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ExxonMobil posts big profit on higher prices for oil, gas Earnings rise 53 percent in fourth quarter, while production increases slightly Allen Baker PNA Contributing Writer
Exxon Mobil Corp. posted sharply higher earnings for the fourth quarter as natural gas prices rose and refining margins rebounded from lows earlier in the year.
The Irving, Texas, company had profits of $4.09 billion, up 53 percent from $2.68 billion a year earlier and up from $2.64 billion in the third quarter of 2002.
Discontinued operations and other special items actually helped the bottom line in the final quarter of 2002, as the company had a $400 million gain that more than offset $100 million in merger expenses. Factoring those out, profits were $3.79 billion for the most recent quarter.
Upstream profits rise Upstream earnings improved to $3.00 billion, up 73 percent from $1.74 billion in the same quarter of 2001 and up 24 percent from $2.42 billion in the third quarter.
Liquids production was essentially flat, excluding the impact of OPEC quotas, while natural gas flows increased 3 percent. That came as the company’s Indonesian operations returned to normal. Gas production worldwide was 11,667 million cubic feet.
U.S. liquids declined 9 percent to 650,000 barrels daily, while Canadian flows rose 11 percent to 375,000 barrels a day. European and Asian liquids were down, while production rose in Africa. Total oil and natural gas liquids production worldwide totaled 2.5 million barrels each day, a decline of 1 percent from the year-earlier quarter, but up a bit from 2.45 million barrels in the third quarter.
Downstream rebounds a bit Downstream earnings slipped 19 percent from a year ago to $821 million, but that was a big improvement from a $125 million in profits from that segment in the third quarter.
Refining margins were weaker in most of the world than they were a year ago, company executives said, while improved marketing margins in the United States were offset by weakness elsewhere. Refinery throughput was down 1 percent to 1,860,000 barrels daily.
Chemical brought in $76 million, about half the $133 million earned in that segment a year earlier. The company blamed that on higher feedstock costs.
Annual earnings decline For the year, ExxonMobil had earnings of $11.46 billion, down 25 percent from $15.32 billion in 2001. That came on essentially flat production and with lower prices for natural gas than the peaks in early 2001. Upstream earnings dropped by a quarter, while downstream profits decrease by about two thirds compared with 2001.
Revenues for the year slipped 4 percent to $204.51 billion from $212.79 billion.
Fourth quarter revenues were $56.21 billion, an 18 percent improvement from the same quarter of 2001 and up from $54.18 billion in the third quarter.
More for exploration [00][00]5{[00][00][00][00][00][00][00][00]ding rose to $4.03 billion from $3.56 billion in the third quarter and from $3.86 billion in the fourth quarter of 2001.
For the year, ExxonMobil invested $13.96 billion on capital projects and exploration, up 13 percent from the 2001 figure.
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