Exhibit 99.1
News Release
ExxonMobil
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, TX 75039-2298
972 444 1107 Telephone
972 444 1138 Facsimile
FOR IMMEDIATE RELEASE
THURSDAY, MAY 1, 2003
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
___________________________________________
FIRST QUARTER 2003 RESULTS
__________________________
First Quarter
______________
2003 2002
____ ____
Net Income
__________
$ Millions 7,040 2,090
$ Per Common Share
Assuming Dilution 1.05 0.30
Earnings Excluding Merger Effects,
__________________________________
Discontinued Operations, Accounting Change
_________________________________
and Other Special Items
_____________
$ Millions 4,790 2,123
$ Per Common Share
Assuming Dilution 0.71 0.30
Revenue - $ Millions 63,780 43,393
Capital & Exploration
Expenditures - $ Millions 3,496 2,974
IRVING, TX, May 1 -- Exxon Mobil Corporation today reported first quarter
results. Net income was $7,040 million ($1.05 per share), an increase of
$4,950 million from the first quarter of 2002. Excluding a required accounting
change, a special item, merger effects and discontinued operations, first
quarter 2003 earnings were $4,790 million ($0.71 per share), an increase of
$2,667 million from the first quarter of 2002.
2
Revenue for the first quarter of 2003 totaled $63,780 million compared
with $43,393 million in 2002. Capital and exploration expenditures of
$3,496 million in the first quarter of 2003 were up $522 million compared with
last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"First quarter earnings were strong and improved in all parts of the
business. Capex continued to grow consistent with our long-term investment
plans. Asset management steps continued to produce positive results.
"Compared with last year's first quarter, ExxonMobil's first quarter 2003
net income of $7,040 million was up $4,950 million. Earnings excluding a
required accounting change, a special item, merger effects and discontinued
operations were $4,790 million, up $2,667 million.
"First quarter net income included a $550 million positive impact from the
required adoption of FAS 143 relating to accounting for asset retirement
obligations. Net income also included a one-time gain of $1,700 million from
the transfer of shares in Ruhrgas AG, a German gas transmission company. The
Ruhrgas shares were acquired by E.ON AG in March 2003.
"Upstream earnings, excluding the Ruhrgas gain, were a record
$3,993 million, an increase of $1,904 million from first quarter 2002 results
reflecting higher realizations on sales of crude oil and natural gas. Average
crude prices for the quarter were at historical highs reflecting the temporary
effects of the national strike in Venezuela and civil unrest in Nigeria as well
as market speculation on the impacts from war in Iraq. Natural gas prices were
higher primarily due to cold weather in the United States. Both
3
crude and natural gas prices fell during March and are significantly lower thus
far in the second quarter.
"On an oil-equivalent basis, production increased 2% excluding the effects
of the national strike in Venezuela, lower entitlements caused by higher prices
and changes in OPEC quotas. Actual oil-equivalent production, including these
impacts, was flat. Plans for long-term capacity increases remain on track as
reflected by higher capital spending.
"Downstream earnings were $723 million, an increase of $751 million from
last year's very weak first quarter, reflecting improved industry-wide
conditions. Refining and marketing margins were higher in most areas worldwide.
"Chemicals earnings of $287 million were up $155 million from last year's
first quarter. Earnings benefited from record volumes, which were up 4% from
last year. Favorable foreign exchange effects and improvements in non-U.S.
margins were partly offset by margin declines in the U.S.
"Income and other taxes for the first quarter of $18,684 million were up
$4,121 million compared to last year.
"In the first quarter, ExxonMobil continued its active investment
program, spending $3,496 million on capital and exploration projects, compared
with $2,974 million last year, reflecting continued growth in upstream
spending.
"During the quarter, the corporation acquired 35 million shares at a
gross cost of $1,191 million to offset the dilution associated with benefit
plans and to reduce common stock outstanding."
4
Additional comments on earnings for the major operating segments follow:
First Quarter 2003 vs. First Quarter 2002
_________________________________________
Upstream earnings were a record $3,993 million, up $1,904 million from
the first quarter 2002 reflecting higher crude oil and natural gas
realizations.
Oil-equivalent production was up 2% versus the first quarter of last year,
excluding the impact of the national strike in Venezuela, lower entitlements
caused by higher prices and changes in OPEC quotas. Total actual oil-equivalent
production was flat as contributions from new projects and work programs were
offset by natural field declines, reduced production in Venezuela and
entitlement/quota impacts.
Liquids production of 2,506 kbd (thousands of barrels per day) decreased
from 2,541 kbd in the first quarter of 2002. Higher production in Nigeria and
Canada, and reduced OPEC quota restrictions in Abu Dhabi, were more than offset
by supply disruptions in Venezuela, lower entitlements and natural field
declines in mature areas. Excluding the strike-related effects in Venezuela
and entitlement/quota impacts, liquids production was flat in the first quarter
versus last year.
