Third Quarter Nine Months
1999 1998 1999 1998
Net Income - $ Million 1,500 1,400 3,725 4,840
Net Income - $ Per Common Share 0.62 0.58 1.54 1.98
Net Income - $ Per Common Share
Assuming Dilution 0.61 0.58 1.52 1.96
Revenue - $ Million 33,072 28,496 89,378 87,825
Capital & Exploration
Expenditures - $ Million 1,982 2,553 6,602 7,079
IRVING, Texas, Oct. 25 /PRNewswire/ -- Exxon Corporation (NYSE: XON) today
reported third quarter 1999 net income of $1,500 million, up 7% from
$1,400 million in the third quarter of 1998. On a per share basis, quarterly
net income was $0.61 per share compared to $0.58 per share in last year's
third quarter.
Revenue for the third quarter of 1999 totaled $33,072 million compared to
$28,496 million in the third quarter of 1998. Capital and exploration
expenditures were $1,982 million in the third quarter 1999 compared to
$2,553 million in last year's third quarter.
Exxon Chairman Lee R. Raymond commented as follows:
"Exxon's net income of $1.5 billion increased $100 million from the third
quarter of 1998. The improvement was driven by higher crude prices, which
were up about $8 per barrel on average. Upstream earnings more than doubled
compared to last year's third quarter and represented the highest third
quarter upstream results in 15 years. Record chemicals sales volumes and
reduced operating expenses across the segments also benefited earnings.
However, depressed downstream margins in all geographic areas, weaker
chemicals margins and lower coal prices continued to negatively affect total
results. Unfavorable foreign exchange effects also lowered earnings.
"With the improvement in oil prices, third quarter results exceeded the
second quarter of 1999 by $295 million or 24%, in contrast to the seasonal
earnings decline normally seen from the second to the third quarter of each
year.
"Third quarter crude oil prices were up about $5 per barrel from the
second quarter of this year. U.S. gas prices also improved almost $0.50 per
kcf (thousand cubic feet) from the second quarter. However, natural gas
prices were still depressed in Europe as the impact of rising crude and
petroleum product reference prices have not yet been reflected in contractual
prices.
"As crude prices increased rapidly during the quarter, downstream earnings
decreased substantially versus the same period last year, reflecting the
inability to raise product prices in line with rising crude prices.
Downstream margins in all markets were depressed. International downstream
earnings were also adversely affected by foreign exchange effects. As a
result of these factors, third quarter downstream earnings, excluding non-
recurring items, were the lowest quarterly results in over a decade.
"Chemicals earnings were up slightly, as record quarterly sales volumes
and lower operating expenses offset the impact of higher feedstock costs which
depressed margins. Earnings from other operations also improved slightly due
to higher copper prices and volumes and lower operating expenses.
"During the quarter, Exxon continued its active investment program,
spending nearly $2.0 billion on capital and exploration projects."
Additional comments follow comparing earnings from major operating
segments with the third quarter of last year:
Third Quarter 1999 vs. Third Quarter 1998
Exploration and production earnings benefited from rising crude oil
prices, which averaged about $8 per barrel more than the third quarter of
1998. Natural gas prices were higher in the U.S., but were lower in Europe.
Exploration and producing expenses were reduced versus the prior year.
Liquids production decreased to 1,514 kbd (thousand barrels per day)
compared to 1,553 kbd in the third quarter of 1998, primarily due to lower
liftings in Alaska, Malaysia and Canada. The decline was partly offset by
production from new developments in the North Sea, the Gulf of Mexico and
Azerbaijan. Fourth quarter production is expected to increase due to the
start-up of new developments in Norway. Production from the Balder field
began at the end of September. The Jotun development is planned to start up
at the end of October. Third quarter natural gas production of 5,078 mcfd
(million cubic feet per day) was down 129 mcfd from the prior year.
Earnings from U.S. exploration and production were $451 million, an
increase of $240 million from last year. Outside the U.S., earnings from
exploration and production were $563 million, an increase of $289 million from
the third quarter of 1998.
Petroleum product sales of 5,431 kbd equaled last year's record third
quarter results. 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 outside the U.S. were also adversely affected by
unfavorable foreign exchange effects.
In the U.S., refining and marketing earnings were $118 million, down
$24 million from the prior year. Refining and marketing operations outside
the U.S. earned $19 million, a decrease of $420 million from 1998.
Chemicals earnings were $303 million compared with $301 million in the
same quarter a year ago. Margins were compressed as feedstock costs increased
faster than product prices. Prime product sales volumes of 4,596 kt (thousand
metric tons) established a quarterly record and were 6% 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 $108 million, compared to $102 million in the third quarter of 1998.
Earnings improved on higher copper prices and volumes and continued reductions
in operating expenses.
Corporate and financing expenses of $62 million compared with $69 million
in the third quarter of last year.
