of 2012, in line with anticipated spending plans. Oil-equivalent production increased 1.5% from the third quarter of 2012. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production increased 2.7%, with liquids volumes up 5.3%.

Cash flow from operations and asset sales was $13.6 billion, including proceeds associated with asset sales of $0.2 billion.

Share purchases to reduce shares outstanding were $3 billion. Dividends per share of $0.63 increased 11% compared to the third quarter of 2012.

The Esso Australia Pty Ltd operated Kipper Tuna Turrum project commenced natural gas production from the Tuna field and oil production from the Turrum field. The project is the largest domestic oil and gas development on Australia’s eastern seaboard and will help secure Australia’s energy future.

As announced on August 8, 2013, Imperial Oil Limited and ExxonMobil Canada Ltd. have acquired ConocoPhillips’ interest in the Clyden oil sands lease, approximately 95 miles south of Fort McMurray, Alberta. The Clyden lease contains 226,000 gross acres and is a high-quality addition to Imperial’s portfolio of oil sands in-situ opportunities.

Upstream earnings were $6,713 million in the third quarter of 2013, up $740 million from the third quarter of 2012. Higher liquids and natural gas realizations increased earnings by $440 million. Production volume and mix effects increased earnings by $20 million.

All other items, including favorable tax and foreign exchange impacts, partly offset by higher operating expenses, increased earnings by $280 million.

On an oil-equivalent basis, production increased 1.5% from the third quarter of 2012. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production increased 2.7%.

Liquids production totaled 2,199 kbd (thousands of barrels per day), up 83 kbd from the third quarter of 2012. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 5.3%, as lower downtime and project ramp-up in Canada and Nigeria were partially offset by field decline.

Third quarter natural gas production was 10,914 mcfd (millions of cubic feet per day), down 147 mcfd from 2012. Excluding the impacts of entitlement volumes and divestments, natural gas production was down 0.3%, as field decline was mostly offset by lower downtime and project ramp-up.

Earnings from U.S. Upstream operations were $1,050 million, $417 million higher than the third quarter of 2012. Non-U.S. Upstream earnings were $5,663 million, up $323 million from the prior year.

Downstream earnings were $592 million, down $2,598 million from the third quarter of 2012. Weaker margins, mainly in refining, decreased earnings by $2.4 billion. Volume and mix effects increased earnings by $150 million. All other items, including lower gains on asset sales and foreign exchange impacts, decreased earnings by $380 million. Petroleum product sales of 6,031 kbd were 74 kbd lower than last year’s
third quarter reflecting divestment-related impacts.

Earnings from the U.S. Downstream were $315 million, down $1,126 million from the third quarter of 2012. Non-U.S. Downstream earnings of $277 million were $1,472 million lower than last year.
Chemical earnings of $1,025 million were $235 million higher than the third quarter of 2012 due primarily to higher commodity margins. Third quarter prime product sales of 6,245 kt (thousands of metric tons) were 298 kt higher than last year’s third quarter.
Corporate and financing expenses were $460 million for the third quarter of 2013, up $77 million from the third quarter of 2012, reflecting unfavorable tax impacts.
During the third quarter of 2013, Exxon Mobil Corporation purchased 34 million shares of its common stock for the treasury to reduce the number of shares outstanding at a cost of $3.0 billion. Share purchases to reduce shares outstanding are currently anticipated to equal $3 billion in the fourth quarter of 2013. 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.

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October 31, 2013