First quarter natural gas production increased to 12,048 mcfd (millions of
cubic feet per day), compared with 11,740 mcfd last year. Higher weather-
related demand in Europe more than offset natural field decline in mature
areas.
Earnings from U.S. upstream operations were $1,259 million, up
$811 million. Non-U.S. upstream earnings of $2,734 million were $1,093 million
higher than last year's first quarter excluding the $1,700 million Ruhrgas
gain.
5
Downstream earnings of $723 million, representing about 2 cents per
gallon, increased $751 million from the first quarter of last year reflecting
the recovery in worldwide refining and marketing margins from very weak
conditions. Petroleum product sales were 7,861 kbd, 186 kbd higher than last
year's first quarter.
U.S. downstream earnings were $174 million, up $160 million due to higher
refining and marketing margins. Non-U.S. downstream earnings of $549 million
were $591 million higher than last year's first quarter. In addition to margin
effects, non-U.S. downstream results benefited from the absence of negative
foreign exchange effects in Argentina in the first quarter of 2002.
Chemicals earnings of $287 million were up $155 million from the same
quarter a year ago due to higher volumes, improved non-U.S. margins and
favorable foreign exchange effects. Prime product sales of 7,000 kt (thousands
of metric tons) were up 280 kt, reflecting higher demand in key commodity
businesses across most regions.
Corporate and financing expenses of $213 million increased $143 million
mainly due to higher U.S. pension costs.
During the first quarter of 2003, Exxon Mobil Corporation purchased
35 million shares of its common stock for the treasury at a gross cost of
$1,191 million. These purchases were to offset shares issued in conjunction
with company benefit plans and programs and to reduce the number of shares
outstanding. Shares outstanding were reduced from 6,700 million at the end of
the fourth quarter of 2002 to 6,679 million at the end of the first quarter.
Purchases may be made in both the open market and through negotiated
transactions, and may be discontinued at any time.
6
Estimates of key financial and operating data follow. Financial data,
except per share amounts, are expressed in millions of dollars.
ExxonMobil will discuss financial and operating results and other matters
on a webcast at 10 a.m. central time on May 1, 2003. To listen to the event
live or in archive, go to our website at www.exxonmobil.com.
______________________________________________________
Statements in this release relating to future plans, projections, events,
or conditions are forward-looking statements. Actual results, including
production growth and capital spending, could differ materially due to changes
in market conditions affecting the oil and gas industry; political events or
disturbances; changes in OPEC quotas; changes in technical or operating
conditions; and other factors including those discussed under the heading
"Factors Affecting Future Results" on our website and in Item 1 of
ExxonMobil's 2002 Form 10-K. We assume no duty to update these statements as of
any future date.
Consistent with previous practice, the first quarter press release
includes both net income and earnings excluding a required accounting change,
a special item, merger expenses and discontinued operations. Earnings that
exclude the aforementioned segments are a non-GAAP financial measure and are
included to help facilitate comparisons of base business performance across
periods. A reconciliation to net income is shown in Attachment II. Further
information on ExxonMobil's frequently used financial and operating measures is
contained on pages 26 and 27 in the 2002 Form 10-K and is also available
through our website at www.exxonmobil.com. Additional information on the
required accounting change is contained on pages 34 and 35 in the 2002
Form 10-K.
ATTACHMENT I
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
___________________
(millions of dollars, except per share amounts)
First Quarter
_______________
2003 2002
____ ____
EARNINGS / EARNINGS PER SHARE
Total revenue 63,780 43,393
Total cost and other deductions 53,902 40,065
Income before income taxes $ 9,878 $ 3,328
Income taxes 3,388 1,265
Income from continuing operations $ 6,490 $ 2,063
Discontinued operations 0 27
Accounting change 550 0
Net income (U.S. GAAP) $ 7,040 $ 2,090
Net income per common share (dollars)
Income from continuing operations 0.97 0.30
Discontinued operations 0.00 0.00
Accounting change 0.08 0.00
Net income $ 1.05 $ 0.30
Net income per common share
- - assuming dilution (dollars)
Income from continuing operations 0.97 0.30
Discontinued operations 0.00 0.00
Accounting change 0.08 0.00
Net income $ 1.05 $ 0.30
(continued)
Note - - Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Earnings of divested coal and
copper mining businesses are reported as discontinued operations.
ATTACHMENT I (continued)
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
___________________
(millions of dollars, except per share amounts)
First Quarter
_______________
2003 2002
____ ____
OTHER FINANCIAL DATA
Dividends on common stock
Total $ 1,541 $ 1,563
Per common share $ 0.23 $ 0.23
Millions of common shares outstanding
At March 31 6,679 6,782
Average 6,683 6,793
Average - assuming dilution 6,714 6,858
Shareholders' equity at March 31 $ 79,585 $ 72,367
Capital employed at March 31 $ 93,676 $ 86,896
Income and other taxes
Income taxes 3,388 1,265
Excise taxes 5,831 4,791
All other taxes 9,465 8,507
Total taxes $ 18,684 $ 14,563
ExxonMobil's share of income taxes
of equity companies: $ 329 $ 224
Note - - Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Earnings of divested coal and
copper mining businesses are reported as discontinued operations.
