IRVING, Texas – Exxon Mobil Corporation (NYSE:XOM):
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Second |
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Third Quarter |
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Quarter |
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First Nine Months |
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2020 |
2019 |
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2020 |
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2020 |
2019 |
Results Summary |
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(Dollars in millions, except per share data) |
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Earnings/(Loss) (U.S. GAAP) |
(680) |
3,170 |
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(1,080) |
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(2,370) |
8,650 |
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Earnings/(Loss) Per Common Share |
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Assuming Dilution |
(0.15) |
0.75 |
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(0.26) |
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(0.55) |
2.03 |
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Identified Items Per Common Share |
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Assuming Dilution |
0.03 |
0.07 |
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0.44 |
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(0.20) |
0.19 |
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Earnings/(Loss) Excluding Identified Items |
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Per Common Share Assuming Dilution |
(0.18) |
0.68 |
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(0.70) |
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(0.35) |
1.84 |
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Capital and Exploration Expenditures |
4,133 |
7,719 |
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5,327 |
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16,603 |
22,688 |
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Exxon Mobil Corporation today announced an estimated third quarter 2020 loss of $680 million, or $0.15 per share assuming dilution. Third quarter capital and exploration expenditures were $4.1 billion, bringing year-to-date spending to $16.6 billion, more than $6 billion lower than the prior year period.
Oil-equivalent production was 3.7 million barrels per day, up 1 percent from the second quarter of 2020. Production continued to reflect COVID-19 demand impacts, including economic and government mandated curtailments. Excluding entitlement effects, divestments, and government mandates, liquids production increased 2 percent, while natural gas volumes decreased 1 percent.
“We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend,” said Darren W. Woods, chairman and chief executive officer. “We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle.”
The company’s preliminary 2021 capital program, which will be reviewed by the board of directors in the fourth quarter, is expected to be in the range of $16 billion to $19 billion, a reduction from the 2020 target of $23 billion announced in April. The company expects to identify further structural efficiencies as it continues previously announced country-by-country reviews.
Third Quarter 2020 Business Highlights
Upstream
Downstream
Chemical
Strengthening the Portfolio
Disciplined Investing and Cost Management
Advancing Innovative Technologies and Products
Results and Volume Summary |
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Millions of Dollars |
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3Q |
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3Q |
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(unless noted) |
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2020 |
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2019 |
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Change |
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Comments |
Upstream |
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U.S. |
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(681) |
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37 |
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-718 |
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Lower prices partly offset by reduced expenses |
Non-U.S. |
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298 |
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2,131 |
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-1,833 |
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Lower prices and one-time tax items, partly offset by reduced expenses |
Total |
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(383) |
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2,168 |
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-2,551 |
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Prices -2,630, volume -60, expenses +500, other -350, identified item -10 |
Production (koebd) |
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3,672 |
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3,899 |
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-227 |
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Liquids -106 kbd: higher entitlements, lower downtime/maintenance, and growth, more than offset by government mandates, divestments, and lower demand including economic curtailments Gas -729 mcfd: higher entitlements more than offset by divestments, higher downtime/maintenance, and decline |
Downstream |
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U.S. |
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(136) |
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673 |
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-809 |
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Lower margins on weaker industry refining conditions, partly offset by reduced expenses and improved manufacturing |
Non-U.S. |
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(95) |
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557 |
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-652 |
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Lower margins on weaker industry refining conditions and lower market demand, partly offset by reduced expenses and improved manufacturing |
Total |
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(231) |
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1,230 |
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-1,461 |
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Margins -1,880, market demand -80, expenses +360, other +140 |
Petroleum Product Sales (kbd) |
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5,023 |
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5,504 |
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-481 |
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Chemical |
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U.S. |
|
357 |
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53 |
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+304 |
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Higher margins and lower expenses; favorable identified item (noncash inventory valuation +29) |
Non-U.S. |
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304 |
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188 |
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+116 |
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Lower margins more than offset by lower expenses and favorable identified item (noncash inventory valuation +86) |
Total |
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661 |
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241 |
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+420 |
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Margins +70, volumes +30, expenses +170, identified items +120, forex/other +30 |
Prime Product Sales (kt) |
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6,624 |
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6,476 |
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+148 |
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Corporate and financing |
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(727) |
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(469) |
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-258 |
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Absence of prior year identified item (-307, tax) |
Results and Volume Summary |
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Millions of Dollars |
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3Q |
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2Q |
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(unless noted) |
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2020 |
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2020 |
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Change |
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Comments |
Upstream |
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U.S. |
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(681) |
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(1,197) |
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+516 |
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Higher liquids prices and lower expenses; unfavorable identified item (noncash inventory valuation -45) |
Non-U.S. |
|
298 |
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(454) |
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+752 |
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Higher liquids prices partly offset by lower LNG prices; favorable volume/mix and lower expenses; unfavorable identified item (noncash inventory valuation -179) |
Total |
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(383) |
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(1,651) |
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+1,268 |
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Prices +1,390, volume +140, expenses +110, identified items -220, other -150 |
Production (koebd) |
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3,672 |
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3,638 |
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+34 |
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Liquids -20 kbd: higher demand including reduced economic curtailments, more than offset by higher downtime/maintenance, lower entitlements and decline Gas +326 mcfd: higher entitlements and demand including reduced economic curtailments, partly offset by decline |
Downstream |
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U.S. |
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(136) |
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(101) |
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-35 |
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Higher margins with favorable trading activity more than offsetting weaker industry refining conditions, higher market demand, and improved manufacturing more than offset by unfavorable identified item (noncash inventory valuation -401) |
Non-U.S. |
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(95) |
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1,077 |
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-1,172 |
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Lower margins on weaker industry refining conditions more than offset by higher market demand and lower expenses; unfavorable forex and unfavorable identified item (noncash inventory valuation -1,184) |
Total |
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(231) |
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976 |
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-1,207 |
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Margins +70, market demand +300, expenses +60, identified items -1,580, other -60 |
Petroleum Product Sales (kbd) |
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5,023 |
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4,437 |
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+586 |
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Chemical |
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U.S. |
