IRVING, Texas, Jan. 25 /PRNewswire/ -- The following was issued today by
Exxon Mobil Corporation (NYSE: XOM):
Fourth Quarter Twelve Months
1999 1998 1999 1998
Net Income
$ Million 2,284 1,378 7,910 8,074
$ Per Common Share
Assuming Dilution 0.65 0.39 2.25 2.28
Net Income Excluding
Merger Expenses/Special Items
$ Million 2,709 2,029 8,380 8,806
$ Per Common Share
Assuming Dilution 0.77 0.58 2.38 2.49
Revenue - $ Million 55,961 43,140 186,906 169,642
Capital & Exploration
Expenditures - $ Million 3,404 4,663 13,254 15,535
Exxon Mobil Corporation (NYSE: XOM) today reported fourth quarter 1999 net
income excluding merger expenses and special items of $2,709 million ($0.77
per share); net income was $2,284 million ($0.65 per share) after merger
expenses of $425 million. Net income excluding merger expenses and special
items increased $680 million (34%). Net income increased $906 million (66%).
Revenue for the fourth quarter of 1999 totaled $55,961 million compared
to $43,140 million in 1998. Capital and exploration expenditures of
$3,404 million in the fourth quarter of 1999 compared to $4,663 million in the
prior year's quarter.
Full year 1999 net income excluding merger expenses and special items was
$8,380 million or $2.38 on a per share basis, compared to $8,806 million or
$2.49 per share in 1998. Full year 1999 net income was $7,910 million, down
2% from $8,074 million in 1998. On a per share basis, net income was
$2.25 compared to $2.28 in the prior year. Net income in 1999 included
$470 million of special items, primarily merger expenses that were recognized
in the fourth quarter. Net income in 1998 included $662 million of special
items and a $70 million charge related to an accounting change. Revenue for
1999 totaled $186,906 million compared to $169,642 million in 1998. Full
year capital and exploration expenditures of $13,254 million compared to
$15,535 million in 1998.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"ExxonMobil's fourth quarter 1999 net income of $2,709 million excluding
merger expenses and special items was up $680 million or 34% from the prior
year; net income was up $906 million or 66% to $2,284 million. Upstream
earnings were almost $2.3 billion and represented a record quarter for
combined Exxon and Mobil operations. Upstream results benefited from the
continued increase in crude oil prices, which were up over $12 per barrel from
the fourth quarter of 1998, along with a 5% increase in liquids production.
Higher North American natural gas prices and lower exploration expenses also
improved upstream earnings.
"As crude prices increased rapidly during the quarter, downstream earnings
decreased substantially, reflecting the inability to raise product prices in
line with rising crude prices. Downstream margins in all markets were
depressed. As a result, fourth quarter downstream earnings were slightly
below break-even.
"Chemicals fourth quarter earnings improved about 50% from the prior year
as a result of record quarterly sales volumes, improved product prices and
lower operating expenses. Earnings from other operations also improved over
50% due to higher copper prices, record copper production and lower operating
expenses.
"During the fourth quarter, the merger of Exxon and Mobil was successfully
completed and merger activities were well underway at year-end. Fourth
quarter results included charges for merger closing costs and implementation
expenses and charges related to the initial 1,750 employee separations.
"ExxonMobil's 1999 net income excluding merger expenses and special items
was $8,380 million, down $426 million or 5% from 1998. Net income declined
$164 million or 2% to $7,910 million. Upstream earnings improved over
$2 billion or 55%. The improvement was driven by higher crude prices, which
on average were up over $5 per barrel from 1998's depressed levels. Record
chemicals, coal and copper volumes and reduced expenses in every operating
segment also benefited earnings. However, the steep rise in crude prices
across the year depressed refining and marketing margins in all geographic
areas and reduced downstream earnings by $2.5 billion. Weaker chemicals
margins and lower coal prices also negatively affected total results.
"ExxonMobil's full year 1999 capital and exploration expenditures were
$13,254 million reflecting a continuation of the Corporation's active
investment program. Expenditures were below 1998 levels, primarily due to the
completion of several major upstream development projects."
Additional comments on earnings for the major operating segments follow:
Fourth Quarter 1999 vs. Fourth Quarter 1998
Exploration and production earnings benefited from rising crude oil
prices, which averaged about $12 per barrel more than the fourth quarter of
1998. Natural gas prices were about 25% higher in North America. Higher
liquids volumes related to the start-up of new operations and reduced
exploration expenses also benefited earnings.
