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, July 31, 2003
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
___________________________________________
SECOND QUARTER 2003 RESULTS
___________________________
Second Quarter First Half
______________ __________
2003 2002 2003 2002
____ ____ ____ ____
Net Income
__________
$ Millions 4,170 2,640 11,210 4,730
$ Per Common Share
Assuming Dilution 0.62 0.39 1.67 0.69
Earnings Excluding Merger Effects,
_________________________________
Discontinued Operations, Accounting
___________________________________
Change and Other Special Items
______________________________
$ Millions 4,170 2,659 8,960 4,782
$ Per Common Share
Assuming Dilution 0.62 0.39 1.33 0.69
Revenue - $ Millions 57,165 50,804 120,945 94,197
Capital & Exploration
Expenditures - $ Millions 3,831 3,393 7,327 6,367
IRVING, TX, July 31 -- Exxon Mobil Corporation today reported second
quarter results. Net income was $4,170 million ($0.62 per share), an increase
of $1,530 million from the second quarter of 2002. Excluding merger effects
and discontinued operations, earnings increased $1,511 million from the second
quarter of 2002.
2
Revenue for the second quarter of 2003 totaled $57,165 million compared
with $50,804 million in 2002. Capital and exploration expenditures of
$3,831 million in the second quarter of 2003 were up $438 million compared
with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"Second quarter earnings remained strong and improved in all parts of the
business versus last year. Chemicals earnings were at their highest level
since 1998. Capex continued to grow consistent with our long-term investment
plans.
"Compared with last year's second quarter, ExxonMobil's net income of
$4,170 million was up $1,530 million.
"Upstream earnings were $2,838 million, an increase of $608 million from
second quarter 2002 results reflecting higher average crude and natural gas
prices.
"On an oil-equivalent basis, actual production in the second quarter was
flat with increased European gas demand and contributions from new projects
offset by natural field decline and the impacts of operational outages in
the North Sea and West Africa. The majority of the operational problems were
resolved by the end of the second quarter.
"Excluding the impacts of the national strike in Venezuela and the second
quarter operational outages, total oil and natural gas producible volumes
increased 2% versus the first half of last year. Plans for long-term capacity
increases remain on track as reflected by higher capital spending.
3
"Downstream earnings were $1,146 million, an increase of $764 million
from last year's second quarter reflecting improved industry-wide conditions.
Margins were particularly strong at the beginning of the quarter but have
since weakened significantly.
"Chemicals earnings of $439 million, were up $170 million from last
year's second quarter. Earnings benefited from higher worldwide margins early
in the quarter and favorable foreign exchange effects.
"ExxonMobil's net income for the first half of 2003 was $11,210 million,
up $6,480 million from the first half of 2002 reflecting improved results in
all areas of the business.
"In the second quarter, ExxonMobil continued its active investment
program, spending $3,831 million on capital and exploration projects,
compared with $3,393 million last year, reflecting continued growth in
upstream spending.
"During the quarter, the corporation acquired 33 million shares at a
gross cost of $1,194 million to offset the dilution associated with benefit
plans and to reduce common stock outstanding. Due to the strong earnings
through the first half of the year and the resulting significant cash flow,
the corporation has increased its rate of share purchases in July."
Additional comments on earnings for the major operating segments follow:
Second Quarter 2003 vs. Second Quarter 2002
___________________________________________
Upstream earnings were $2,838 million, up $608 million from the second
quarter 2002 reflecting higher crude oil and natural gas realizations.
4
Oil-equivalent production was flat versus the second quarter of last
year. Higher European gas demand and contributions from new projects and work
programs were offset by natural field declines and operational issues in the
North Sea and West Africa. Operational problems were largely resolved by the
end of the quarter.
Liquids production of 2,478 kbd (thousands of barrels per day) decreased
from 2,495 kbd in the second quarter of 2002. Higher production in Nigeria and
Canada, and reduced OPEC quota restrictions in Abu Dhabi, were more than
offset by natural field declines in mature areas and by the operational
outages in the North Sea and West Africa.
