USA: ExxonMobil 1Q Profit Drops to USD 9.5 bln

ExxonMobil, one of the world’s largest publicly traded international oil and gas companies today reported an 11% decrease in its first quarter 2012 earnings. The company revealed the earnings of USD 9.5 billion, a drop of USD 1.2 billion when compared to the same period a year ago when it earned USD 10.7 billion.

Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation commented: “First quarter results reflect our ongoing focus on developing and delivering energy needed to support job creation and economic growth. Despite continuing economic uncertainty, we are progressing our robust investment plans to meet the energy demands of the future. Capital and exploration expenditures were $8.8 billion as we continue with plans to invest about $37 billion per year over the next five years. We continued to generate strong cash flow from operations and asset sales with $21.8 billion in the quarter.

Capital and exploration expenditures were $8.8 billion, up 13% from the first quarter of 2011. Oil-equivalent production decreased over 5% from the first quarter of 2011. Excluding the impact of higher prices on entitlement volumes, OPEC quota effects and divestments, production was down 1%. Cash flow from operations and asset sales was $21.8 billion, including proceeds associated with asset sales of $2.5 billion.

Last week ExxonMobil and Rosneft announced the signing of agreements to progress a long-term Strategic Cooperation Agreement to jointly explore for and develop oil and natural gas in Russia, and to share technology and expertise. The initial cost of preliminary exploration is estimated at over US $3.2 billion. Additionally, Rosneft will take equity in exploration and development projects in the United States and Canada.

In Romania, ExxonMobil’s affiliate drilled a successful deepwater new play test on the Neptun block in the Black Sea with the Deepwater Champion drillship and has additional 3D seismic data acquisition planned to support future drilling opportunities on the block.

ExxonMobil participated in a successful exploration well offshore Tanzania which discovered approximately 5 trillion cubic feet of recoverable gas in a high quality reservoir. A second exploration well is planned to test another prospect on the block.

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Offshore Energy Today Staff, April 26, 2012