Liquids production increased 117 kbd (thousand barrels per day) or 5% to
2,579 kbd, driven by the start-up of production from the Balder and Jotun
developments in Norway, the Cerro Negro development in Venezuela, and new
developments in the Gulf of Mexico. Australian production was also higher
reflecting the full recovery of production following the 1998 fourth quarter
outage at the Longford processing plant. Fourth quarter natural gas
production of 11,851 mcfd (million cubic feet per day) was up 362 mcfd or 3%
from the prior year, primarily due to higher European sales.
Excluding special items, earnings from U.S. exploration and production
were $740 million, an increase of $492 million from the prior year. Outside
the U.S., earnings from exploration and production were $1,555 million, an
increase of $924 million from the fourth quarter of 1998.
Petroleum product sales were 8,827 kbd compared to 9,066 kbd in the prior
year's fourth quarter. Downstream earnings declined as petroleum product
prices were not able to keep up with the steep increase in crude costs during
the quarter. Downstream earnings were also adversely affected by unfavorable
foreign exchange and inventory effects.
Excluding special items, U.S. refining and marketing results were a loss
of $48 million, down $312 million from the prior year. Refining and marketing
operations outside the U.S. earned $29 million, a decrease of $652 million
from 1998.
Excluding special items, chemicals earnings were $392 million compared
with $267 million in the same quarter a year ago. Margins improved due to
increased product prices. Prime product sales volumes of 6,458 kt (thousand
metric tons) established a quarterly record and were 9% higher than the same
period a year ago. Chemicals operating expenses were reduced from the prior
year.
Earnings from other operations, including coal, minerals and power,
totaled $136 million, compared to $90 million in the fourth quarter of 1998.
Earnings improved on higher copper prices and volumes and continued reductions
in operating expenses.
Excluding special items, corporate and financing expenses of $95 million
compared with $152 million in the fourth quarter of 1998.
Fourth quarter net income included merger expenses of $425 million,
consisting of merger closing costs, implementation expenses and employee
separations. In the fourth quarter of 1999, 1,750 employees were separated,
including 1,400 employees in the U.S. Additional severance and implementation
expenses will be recognized during 2000 as the restructuring program
progresses.
During the fourth quarter of 1999, Exxon purchased 0.9 million shares of
its common stock for the treasury at a cost of $69 million, representing
purchases to offset shares issued in conjunction with the Company's benefit
plans and programs. Consistent with pooling accounting requirements, this
repurchase program was suspended effective with the close of the ExxonMobil
merger on November 30, 1999.
Full Year 1999 vs. Full Year 1998
Net income was $7,910 million for 1999, a decrease of 2% from the
$8,074 million earned in 1998. Net income in 1999 included $470 million of
merger expenses and special items. Net income in 1998 included $662 million
of special items and a $70 million charge related to an accounting change.
Excluding merger expenses and special items, net income for 1999 declined 5%
to $8,380 million or $2.38 per share, compared to $8,806 million or $2.49 per
share in 1998.
Exploration and production earnings increased substantially due to the
improvement in crude prices. Crude oil realizations were up over $5 per
barrel versus 1998. Average U.S. natural gas realizations were up 9% from the
prior year, while European gas realizations, which are tied to petroleum
product prices on a lagged basis, were about 17% lower. Liquids production of
2,517 kbd was up 1% from 2,502 kbd in 1998, as production from new
developments in the North Sea, the Gulf of Mexico, West Africa and the Caspian
offset natural field declines in North America and lower liftings in Indonesia
and Malaysia. Worldwide natural gas production of 10,308 mcfd compared to
10,617 mcfd in 1998. Exploration and producing expenses were reduced from
prior year levels.
Excluding special items, earnings from U.S. exploration and production
operations were $1,842 million, an increase of $807 million from 1998.
Outside the U.S., exploration and production earnings were $3,925 million, up
$1,247 million from the prior year.
Petroleum product sales were 8,879 kbd compared to 8,873 kbd in 1998.
Excluding special items, earnings from U.S. refining and marketing operations
were $577 million, down $614 million from 1998, primarily reflecting the
inability to pass through higher crude costs to the marketplace. Inventory
effects were also unfavorable for the year. Higher volumes and lower
turnaround expenses benefited earnings. Outside the U.S., refining and
marketing earnings decreased $1,917 million to $770 million, driven by
escalating crude costs and much lower margins, higher planned maintenance
activities and unfavorable foreign exchange and inventory effects. Reduced
operating expenses provided some offset.
