ExxonMobil, the largest US oil and gas company, yesterday reported a better-than-expected 53 per cent rise in net income to $4.1 billion (€3.81 billion), or 60 cents per share, in the fourth quarter, on higher natural gas prices and improvements in worldwide refining and marketing margins.
For the full year of 2002, however, the company's net income fell 25 per cent to $11.5 billion, reflecting lower natural gas realisations and poor market conditions in its downstream operations.
The results confirmed analyst views that ExxonMobil was not at a point where it had to undertake the soul-searching that was consuming other super-majors, such as BP, which recently suffered the embarrassment of having to cut its production forecasts. Analysts said ExxonMobil does not make elaborate promises so it does not disappoint.
Thomson First Call put the consensus estimate at 50 cents a share, 10 cents below the figure ExxonMobil reported.
Revenue for the fourth quarter totalled $56.2 billion, up 18 per cent, enabling capital and exploration expenditures of $4 billion, up $162 million compared with the year-earlier period. Revenue for the full year was $204.5 billion, down 4 per cent.
ExxonMobil's upstream earnings improved $510 million from the third quarter, on higher natural gas prices and seasonally higher volumes.
Downstream earnings increased $696 million because of improvements in worldwide refining and marketing margins from a weak third quarter. A reduction in inventories also helped.
The chemicals segment, however, reported a $277 million drop in earnings, compared with the third quarter, due to weaker worldwide margins.
Because of the size of the company, analysts said ExxonMobil did not offer volume growth but rather capacity growth on improvements in operations.
For the full year, ExxonMobil chairman Mr Lee Raymond said operating expenses declined $300 million over 2001, on lower energy prices and additional efficiencies in all business lines. - (Financial Times Service)