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357 |
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171 |
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+186 |
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Higher volumes; favorable identified item (noncash inventory valuation +58) |
Non-U.S. |
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304 |
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296 |
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+8 |
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Lower margins more than offset by higher volumes and lower expenses; unfavorable identified item (noncash inventory valuation -58) |
Total |
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661 |
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467 |
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+194 |
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Margins -80, volumes +220, expenses +40, forex/other +10 |
Prime Product Sales (kt) |
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6,624 |
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5,945 |
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+679 |
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Corporate and financing |
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(727) |
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(872) |
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+145 |
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Lower financing and corporate costs |
Results and Volume Summary |
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Millions of Dollars |
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YTD |
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YTD |
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(unless noted) |
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2020 |
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2019 |
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Change |
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Comments |
Upstream |
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U.S. |
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(2,582) |
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468 |
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-3,050 |
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Lower prices partly offset by reduced expenses; unfavorable identified item (impairment -315) |
Non-U.S. |
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1,084 |
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7,837 |
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-6,753 |
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Lower prices and volumes, partly offset by reduced expenses and favorable foreign exchange effects; unfavorable identified items (noncash inventory valuation -61, impairment -41, prior year tax item -487) |
Total |
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(1,498) |
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8,305 |
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-9,803 |
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Prices -9,050, volume -320, expenses +630, identified items -900, other -160 |
Production (koebd) |
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3,785 |
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3,929 |
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-144 |
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Liquids -12 kbd: growth, higher entitlements, and lower downtime/maintenance, more than offset by divestments, government mandates, and lower demand including economic curtailments Gas -794 mcfd: higher entitlements and growth, more than offset by divestments and lower demand including economic curtailments |
Downstream |
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U.S. |
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(338) |
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822 |
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-1,160 |
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Lower margins on weaker industry refining conditions and reduced market demand partly offset by lower expenses and improved manufacturing |
Non-U.S. |
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472 |
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603 |
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-131 |
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Lower margins on weaker industry refining conditions and reduced market demand partly offset by improved manufacturing and lower expenses; unfavorable identified items (-326, mainly impairment) |
Total |
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134 |
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1,425 |
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-1,291 |
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Margins -2,260, market demand -520, manufacturing +920, expenses +860, other +40, identified items -330 |
Petroleum Product Sales (kbd) |
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4,916 |
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5,443 |
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-527 |
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Chemical |
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U.S. |
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816 |
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208 |
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+608 |
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Higher margins partly offset by lower volumes; lower expenses; unfavorable identified item (-90, impairment) |
Non-U.S. |
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456 |
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739 |
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-283 |
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Lower margins and volumes partly offset by lower expenses |
Total |
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1,272 |
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947 |
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+325 |
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Margins +190, volumes -220, expenses +380, identified items -90, forex/other +60 |
Prime Product Sales (kt) |
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18,806 |
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19,947 |
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-1,141 |
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Corporate and financing |
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(2,278) |
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(2,027) |
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-251 |
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Absence of prior year identified items (-332, tax) and higher financing costs partly offset by lower corporate costs
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Cash Flow from Operations and Asset Sales excluding Working Capital |
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Millions of Dollars |
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3Q |
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2020 |
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Comments |
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Net income (loss) including noncontrolling interests |
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(709) |
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Including ($29) million noncontrolling interests |
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Depreciation |
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4,983 |
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Noncash inventory adjustment |
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(115) |
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Including ($2) million noncontrolling interests |
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Changes in operational working capital |
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863 |
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Mainly inventory draw |
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Other |
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(633) |
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Includes changes in deferred income taxes |
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Cash Flow from Operating |
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4,389 |
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Activities (U.S. GAAP) |
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Asset sales |
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100 |
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Cash Flow from Operations |
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4,489 |
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and Asset Sales |
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Changes in operational working capital |
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(863) |
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Cash Flow from Operations |
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3,626 |
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and Asset Sales excluding Working Capital |
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Millions of Dollars |
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YTD |
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2020 |
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Comments |
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Net income (loss) including noncontrolling interests |
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(2,648) |
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Including ($278) million noncontrolling interests |
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Depreciation |
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15,718 |
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Including impairment impacts |
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Noncash inventory adjustment |
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61 |
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Changes in operational working capital |
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(1,539) |
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Mainly unfavorable payables |
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Other |
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(929) |
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Includes changes in deferred income taxes |
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Cash Flow from Operating |
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10,663 |
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Activities (U.S. GAAP) |
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Asset sales |
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229 |
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Cash Flow from Operations |
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10,892 |
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and Asset Sales |
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Changes in operational working capital |
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1,539 |
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Cash Flow from Operations |
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12,431 |
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and Asset Sales excluding Working Capital |
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First Nine Months 2020 Financial Updates
During the first nine months of 2020, Exxon Mobil Corporation purchased 6 million shares of its common stock for the treasury at a gross cost of $305 million. These shares were acquired to offset dilution in conjunction with the company’s benefit plans and programs. The corporation will continue to acquire shares to offset dilution in conjunction with its benefit plans and programs.
ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on October 30, 2020. To listen to the event or access an archived replay, please visit www.exxonmobil.com.