Excluding special items, chemicals earnings totaled $1,354 million, down
$49 million or 3% from 1998. Industry margins declined due to lower product
prices and higher feedstock costs. Prime product sales volumes of 24,485 kt
were a record and increased 4% over 1998. Chemicals earnings also benefited
from lower operating expenses.
Earnings from other operations totaled $426 million, an increase of
$42 million from 1998, reflecting record copper and coal production, lower
operating expenses and favorable foreign exchange effects, partly offset by
depressed coal prices. Excluding special items, corporate and financing
expenses decreased $58 million to $514 million, reflecting lower tax-related
charges. During the period, the company's operating segments continued to
benefit from the impact of lower effective tax rates and the favorable
resolution of tax-related issues.
During the year, Exxon purchased 8.3 million shares of its common stock
for the treasury at a cost of $648 million, representing purchases to offset
shares issued in conjunction with the Company's benefit plans and programs.
Consistent with pooling accounting requirements, this repurchase program was
suspended effective with the close of the ExxonMobil merger on
November 30, 1999.
Estimates of key financial and operating data follow. Financial data,
except per share amounts, are expressed in millions.
EXXON MOBIL CORPORATION
FOURTH QUARTER 1999
Fourth Quarter Twelve Months
1999 1998 1999 1998
FUNCTIONAL EARNINGS ($ Millions)
Petroleum and natural gas
Exploration and production
United States 740 92 1,842 850
Non-U.S. 1,555 400 4,044 2,502
Refining and marketing
United States (48) 272 577 1,199
Non-U.S. 29 306 650 2,275
Total petroleum and natural gas $2,276 $1,070 $7,113 $6,826
Chemicals
United States 197 132 738 792
Non-U.S. 195 126 616 602
Other Operations 136 90 426 384
Corporate and Financing (95) (40) (514) (460)
Merger Expenses (425) 0 (469) 0
Earnings before acctg. changes $2,284 $1,378 $7,910 $8,144
Cumulative effect of
acctg. change 0 0 0 (70)
Net income $2,284 $1,378 $7,910 $8,074
Net income per common share $0.66 $0.39 $2.28 $2.31
Net income per common share
- assuming dilution $0.65 $0.39 $2.25 $2.28
OTHER FINANCIAL DATA ($ Millions)
Total revenue $55,961 $43,140 $186,906 $169,642
Dividends paid on common stock
Total $1,512 $1,440 $5,836 $5,783
Per common share $0.44 $0.42 $1.69 $1.67
Millions of common shares outstanding
At December 31 3,477 3,458
Average 3,459 3,449 3,453 3,468
Average-assuming dilution 3,520 3,517 3,518 3,533
Shareholders' equity at December 31 $63,700 $62,120
Average capital employed $83,750 $80,079
Income and other taxes
Income taxes 902 578 3,129 3,939
Excise taxes 5,951 5,897 21,442 20,926
All other taxes 9,958 8,775 34,570 31,184
Total taxes $16,811 $15,250 $59,141 $56,049
ExxonMobil's share of income taxes
paid by equity companies $167 $145 $466 $492
EXXON MOBIL CORPORATION
FOURTH QUARTER 1999
MERGER EXPENSES/SPECIAL ITEMS NOTED IN PRESS RELEASE
$ MILLIONS
Fourth Quarter Twelve Months
1999 1998 1999 1998
EXPLORATION & PRODUCTION
United States 0 (156) 0 (185)
Non-U.S. 0 (231) 119 (176)
Total 0 (387) 119 (361)
REFINING & MARKETING
United States 0 8 0 8
Non-U.S. 0 (375) (120) (412)
Total 0 (367) (120) (404)
CHEMICALS
United States 0 (8) 0 (8)
Non-U.S. 0 (1) 0 (1)
Total 0 (9) 0 (9)
CORPORATE AND FINANCING 0 112 0 112
MERGER EXPENSES (425) 0 (469) 0
TOTAL INCLUDED IN EARNINGS
BEFORE ACCOUNTING CHANGES (425) (651) (470) (662)
CUMULATIVE EFFECT OF
