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, JANUARY 29, 2004
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
FOURTH QUARTER AND 2003 RESULTS
Net Income
$ Millions
$ Per Common Share
Assuming Dilution
1.01
0.60
3.23
1.68
Earnings Excluding Merger Effects,
Discontinued Operations, Accounting
Change and Other Special Items
$ Millions
4,420
3,790
17,030
11,501
$ Per Common Share
Assuming Dilution
Revenue - $ Millions
Capital & Exploration
Expenditures - $ Millions
IRVING, TX, January 29 -- Exxon Mobil Corporation today reported fourth quarter results. Net income was $6,650 million ($1.01 per share), an increase of $2,560 million from the fourth quarter of 2002, and included a special item of $2,230 million relating to the settlement of a long-running U.S. tax dispute. Excluding merger effects, discontinued operations and special items, earnings increased $630 million from the fourth quarter of 2002.
Revenue for the fourth quarter of 2003 totaled $65,952 million compared with $56,211 million in 2002. Capital and exploration expenditures of $4,360 million in the fourth quarter of 2003 were up $335 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"Strong fourth quarter earnings continued to reflect the improved results we have seen throughout 2003.
"ExxonMobil's full year 2003 net income was a record $21,510 million. Full year 2003 earnings excluding special items and a required accounting change in the first quarter were also a record at $17,030 million, representing much stronger results in all areas of the business.
"Fourth quarter upstream earnings were $3,269 million, an increase of $267 million from 2002 results. The increase in earnings reflected higher average crude and natural gas prices.
"Liquids volumes increased 4% in the quarter due to production from new projects in West Africa and Norway. On an oil-equivalent basis, production was down 1% with contributions from new projects more than offset by natural field decline of both oil and gas.
"Plans for long-term capacity increases remain on track as reflected by strong liquids volumes growth in the fourth quarter and higher capital spending, which for the year is up over 15%.
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"Downstream earnings of $736 million, were down $85 million from last year's fourth quarter reflecting weaker marketing results.
"Chemicals earnings of $476 million increased $400 million from last year's fourth quarter due to improved margins and favorable foreign exchange effects.
"ExxonMobil continued its active investment program in the fourth quarter, spending $4,360 million on capital and exploration projects, compared with $4,025 million last year, reflecting continued growth in upstream spending.
"During the quarter, the corporation acquired 50 million shares at a gross cost of $1,832 million to offset the dilution associated with benefit plans and to reduce common stock outstanding."
Additional comments on earnings for the major operating segments follow:
Fourth Quarter 2003 vs. Fourth Quarter 2002
Upstream earnings were $3,269 million, up $267 million from the fourth quarter 2002, reflecting higher crude oil and natural gas realizations.
Liquids production of 2,595 kbd (thousands of barrels per day) increased 4% from 2,497 kbd in the fourth quarter of 2002. Higher production from new projects in West Africa and Norway, and reduced OPEC quota restrictions, were partly offset by natural field decline in mature areas.
Fourth quarter natural gas production was 10,858 mcfd (millions of cubic feet per day) compared with 11,667 mcfd last year. Contributions from new projects and work
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programs were more than offset by lower demand and operational outages at partner operated facilities in Europe, natural field decline in mature areas and reduced entitlement effects.
Earnings from U.S. upstream operations were $856 million, up $99 million. Non-U.S. upstream earnings of $2,413 million were $168 million higher than last year.
Downstream earnings of $736 million were down $85 million from the fourth quarter of last year reflecting weaker marketing results. Petroleum product sales were 8,237 kbd, 220 kbd higher than last year's fourth quarter.
U.S. downstream earnings were $384 million, down $19 million. Non-U.S. downstream earnings of $352 million were $66 million lower than last year's fourth quarter.
Chemicals earnings of $476 million were up $400 million from last year due to stronger margins, reduced operating expenses, favorable foreign exchange effects and positive inventory impacts. Prime product sales of 6,692 kt (thousands of metric tons) were up 78 kt.
Corporate and financing expenses of $61 million, excluding the special tax settlement item, decreased by $48 million. During the period, the company continued to benefit from favorable tax related items.