ATTACHMENT II
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
FUNCTIONAL EARNINGS
___________________
(millions of dollars)
First Quarter
_______________
2003 2002
____ ____
Net Income (U.S. GAAP)
Upstream
United States 1,259 448
Non-U.S. 4,434 1,641
Downstream
United States 174 14
Non-U.S. 549 (42)
Chemicals
United States 16 70
Non-U.S. 271 62
Corporate and financing (213) (70)
Merger expenses 0 (60)
Income from continuing operations 6,490 2,063
Discontinued operations 0 27
Accounting change 550 0
Net income (U.S. GAAP) $ 7,040 $ 2,090
Merger Effects, Discontinued Operations, Accounting Change,
and Other Special Items
Upstream
Non-U.S. 1,700 0
Merger expenses 0 (60)
Discontinued operations 0 27
Accounting change 550 0
Corporate total $ 2,250 $ (33)
Earnings Excluding Merger Effects, Discontinued Operations
Accounting Change and Other Special Items
Upstream
United States 1,259 448
Non-U.S. 2,734 1,641
Downstream
United States 174 14
Non-U.S. 549 (42)
Chemicals
United States 16 70
Non-U.S. 271 62
Corporate and financing (213) ( 70)
Corporate total $ 4,790 $ 2,123
Note - - Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Earnings of divested coal and
copper mining businesses are reported as discontinued operations.
ATTACHMENT III
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
___________________
First Quarter
_______________
2003 2002
____ ____
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 635 718
Canada 346 331
Europe 621 610
Asia-Pacific 231 268
Africa 414 344
Other Non-U.S. 259 270
Worldwide 2,506 2,541
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 2,369 2,492
Canada 931 1,064
Europe 6,321 5,694
Asia-Pacific 1,792 1,922
Other Non-U.S. 635 568
Worldwide 12,048 11,740
Oil-equivalent production (koebd)* 4,514 4,498
(continued)
* Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
___________________
First Quarter
_______________
2003 2002
____ ____
Petroleum product sales (kbd)
United States 2,573 2,712
Canada 613 573
Europe 1,988 1,990
Asia-Pacific 1,805 1,525
Other Non-U.S. 882 875
Worldwide 7,861 7,675
Gasolines, naphthas 3,035 3,083
Heating oils, kerosene, diesel 2,517 2,383
Aviation fuels 660 663
Heavy fuels 642 600
Specialty products 1,007 946
Total 7,861 7,675
Refinery throughput (kbd)
United States 1,683 1,847
Canada 447 441
Europe 1,464 1,526
Asia-Pacific 1,506 1,370
Other Non-U.S. 290 232
Worldwide 5,390 5,416
Chemical product revenue
($ millions)
United States $ 2,599 $ 1,838
Non-U.S. $ 3,831 $ 2,459
Worldwide $ 6,430 $ 4,297
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,861 2,744
Non-U.S. 4,139 3,976
Worldwide 7,000 6,720
ATTACHMENT IV
EXXON MOBIL CORPORATION
FIRST QUARTER 2003
___________________
(millions of dollars)
First Quarter
_______________
2003 2002
____ ____
Capital and Exploration Expenditures
Upstream
United States 489 586
Non-U.S. 2,295 1,679
Total 2,784 2,265
Downstream
United States 308 149
Non-U.S. 273 243
Total 581 392
Chemicals, administrative and
discontinued operations
United States 63 193
Non-U.S. 68 124
Total 131 317
Worldwide $ 3,496 $ 2,974
Exploration expenses charged to income
included above
Consolidated affiliates
United States 35 66
Non-U.S. 107 147
Equity companies - ExxonMobil share
Non-U.S. 12 2
Worldwide $ 154 $ 215
Note - - Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Capital and exploration
expenditures of divested coal and copper mining businesses are reported as
discontinued operations.
ATTACHMENT V
EXXON MOBIL CORPORATION
NET INCOME
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$ Millions Per Common Share
__________ ________________
1999 - First Quarter 1,484 0.21
- Second Quarter 1,954 0.29
- Third Quarter 2,188 0.31
- Fourth Quarter 2,284 0.33
Year $ 7,910 $ 1.14
2000 - First Quarter 3,480 0.50
- Second Quarter 4,530 0.66
- Third Quarter 4,490 0.63
- Fourth Quarter 5,220 0.76
Year $17,720 $ 2.55
2001 - First Quarter 5,000 0.72
- Second Quarter 4,460 0.66
- Third Quarter 3,180 0.46
- Fourth Quarter 2,680 0.39
Year $15,320 $ 2.23
2002 - First Quarter 2,090 0.30
- Second Quarter 2,640 0.40
- Third Quarter 2,640 0.39
- Fourth Quarter 4,090 0.60
Year $11,460 $ 1.69
2003 First Quarter 7,040 1.05