ACCOUNTING CHANGES 0 0 0 (70)
TOTAL INCLUDED IN NET INCOME (425) (651) (470) (732)
EXXON MOBIL CORPORATION
FOURTH QUARTER 1999
NET INCOME EXCLUDING MERGER EXPENSES/SPECIAL ITEMS
Fourth Quarter Twelve Months
1999 1998 1999 1998
FUNCTIONAL EARNINGS ($ Millions)
Petroleum and natural gas
Exploration and production
United States 740 248 1,842 1,035
Non-U.S. 1,555 631 3,925 2,678
Refining and marketing
United States (48) 264 577 1,191
Non-U.S. 29 681 770 2,687
Total petroleum and natural gas $2,276 $1,824 $7,114 $7,591
Chemicals
United States 197 140 738 800
Non-U.S. 195 127 616 603
Other Operations 136 90 426 384
Corporate and Financing (95) (152) (514) (572)
Total $2,709 $2,029 $8,380 $8,806
Earnings per common share $0.78 $0.58 $2.41 $2.52
Earnings per common share
- assuming dilution $0.77 $0.58 $2.38 $2.49
EXXON MOBIL CORPORATION
FOURTH QUARTER 1999
Fourth Quarter Twelve Months
1999 1998 1999 1998
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 732 736 729 745
Canada 313 333 315 322
Europe 725 653 650 635
Other Non-U.S. 809 740 823 800
Worldwide 2,579 2,462 2,517 2,502
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 2,928 3,056 2,871 3,140
Canada 681 664 683 667
Europe 5,786 5,523 4,438 4,245
Other Non-U.S. 2,456 2,246 2,316 2,565
Worldwide 11,851 11,489 10,308 10,617
Refinery throughput (kbd)
United States 1,973 1,762 1,930 1,919
Canada 430 436 441 445
Europe 1,796 1,941 1,782 1,888
Other Non-U.S. 1,792 1,871 1,824 1,841
Worldwide 5,991 6,010 5,977 6,093
Petroleum product sales (kbd)
United States 2,840 2,895 2,910 2,804
Canada 605 592 587 579
Europe 2,653 2,692 2,595 2,646
Other Non-U.S. 2,729 2,887 2,787 2,844
Worldwide 8,827 9,066 8,879 8,873
Gasolines, naphthas 3,349 3,511 3,421 3,417
Heating oils, kerosene, diesel 2,749 2,776 2,659 2,689
Aviation fuels 759 800 811 774
Heavy fuels 702 751 704 765
Specialty products 1,268 1,228 1,284 1,228
Total 8,827 9,066 8,879 8,873
Chemical product revenue
($ millions)
United States $2,198 $1,670 $7,612 $6,994
Non-U.S. $2,602 $2,151 $8,330 $8,640
Total chemicals $4,800 $3,821 $15,942 $15,634
Chemicals prime product sales(kt) 6,458 5,931 24,485 23,628
EXXON MOBIL CORPORATION
FOURTH QUARTER 1999
Fourth Quarter Twelve Months
1999 1998 1999 1998
Capital and exploration expenditures
($ millions)
United States
Exploration and production 477 647 1,716 2,193
Refining and marketing 258 349 905 1,090
Other 185 269 758 912
Non-U.S.
Exploration and production 1,377 2,249 6,609 7,797
Refining and marketing 627 634 1,493 1,918
Other 480 515 1,773 1,625
Worldwide $3,404 $4,663 $13,254 $15,535
Exploration expenses charged to income
included above ($ millions)
Consolidated affiliates
United States 55 79 220 316
Non-U.S. 250 424 928 1,172
Equity companies - ExxonMobil share
Non-U.S. 23 38 73 95
Worldwide $328 $541 $1,221 $1,583
EXXON MOBIL CORPORATION
NET INCOME
$ Millions Per Common Share
1997 - First Quarter 3,001 0.84
- Second Quarter 2,815 0.80
- Third Quarter 2,712 0.77
- Fourth Quarter 3,204 0.91
Year $11,732 $3.32
1998 - First Quarter 2,525 0.72
- Second Quarter 2,262 0.65
- Third Quarter 1,909 0.55
- Fourth Quarter 1,378 0.39
Year $8,074 $2.31
1999 - First Quarter 1,484 0.42
- Second Quarter 1,954 0.57
- Third Quarter 2,188 0.63
- Fourth Quarter 2,284 0.66
Year $7,910 $2.28
SOURCE Exxon Mobil Corporation
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Related links:
http://www.exxon.mobil.com
CONTACT:
Dave Dickson of Exxon Mobil Corporation,
972-444-1108
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