During the third quarter of 1999, Exxon purchased 1.0 million shares of
its common stock for the treasury at a cost of $84 million, representing a
continuation of purchases to offset shares issued in conjunction with the
Company's benefit plans and programs. Purchases are made in open market and
negotiated transactions and may be discontinued at any time. As a consequence
of the proposed merger of Exxon and Mobil, the repurchase program to reduce
the number of Exxon shares outstanding was discontinued in December of 1998.
First Nine Months 1999 vs. First Nine Months 1998
Net income was $3,725 million for the first nine months of 1999, a
decrease of 23% from the $4,840 million earned in 1998. Net income for the
first nine months of 1999 included a $120 million charge for the restructuring
of Japanese operations, while the prior year period included a $70 million
charge relating to an accounting change. Excluding non-recurring items, net
income for the first nine months of 1999 declined 22% to $3,845 million or
$1.57 per share, compared to $4,910 million or $1.99 per share last year.
Exploration and production earnings have increased due to the improvement
in crude prices. Crude oil realizations were up almost $3 per barrel versus
the first nine months of 1998. However, European gas prices were about
20% lower than the previous year. Liquids production of 1,544 kbd compared to
1,595 kbd in the same period of 1998, primarily due to natural field declines,
steps to curtail marginal volumes in the low price environment of the first
half of the year and lower liftings in Canada. Partly offsetting this was
increased production from new developments in the North Sea, the Gulf of
Mexico and Azerbaijan. Worldwide natural gas production of 6,008 mcfd was
essentially unchanged from the prior year. Exploration and producing expenses
were reduced from prior year levels.
Earnings from U.S. exploration and production operations for the first
nine months were $856 million, an increase of $231 million from 1998. Outside
the U.S., exploration and production earnings were $1,488 million, up
$34 million from last year.
Petroleum product sales of 5,443 kbd increased 30 kbd over last year,
principally due to volume growth in North America. Earnings from U.S.
refining and marketing operations were $214 million, down $254 million from
1998, reflecting the inability to pass through higher crude costs to the
marketplace. Outside the U.S., refining and marketing earnings for the first
nine months, excluding non-recurring items, decreased $1,020 million to
$327 million, driven by much lower margins, higher planned maintenance
activities and unfavorable foreign exchange effects. Reduced operating
expenses provided some offset to these factors.
Chemicals earnings totaled $882 million for the first nine months of 1999
compared with $970 million last year. Industry margins declined versus last
year due to lower product prices and higher feedstock costs. Prime product
sales volumes of 13,428 kt were a record for the first nine months and
increased 4% over last year. Chemicals earnings also benefited from lower
operating expenses.
Earnings from other operations totaled $290 million, a decrease of
$4 million from the first nine months of 1998, reflecting depressed copper and
coal prices, offset by reduced operating expenses and higher production
volumes. 1999 year-to-date production volumes for copper and coal were at
record levels. Corporate and financing expenses decreased $36 million to
$212 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 first nine months of 1999, Exxon purchased 7.5 million shares
of its common stock for the treasury at a cost of $579 million, representing a
continuation of purchases to offset shares issued in conjunction with the
Company's benefit plans and programs.
Estimates of key financial and operating data follow. Financial data,
except per share amounts, are expressed in millions.
EXXON CORPORATION
THIRD QUARTER 1999
Third Quarter Nine Months
1999 1998 1999 1998
FUNCTIONAL EARNINGS ($ Millions)
Petroleum and natural gas
Exploration and production
United States 451 211 856 625
Non-U.S. 563 274 1,488 1,454
Refining and marketing
United States 118 142 214 468
Non-U.S. 19 439 207 1,347
Total petroleum and natural gas $1,151 $1,066 $2,765 $3,894
Chemicals
United States 187 181 545 579
Non-U.S. 116 120 337 391
Other Operations 108 102 290 294
Corporate and Financing (62) (69) (212) (248)
Earnings before acctg. changes $1,500 $1,400 $3,725 $4,910
Cumulative effect of
acctg. change 0 0 0 (70)
Net income $1,500 $1,400 $3,725 $4,840
Net income per common share $0.62 $0.58 $1.54 $1.98
Net income per common share
- assuming dilution $0.61 $0.58 $1.52 $1.96
OTHER FINANCIAL DATA ($ Millions)
Total revenue (A) $33,072 $28,496 $89,378 $87,825
Dividends paid on common stock
Total $995 $999 $2,986 $3,006
Per common share $0.41 $0.41 $1.23 $1.23
Millions of common shares outstanding
At September 30 2,428 2,431
Average 2,428 2,435 2,428 2,443
Average-assuming dilution 2,456 2,465 2,455 2,473
Shareholders' equity at September 30 $43,834 $43,689
Capital employed at September 30 $55,115 $52,690
Income and other taxes (A)
Income taxes 729 640 1,178 2,097
Excise taxes 3,760 3,395 10,718 10,449
All other taxes 6,123 6,008 17,982 17,389
Total taxes $10,612 $10,043 $29,878 $29,935
Exxon's share of income taxes
paid by equity companies(A) $53 $49 $218 $264
(A) 1998 amounts were restated to reflect the retroactive de-
consolidation of majority owned power segment companies in Hong Kong
and China in the fourth quarter of 1998. See the 1998 Annual Report
Financial Section for additional information.
