01—Abstract
Summary
Summary of the 10-K filed February 27, 2019. Cited figures are marked; the original filing is the authoritative source.
Exxon Mobil Corporation's 2018 10-K filing reveals a strong financial performance, with net income attributable to ExxonMobil reaching $20.84 billiona, a modest increase from $19.71 billion in 2017.
The company's sales and other operating revenue saw a significant jump to $279.3 billionb in 2018 from $237.2 billion in 2017, primarily driven by higher commodity prices. The Upstream segment continued to be the largest contributor to earnings, driven by favorable realizations, while the Downstream and Chemical segments also demonstrated solid performance, albeit with some margin pressure in chemicals due to increased capacity. Capital expenditures remained substantial at $25.9 billion, reflecting ongoing investments in major projects across its global portfolio, including significant spending in the U.S. Permian Basin and international ventures.
The company maintained a strong balance sheet with total assets of $346.2 billionc and managed its debt effectively, with a debt-to-capital ratio of 16.0%. ExxonMobil's commitment to returning value to shareholders is evident through its consistent dividend payments, which increased to $3.23 per share in 2018. The report also highlights the company's proactive approach to managing risks, including those related to commodity price volatility, climate change regulations, and cybersecurity.
02—Key points
Key Highlights
- Net income attributable to ExxonMobil was $20.84 billion for the year ended December 31, 2018, up from $19.71 billion in 2017.
- Sales and other operating revenue increased to $279.3 billion in 2018 from $237.2 billion in 2017, driven by higher commodity prices.
- Upstream segment earnings were $14.1 billion, an increase from $13.4 billion in 2017, primarily due to higher realizations.
- Capital and exploration expenditures totaled $25.9 billion in 2018, with plans for approximately $30 billion in 2019, reflecting continued investment in growth projects.
- The company maintained a strong financial position with $3.0 billion in cash and cash equivalents and manageable long-term debt.
- ExxonMobil declared a quarterly dividend of $0.82 per common share, payable March 11, 2019, an increase from previous periods.
- The company reported approximately 24.3 billion oil-equivalent barrels of proved reserves at year-end 2018.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2018filed February 27, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $279.33B$237.16B | +17.8% |
| R&D Expenses | $1.12B$1.06B | +5.0% |
| SG&A Expenses | $11.48B$10.65B | +7.8% |
| Operating Expenses | $259.26B$225.69B | +14.9% |
| Interest Expense | $766.00M$601.00M | +27.5% |
| Net Income | $20.84B$19.71B | +5.7% |
| EPS (Basic) | $4.88$4.63 | +5.4% |
| EPS (Diluted) | $4.88$4.63 | +5.4% |
| Shares Outstanding (Basic) | 4.27B4.26B | +0.3% |
05—Questions
Frequently Asked Questions
What was ExxonMobil's net income for fiscal year 2018?
ExxonMobil's net income attributable to ExxonMobil for the year ended December 31, 2018, was $20.84 billion.
How did the company's capital expenditures in 2018 compare to its plans?
ExxonMobil's capital and exploration expenditures in 2018 were $25.9 billion, aligning with its strategy to invest in its global portfolio. The company anticipated an investment level of approximately $30 billion for 2019.
What is the company's outlook on global energy demand and its impact on the business?
ExxonMobil's Long-Term Business Outlook projects a 25 percent rise in global energy demand from 2016 to 2040, driven by population growth and economic development, particularly in non-OECD countries. The company expects oil to remain the largest source of energy, with natural gas growing the most of any primary energy type. This growth underpins ExxonMobil's long-term investment strategy.
What were the key drivers for the increase in revenue in 2018?
The increase in sales and other operating revenue to $279.3 billion in 2018 from $237.2 billion in 2017 was primarily driven by higher commodity prices, which boosted realizations across its business segments.
06—Continue