Second quarter natural gas production increased to 9,259 mcfd (millions
of cubic feet per day), compared with 9,192 mcfd last year. Higher demand in
Europe and contributions from new projects and work programs more than offset
natural field decline in mature areas and the impacts of operational problems
in the North Sea.
Earnings from U.S. upstream operations were $907 million, up
$230 million. Non-U.S. upstream earnings of $1,931 million were $378 million
higher than last year's second quarter.
Downstream earnings of $1,146 million increased $764 million from the
second quarter of last year reflecting stronger worldwide refining and
marketing margins. Petroleum product sales were 7,800 kbd, 231 kbd higher
than last year's second quarter.
5
U.S. downstream earnings were $419 million, up $185 million. Non-U.S.
downstream earnings of $727 million were $579 million higher than last
year's second quarter.
Chemicals earnings of $439 million were up $170 million from the same
quarter a year ago due to improved margins during the first part of the period
and favorable foreign exchange effects. Prime product sales of 6,369 kt
(thousands of metric tons) were down 333 kt, reflecting lower industry demand.
Corporate and financing expenses of $253 million increased by $31 million
mainly due to higher U.S. pension costs.
During the second quarter of 2003, Exxon Mobil Corporation purchased
33 million shares of its common stock for the treasury at a gross cost of
$1,194 million. In addition, from July 1 through July 30, the corporation
purchased 14 million shares for the treasury at a gross cost of $513 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 6,679 million at the end of the first
quarter of 2003 to 6,652 million at the end of the second quarter. Purchases
may be made in both the open market and through negotiated transactions.
Purchases may be increased, decreased or discontinued at any time without
prior notice.
First Half 2003 vs. First Half 2002
___________________________________
Net income of $11,210 million ($1.67 per share) for the first half of
2003 increased $6,480 million from the first half of 2002. Excluding a
required accounting change, a special item, merger effects and discontinued
operations, first half 2003
6
earnings of $8,960 million ($1.33 per share) were $4,178 million higher than
2002. Net income for the first half 2003 included a $550 million positive
impact for the required adoption of FAS 143 relating to accounting for asset
retirement obligations. First half net income in 2003 also included a one-time
gain of $1,700 million from the transfer of shares in Ruhrgas AG, a German gas
transmission company. First half net income in 2002 included $90 million of
after-tax merger expenses and $38 million in earnings from discontinued
operations.
Upstream earnings, excluding the Ruhrgas gain, of $6,831 million
increased $2,512 million due to higher liquids and natural gas realizations.
Total oil and natural gas producible volumes increased 2% versus the first
half of last year as higher European gas demand and contributions from new
projects and work programs more than offset natural field decline. Taking into
account the effects of the national strike in Venezuela, and the operational
outages in the second quarter, actual oil-equivalent production was flat.
Liquids production of 2,491 kbd decreased 27 kbd from 2002. Higher
production in Nigeria and Canada, and lower OPEC-driven quota constraints,
were offset by natural field decline and the impact of operational problems in
the North Sea and West Africa.
First half 2003 natural gas production of 10,652 mcfd increased 193 mcfd
from 2002. Higher demand in Europe and contributions from new projects and
work programs more than offset natural field decline and the operational
outages in the North Sea.
7
Earnings from U.S. upstream operations for the first half of 2003 were
$2,166 million, an increase of $1,041 million. Earnings outside the U.S.
were $4,665 million, $1,471 million higher than last year.
Downstream earnings of $1,869 million increased by $1,515 million from a
weak first half of 2002 reflecting higher worldwide refining and marketing
margins. Petroleum product sales of 7,830 kbd compared with 7,622 kbd in the
first half of 2002.
U.S. downstream earnings were $593 million, up $345 million. Non-U.S.
downstream earnings of $1,276 million were $1,170 million higher than last
year.
Chemicals earnings of $726 million were up $325 million from the first
half of 2002 due to improved margins and favorable foreign exchange effects.
Prime product sales of 13,260 kt were down 76 kt, reflecting lower demand.
Corporate and financing expenses of $466 million increased by $174
million mainly due to higher U.S. pension costs.