During the fourth quarter of 2003, Exxon Mobil Corporation purchased 50 million shares of its common stock for the treasury at a gross cost of $1,832 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
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reduced from 6,610 million at the end of the third quarter of 2003 to 6,568 million at the end of the fourth 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.
Full Year 2003 vs. Full Year 2002
Net income of $21,510 million ($3.23 per share) was a record and increased $10,050 million from 2002. Excluding a required accounting change, special items, merger effects and discontinued operations, earnings of $17,030 million ($2.56 per share) were also a record and were $5,529 million higher than 2002. Net income for 2003 included a $550 million positive impact for the required adoption of FAS 143 relating to accounting for asset retirement obligations. Net income also included one-time special items of $2,230 million relating to the positive settlement of a long-running U.S. tax dispute and $1,700 million from a gain on the transfer of shares in Ruhrgas AG, a German gas transmission company. Net income for 2002 included $275 million of after-tax merger expenses, $449 million in earnings from discontinued operations and a special charge of $215 million related to the deferred income tax effect of the 10% supplementary U.K. tax on North Sea operations.
Upstream earnings, excluding special items, of $12,802 million increased $2,989 million due to higher liquids and natural gas realizations. Excluding the effects of operational outages in the North Sea and West Africa, the national strike in Venezuela and price related entitlement effects, total oil and natural gas producible volumes were up 1%. Actual oil-equivalent production, including these impacts, was down 1%.
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Liquids production of 2,516 kbd increased 20 kbd from 2002. Higher production in West Africa, Norway and Canada and lower OPEC-driven quota constraints, were partly offset by natural field decline and the impact of operational problems in the North Sea and West Africa which mainly occurred in the second quarter of 2003.
Natural gas production of 10,119 mcfd decreased 333 mcfd from 2002. Higher demand in the first half of the year in Europe and contributions from new projects and work programs were more than offset by natural field decline, reduced entitlements and operational outages in the North Sea.
Earnings from U.S. upstream operations for 2003 were $3,905 million, an increase of $1,381 million. Earnings outside the U.S., excluding the effects of special items, were $8,897 million, $1,608 million higher than last year.
Downstream earnings of $3,516 million increased by $2,216 million from 2002 reflecting higher worldwide refining and marketing margins. Petroleum product sales of 7,957 kbd compared with 7,757 kbd in 2002.
U.S. downstream earnings were $1,348 million, up $655 million. Non-U.S. downstream earnings of $2,168 million were $1,561 million higher than last year.
Chemicals earnings of $1,432 million were up $602 million from 2002 due to improved margins and favorable foreign exchange effects. Prime product sales of 26,567 kt were down 39 kt.
Corporate and financing expenses, excluding special items, of $720 million increased by $278 million mainly due to higher U.S. pension costs.
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During 2003, Exxon Mobil Corporation purchased 163 million shares of its common stock for the treasury at a gross cost of $5,881 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.
ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. central time on January 29, 2004. To listen to the event live or in archive, go to our website at www.exxonmobil.com.
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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 fourth quarter press release includes both net income and earnings excluding a required accounting change, special items, 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
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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.
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ATTACHMENT I
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
(millions of dollars, except per share amounts)
EARNINGS / EARNINGS PER SHARE
Total revenue
65,952
56,211
246,738
204,506
Total costs and other deductions
56,574
50,794
214,772
186,996
Income before income taxes
$9,378
$5,417
$31,966
$17,510
Income taxes
2,728
1,727
11,006
6,499
Income from continuing operations
$6,650
$3,690
$20,960
$11,011
Discontinued operations
0
400
0
449
Accounting change
0
0
550
0
Net income (U.S. GAAP)
$6,650
$4,090
$21,510
$11,460
Net income per common share (dollars)
Income from continuing operations
1.01
0.54
3.16
1.62
Discontinued operations
0.00
0.06
0.00
0.07
Accounting change
0.00
0.00
0.08
0.00
Net income
$1.01
$0.60
$3.24
$1.69
Net income per common share
- assuming dilution (dollars)
Income from continuing operations
1.01
0.54
3.15
1.61
Discontinued operations
0.00
0.06
0.00
0.07
Accounting change
0.00
0.00
0.08
0.00
Net income
$1.01
$0.60
$3.23
$1.68
(continued)
ATTACHMENT I (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
(millions of dollars, except per share amounts)
OTHER FINANCIAL DATA
Dividends on common stock
Total
$1,649
$1,545
$6,515
$6,217
Per common share
Millions of common shares outstanding
Average
Average-assuming dilution
6,612
6,755
6,662
6,803
Shareholders' equity at December 31
Capital employed at December 31
Income and other taxes
Income taxes
Excise taxes
All other taxes
Total taxes
ExxonMobil's share of income taxes
of equity companies:
ATTACHMENT II
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
FUNCTIONAL EARNINGS
(millions of dollars)
Net Income (U.S. GAAP)
Upstream
United States
Non-U.S.
