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pww.comExxon Mobil Corp., Q1 2009 Earnings Call, Apr-30-2009 - NYSE:XOM

NYSE:XOM

David S. Rosenthal [Executives] 💬

Here is a detailed list of the key points made by David S. Rosenthal during the Exxon Mobil Corporation First Quarter 2009 Earnings Conference Call:

  1. Introduction and Overview:

    • Welcomed participants to the earnings call and highlighted the recording of the session.
    • Mentioned the strength of ExxonMobil's business model despite global economic weakness.
    • Noted that crude oil and natural gas prices were significantly lower than the previous year, impacting earnings.

  2. Financial Performance:

    • Reported first quarter 2009 earnings of $4.6 billion, down from $10.9 billion in the first quarter of 2008.
    • Earnings per share were $0.092, a decrease of $1.10 from the previous year.
    • Distributed $9 billion to shareholders, including $2 billion in dividends and $7 billion in share repurchases.

  3. Cautionary Statement:

    • Emphasized that estimates and expectations are forward-looking statements and actual results may differ due to various factors.

  4. Milestones and Projects:

    • Announced the inauguration of the Qatargas II project in Qatar, which includes two LNG trains expected to start up in 2009.
    • Highlighted the integration of natural gas production, liquefaction, shipping, and regasification in the Qatargas II project.
    • Mentioned nine major project startups expected in 2009, including various LNG projects and gas developments.

  5. Safety and Exploration:

    • Noted that ExxonMobil's U.S. production operations received the Gas Processors Association's 2009 Company Safety Award.
    • Discussed ongoing exploration activities in Indonesia and Brazil, as well as unconventional natural gas opportunities in Canada, Germany, and Hungary.

  6. Downstream Operations:

    • Informed about the inauguration of a new co-generation plant at the Antwerp refinery, which is more efficient and reduces carbon emissions.
    • Discussed efforts to manage raw material costs and introduced new lubricant products.

  7. Chemical Business:

    • Announced plans to build a technology center in Shanghai, China, to support the growing chemical business in Asia.

  8. Segment Earnings:

    • Upstream earnings were reported at $3.5 billion, down from $8.8 billion in the first quarter of 2008.
    • Downstream earnings were $1.1 billion, a slight decrease from the previous year.
    • Chemical earnings were $350 million, down from $1.03 billion in the first quarter of 2008.

  9. Corporate and Financing Segment:

    • Corporate and financing expenses increased due to lower interest income and other factors.
    • Provided guidance for corporate and financing charges to be in the range of $500 to $700 million per quarter for 2009.

  10. Cash Management and Share Repurchases:

    • Discussed the cash balance of $25 billion and the strategy for share repurchases, emphasizing the importance of funding investments and paying dividends.
    • Confirmed an increase in the quarterly dividend to $0.42 per share.

  11. Capital Expenditures:

    • Reported capital expenditures of $5.8 billion for the first quarter, in line with previous guidance.
    • Emphasized the commitment to invest in robust projects through the business cycle.

  12. Closing Remarks:

    • Concluded by reiterating the strength of ExxonMobil's business model and the confidence in its long-term perspective and disciplined investment approach.

Throughout the call, David S. Rosenthal provided insights into the company's financial performance, operational achievements, and strategic initiatives, while addressing questions from analysts regarding various aspects of the business.

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