During the first half of 2003, Exxon Mobil Corporation purchased
68 million shares of its common stock for the treasury at a gross cost of
$2,385 million. These purchases were to offset shares issued in conjunction
with company benefit plans and programs and to reduce the number of shares
outstanding.
Estimates of key financial and operating data follow. Financial data,
except per share amounts, are expressed in millions of dollars.
8
ExxonMobil will discuss financial and operating results and other matters
on a webcast at 10 a.m. central time on July 31, 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 and capacity 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 or rates of natural field decline; 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 second 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 items 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
SECOND QUARTER 2003
___________________
(millions of dollars, except per share amounts)
Second Quarter First Half
________________ _____________
2003 2002 2003 2002
____ ____ ____ ____
EARNINGS / EARNINGS PER SHARE
Total revenue 57,165 50,804 120,945 94,197
Total costs and other deduction 50,417 46,523 104,319 86,588
Income before income taxes $6,748 $4,281 $16,626 $7,609
Income taxes 2,578 1,652 5,966 2,917
Income from continuing operations $4,170 $2,629 $10,660 $4,692
Discontinued operations 0 11 0 38
Accounting change 0 0 550 0
Net income (U.S. GAAP) $4,170 $2,640 $11,210 $4,730
Net income per common share (dollars)
Income from continuing operations 0.63 0.39 1.60 0.69
Discontinued operations 0.00 0.01 0.00 0.01
Accounting change 0.00 0.00 0.08 0.00
Net income $0.63 $0.40 $1.68 $0.70
Net income per common share
- assuming dilution (dollars)
Income from continuing operations 0.62 0.38 1.59 0.68
Discontinued operations 0.00 0.01 0.00 0.01
Accounting change 0.00 0.00 0.08 0.00
Net income $0.62 $0.39 $1.67 $0.69
(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
SECOND QUARTER 2003
___________________
(millions of dollars, except per share amounts)
Second Quarter First Half
________________ _____________
2003 2002 2003 2002
____ ____ ____ ____
OTHER FINANCIAL DATA
Dividends on common stock
Total $1,667 $1,557 $3,208 $3,121
Per common share $0.25 $0.23 $0.48 $0.46
Millions of common shares outstanding
At June 30 6,652 6,757
Average 6,654 6,767 6,669 6,780
Average-assuming dilution 6,687 6,831 6,701 6,844
Shareholders' equity at June 30 $82,581 $75,118
Capital employed at June 30 $96,176 $90,385
Income and other taxes
Income taxes 2,578 1,652 5,966 2,917
Excise taxes 5,896 5,650 11,727 10,441
All other taxes 9,709 8,914 19,174 17,421
Total taxes $18,183 $16,216 $36,867 $30,779
ExxonMobil's share of income taxes
of equity companies: $181 $157 $510 $381
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
SECOND QUARTER 2003
FUNCTIONAL EARNINGS
___________________
(millions of dollars)
Second Quarter First Half
______________ __________
2003 2002 2003 2002
____ ____ ____ ____
Net Income (U.S. GAAP)
Upstream
United States 907 677 2,166 1,125
Non-U.S. 1,931 1,553 6,365 3,194
Downstream
United States 419 234 593 248
Non-U.S. 727 148 1,276 106
Chemicals
United States 128 87 144 157
Non-U.S. 311 182 582 244
Corporate and financing (253) (222) (466) (292)
Merger expenses 0 (30) 0 (90)
Income from continuing operations 4,170 2,629 10,660 4,692
Discontinued operations 0 11 0 38
Accounting change 0 0 550 0
Net income (U.S. GAAP) $4,170 $2,640 $11,210 $4,730
Merger Effects, Discontinued Operations, Accounting Change
and Other Special Items
Upstream
Non-U.S. 0 0 1,700 0
Merger expenses 0 (30) 0 (90)
Discontinued operations 0 11 0 38
Accounting change 0 0 550 0
Corporate total $0 ($19) $2,250 ($52)
Earnings Excluding Merger Effects, Discontinued Operations,
Accounting Change and Other Special Items
Upstream
United States 907 677 2,166 1,125
Non-U.S. 1,931 1,553 4,665 3,194
Downstream
United States 419 234 593 248
Non-U.S. 727 148 1,276 106
Chemicals
United States 128 87 144 157
Non-U.S. 311 182 582 244
Corporate and financing (253) (222) (466) (292)
Corporate total $4,170 $2,659 $8,960 $4,782
Note -- Prior periods amounts include reclassifications to reflect the
previously announced change in segment reporting. Earnings of divested coal
and copper mining businesses are reported as discontinued operations.
