EagleTed
05-01-2003, 09:59 AM
From http://www.Marketwatch.com:
NEW YORK, May 1 (Reuters) - Exxon Mobil Corp. (XOM) , the world's largest publicly traded oil company, on Thursday said its first-quarter profit more than tripled, boosted by surging oil and gas prices.
The Irving, Texas, company reported first-quarter net income of $7.04 billion, or $1.05 a share, compared with net income of $2.09 billion, or 30 cents a share, in the year-ago quarter.
Excluding special items, Exxon posted earnings per share of 71 cents. On that basis, analysts forecast average earnings of 70 cents a share, according to research firm Thomson First Call.
Revenue rose to $63.78 billion from $43.39 billion in the prior-year quarter.
Supply concerns linked to the war in Iraq, a strike in Venezuela and civil unrest in Nigeria -- all key oil-producing nations -- sent crude oil prices up 57 percent in the first quarter, with benchmark West Texas Intermediate spot prices averaging $33.94 a barrel.
Natural gas prices more than doubled in the same period, driven by concerns about dwindling supplies and tight inventories.
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 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."
NEW YORK, May 1 (Reuters) - Exxon Mobil Corp. (XOM) , the world's largest publicly traded oil company, on Thursday said its first-quarter profit more than tripled, boosted by surging oil and gas prices.
The Irving, Texas, company reported first-quarter net income of $7.04 billion, or $1.05 a share, compared with net income of $2.09 billion, or 30 cents a share, in the year-ago quarter.
Excluding special items, Exxon posted earnings per share of 71 cents. On that basis, analysts forecast average earnings of 70 cents a share, according to research firm Thomson First Call.
Revenue rose to $63.78 billion from $43.39 billion in the prior-year quarter.
Supply concerns linked to the war in Iraq, a strike in Venezuela and civil unrest in Nigeria -- all key oil-producing nations -- sent crude oil prices up 57 percent in the first quarter, with benchmark West Texas Intermediate spot prices averaging $33.94 a barrel.
Natural gas prices more than doubled in the same period, driven by concerns about dwindling supplies and tight inventories.
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 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."