EXXON CORPORATION
THIRD QUARTER 1999
SPECIAL ITEMS NOTED IN PRESS RELEASE
$ MILLION
Third Quarter Nine Months
1999 1998 1999 1998
REFINING & MARKETING
Non-U.S.
Restructuring 0 0 (120) 0
TOTAL INCLUDED IN EARNINGS
BEFORE ACCOUNTING CHANGES 0 0 (120) 0
CUMULATIVE EFFECT OF
ACCOUNTING CHANGES 0 0 0 (70)
TOTAL INCLUDED IN NET INCOME 0 0 (120) (70)
EXXON CORPORATION
THIRD QUARTER 1999
Third Quarter Nine Months
1999 1998 1999 1998
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 470 483 487 509
Canada 247 260 239 251
Europe 473 463 489 493
Other Non-U.S. 324 347 329 342
Worldwide 1,514 1,553 1,544 1,595
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 2,029 2,012 2,003 2,057
Canada 273 235 248 227
Europe 1,683 1,930 2,750 2,656
Other Non-U.S. 1,093 1,030 1,007 1,046
Worldwide 5,078 5,207 6,008 5,986
Refinery throughput (kbd)
United States 1,206 1,050 1,132 1,068
Canada 450 463 444 448
Europe 1,429 1,531 1,426 1,506
Other Non-U.S. 847 897 899 904
Worldwide 3,932 3,941 3,901 3,926
Petroleum product sales (kbd)
United States 1,490 1,342 1,423 1,340
Canada 586 593 572 566
Europe 1,905 1,977 1,923 1,959
Other Non-U.S. 1,450 1,519 1,525 1,548
Worldwide 5,431 5,431 5,443 5,413
Gasolines, naphthas 2,137 2,111 2,078 2,041
Heating oils, kerosene, diesel 1,601 1,653 1,708 1,717
Aviation fuels 503 465 477 460
Heavy fuels 493 518 498 525
Specialty products 697 684 682 670
Total 5,431 5,431 5,443 5,413
Chemical product revenue
($ millions)
United States $1,532 $1,326 $4,106 $4,123
Non-U.S. $1,568 $1,538 $4,114 $4,850
Total chemicals $3,100 $2,864 $8,220 $8,973
Chemicals prime product sales (kt) 4,596 4,325 13,428 12,907
EXXON CORPORATION
THIRD QUARTER 1999
Third Quarter Nine Months
1999 1998 1999 1998
Capital and exploration expenditures
($ millions)
United States
Exploration and production 335 400 1,005 1,171
Refining and marketing 160 178 471 479
Other 162 124 449 330
Non-U.S.
Exploration and production 708 1,088 2,825 3,226
Refining and marketing 235 309 656 840
Other 382 454 1,196 1,033
Worldwide $1,982 $2,553 $6,602 $7,079
Exploration expenses charged to income
included above ($ millions)
Consolidated affiliates
United States 35 29 82 144
Non-U.S. 116 168 358 485
Equity companies - Exxon share
Non-U.S. 11 18 50 56
Worldwide $162 $215 $490 $685
EXXON CORPORATION
NET INCOME
$ Million Per Common Share
1993 - First Quarter 1,185 0.47
- Second Quarter 1,235 0.49
- Third Quarter 1,360 0.54
- Fourth Quarter 1,500 0.60
Year $5,280 $2.10
1994 - First Quarter 1,160 0.46
- Second Quarter 885 0.35
- Third Quarter 1,155 0.46
- Fourth Quarter 1,900 0.77
Year $5,100 $2.04
1995 - First Quarter 1,660 0.66
- Second Quarter 1,630 0.65
- Third Quarter 1,500 0.60
- Fourth Quarter 1,680 0.68
Year $6,470 $2.59
1996 - First Quarter 1,885 0.76
- Second Quarter 1,570 0.63
- Third Quarter 1,560 0.62
- Fourth Quarter 2,495 1.00
Year $7,510 $3.01
1997 - First Quarter 2,175 0.87
- Second Quarter 1,965 0.79
- Third Quarter 1,820 0.74
- Fourth Quarter 2,500 1.01
Year $8,460 $3.41
1998 - First Quarter 1,820 0.74
- Second Quarter 1,620 0.66
- Third Quarter 1,400 0.58
- Fourth Quarter 1,530 0.63
Year $6,370 $2.61
1999 - First Quarter 1,020 0.42
- Second Quarter 1,205 0.50
- Third Quarter 1,500 0.62
SOURCE Exxon Corporation
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Related links:
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CONTACT:
Ed Burwell of Exxon Corporation, 972-444-1108
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