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pww.comExxon Mobil Corp., Q3 2009 Earnings Call, Oct-29-2009 - NYSE:XOM

NYSE:XOM

David S. Rosenthal [Executives] đź’¬

David S. Rosenthal provided a comprehensive overview of ExxonMobil’s third quarter 2009 financial and operating results. Here are the key points he addressed:

  1. Opening Remarks:

    • Acknowledged the challenging market conditions with commodity prices below the previous year's levels and ongoing economic weakness.
    • Highlighted ExxonMobil's strong operating performance and successful startup of four major projects.

  2. Cautionary Statement:

    • Reminded listeners that the presentation contained forward-looking statements and that actual results could differ materially due to various factors.
    • Directed attendees to the cautionary statement and SEC filings for details on factors affecting future results.

  3. Third Quarter Results:

    • Reported earnings of $4.7 billion, a decrease of $10.1 billion compared to the third quarter of 2008, primarily due to lower commodity prices and weaker demand.
    • Excluding special items, earnings were down $8.7 billion, with earnings per share of $0.98, down $1.60 from the previous year.
    • Distributed a total of $6 billion to shareholders, including dividends and share purchases to reduce shares outstanding, demonstrating the company's commitment to returning cash to shareholders.

  4. Business Line Results:

    • Upstream:
      • Discussed the progress of the Ras Laffan 3 and Qatargas 2 liquefied natural gas (LNG) projects, including the startup of Trains 6 and 5, respectively.
      • Mentioned the startup of the Adriatic LNG regasification terminal offshore Italy.
      • Noted the completion of seven major project startups to date in 2009.
      • Provided updates on exploration activities, including drilling and appraisal wells in various regions.
    • Downstream:
      • Mentioned projects aimed at improving energy efficiency and reducing emissions.
      • Highlighted the selection of Mobil 1 as the factory and service fill motor oil for the new 2010 Chevy Camaro SS.
      • Discussed activities to optimize refinery operations and expand crude flexibility.
    • Chemical Business:
      • Announced the startup of chemical units in the new integrated refining and petrochemical complex in Fujian Province, China.
      • Mentioned the receipt of safety awards by several ExxonMobil facilities.

  5. Operating Results:

    • Detailed the upstream earnings, noting a decrease of $5.3 billion due to lower commodity prices and weaker natural gas realizations.
    • Explained the downstream earnings decrease of $2.7 billion, primarily due to weaker industry refining margins and negative price finalization effects.
    • Highlighted the chemical earnings decrease of $210 million, primarily due to lower realizations.

  6. Corporate and Financing Segment:

    • Noted an increase in corporate and financing expenses of $412 million, primarily due to lower interest income.
    • Reported a cash balance of $12.5 billion and debt of about $9.5 billion.
    • Shared plans for share purchases to reduce shares outstanding, with expectations of $2 billion in the fourth quarter of 2009.
    • Mentioned a 5% decrease in capital expenditures (CapEx) for the third quarter, reflecting favorable foreign exchange effects.

  7. Summary:

    • Emphasized the strength of ExxonMobil's integrated business model and the company's confidence in delivering superior results and positioning itself well for the future.

  8. Q&A Session:

    • Addressed questions regarding cost reduction efforts, the U.S. downstream business, asset acquisitions, European volumes and contract structures, chemical margins, refining margins, and CapEx.

David S. Rosenthal provided detailed responses to each question, offering insights into the company's strategies, operational performance, and financial results.

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