ATTACHMENT III
EXXON MOBIL CORPORATION
SECOND QUARTER 2003
___________________
Second Quarter First Half
______________ __________
2003 2002 2003 2002
____ ____ ____ ____
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 605 700 619 709
Canada 372 341 360 336
Europe 565 602 593 606
Asia-Pacific 240 254 236 261
Africa 399 348 406 346
Other Non-U.S. 297 250 277 260
Worldwide 2,478 2,495 2,491 2,518
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 2,306 2,373 2,344 2,432
Canada 906 1,024 918 1,044
Europe 3,524 3,324 4,915 4,502
Asia-Pacific 1,921 1,965 1,857 1,944
Other Non-U.S. 602 506 618 537
Worldwide 9,259 9,192 10,652 10,459
Oil-equivalent production (koebd)* 4,021 4,027 4,266 4,261
(continued)
*Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
SECOND QUARTER 2003
___________________
Second Quarter First Half
______________ __________
2003 2002 2003 2002
____ ____ ____ ____
Petroleum product sales (kbd)
United States 2,706 2,678 2,640 2,695
Canada 580 579 597 576
Europe 2,068 2,045 2,028 2,018
Asia-Pacific 1,566 1,391 1,685 1,458
Other Non-U.S. 880 876 880 875
Worldwide 7,800 7,569 7,830 7,622
Gasolines, naphthas 3,263 3,143 3,149 3,113
Heating oils, kerosene, diesel 2,284 2,173 2,400 2,278
Aviation fuels 643 674 652 668
Heavy fuels 628 559 635 579
Specialty products 982 1,020 994 984
Total 7,800 7,569 7,830 7,622
Refinery throughput (kbd)
United States 1,815 1,871 1,749 1,859
Canada 459 435 453 438
Europe 1,573 1,554 1,519 1,540
Asia-Pacific 1,347 1,263 1,426 1,316
Other Non-U.S. 297 220 294 226
Worldwide 5,491 5,343 5,441 5,379
Chemical product revenue
($ millions)
United States $2,486 $2,379 $5,085 $4,217
Non-U.S. $3,629 $2,883 $7,460 $5,342
Worldwide $6,115 $5,262 $12,545 $9,559
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,543 3,010 5,404 5,754
Non-U.S. 3,826 3,692 7,856 7,582
Worldwide 6,369 6,702 13,260 13,336
ATTACHMENT IV
EXXON MOBIL CORPORATION
SECOND QUARTER 2003
___________________
(millions of dollars)
Second Quarter First Half
______________ __________
2003 2002 2003 2002
____ ____ ____ ____
Capital and Exploration Expenditures
Upstream
United States 526 568 1,015 1,154
Non-U.S. 2,395 1,992 4,690 3,671
Total 2,921 2,560 5,705 4,825
Downstream
United States 333 250 641 399
Non-U.S. 380 335 653 578
Total 713 585 1,294 977
Chemicals, administrative and
discontinued operations
United States 107 137 170 330
Non-U.S. 90 111 158 235
Total 197 248 328 565
Worldwide $3,831 $3,393 $7,327 $6,367
Exploration expenses charged to income
included above
Consolidated affiliates
United States 39 48 74 114
Non-U.S. 138 176 245 323
Equity companies - ExxonMobil share
United States 1 0 1 0
Non-U.S. 4 4 16 6
Worldwide $182 $228 $336 $443
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
__________
$ 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
- Second Quarter 4,170 0.63