Downstream
United States
Non-U.S.
Chemicals
United States
Non-U.S.
Corporate and financing
Merger expenses
0
(100)
0
(275)
Income from continuing operations
6,650
3,690
20,960
11,011
Discontinued operations
0
400
0
449
Accounting change
0
0
550
0
Net income (U.S. GAAP)
Merger Effects, Discontinued Operations, Accounting Change and Other Special Items
Upstream
Non-U.S.
0
0
1,700
(215)
Corporate and financing
2,230
0
2,230
0
Merger expenses
Discontinued operations
0
400
0
449
Accounting change
0
0
550
0
Corporate total
Earnings Excluding Merger Effects, Discontinued Operations,
Accounting Change and Other Special Items
Upstream
United States
856
757
3,905
2,524
Non-U.S.
2,413
2,245
8,897
7,289
Downstream
United States
384
403
1,348
693
Non-U.S.
352
418
2,168
607
Chemicals
United States
212
71
381
384
Non-U.S.
264
5
1,051
446
Corporate and financing
(61)
(109)
(720)
(442)
Corporate total
$4,420
$3,790
$17,030
$11,501
ATTACHMENT III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States
Canada
Europe
Asia-Pacific
236
246
237
260
Africa
500
352
442
349
Other Non-U.S.
Worldwide
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States
Canada
Europe
Asia-Pacific
1,711
2,015
1,803
2,019
Other Non-U.S.
Worldwide
Oil-equivalent production (koebd)*
4,405
4,442
4,203
4,238
(continued)
*Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
Petroleum product sales (kbd)
United States
Canada
Europe
Asia-Pacific
1,693
1,581
1,675
1,503
Other Non-U.S.
Worldwide
Gasolines, naphthas
Heating oils, kerosene, diesel
Aviation fuels
Heavy fuels
Specialty products
Total
Refinery throughput (kbd)
United States
Canada
Europe
Asia-Pacific
1,345
1,449
1,390
1,379
Other Non-U.S.
Worldwide
Chemical product revenue
($ millions)
United States
Non-U.S.
Worldwide
Chemical prime product sales,
thousands of metric tons (kt)
United States
2,717
2,783
10,740
11,386
Non-U.S.
3,975
3,831
15,827
15,220
Worldwide
6,692
6,614
26,567
26,606
ATTACHMENT IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2003
(millions of dollars)
Capital and Exploration Expenditures
Upstream
United States
Non-U.S.
2,733
2,297
9,863
8,037
Total
3,304
2,881
11,988
10,394
Downstream
United States
291
324
1,244
980
Non-U.S.
528
515
1,537
1,470
Total
819
839
2,781
2,450
Chemicals, administrative and
discontinued operations
United States
133
151
397
620
Non-U.S.
104
154
359
491
Total
237
305
756
1,111
Worldwide
Exploration expenses charged to income
included above
Consolidated affiliates
United States
Non-U.S.
Equity companies - ExxonMobil share
United States
0
0
1
0
Non-U.S.
Worldwide
ATTACHMENT V
EXXON MOBIL CORPORATION
NET INCOME
$ Millions
Per Common Share
1999
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2000
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2001
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2002
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2003
-
First Quarter