ExxonMobil reports first-quarter earnings more than doubled

by The Associated Press

Reflecting sharply higher oil prices, Exxon Mobil Corp. reported April 25 that its first-quarter earnings more than doubled from a year ago.

Exxon Mobil, the world’s largest publicly traded oil company, said operating profit rose 108 percent to $3.35 billion, or 95 cents a share, from $1.61 billion, or 46 cents, a year ago.

Analysts surveyed by First Call/Thomson Financial had forecast a consensus 90 cents a share.

The report was the first for a full quarter since the $85 billion merger in November of Exxon and Mobil. Including net favorable merger effects of $130 million, the company said, it earned $3.48 billion, or 99 cents, up 135 percent from the combined year-ago earnings of Exxon and Mobil.

Revenue rose 42 percent, to $55.08 billion from $48.68 billion.

Continuing a recent trend in the oil industry, the company said so-called “upstream” revenue from production and refining rose sharply while “downstream” activities, such as selling finished petroleum products, lagged because of the higher price of oil.

“Upstream results benefited from higher crude oil prices, which were up over $15 per barrel from the first quarter of 1999,” said ExxonMobil chairman Lee R. Raymond. “Downstream earnings were lower than last year, reflecting the inability to raise product prices in line with rising crude costs.”

Raymond said marketing profit margins declined.

The company also said it realized a net after-tax gain of $455 million from asset sales required by regulators as a condition of approving the merger of Exxon and Mobil. The company has sold service stations in the United States and fuels and marketing joint ventures in Europe.

The company said its capital spending fell sharply from $3.35 billion to $2.2 billion due to the completion of some projects, but Raymond predicted spending would rise as the year goes on.

In trading this morning, Exxon Mobil shares rose 871/2 cents to $79.871/2 on the New York Stock Exchange.