Summary
ExxonMobil Corporation reported a significant year-over-year decline in net income for the first quarter of 2002, with net income falling to $2.09 billion ($0.30 per share) from $5.00 billion ($0.72 per share) in the same period of 2001. This decrease was primarily driven by weakened conditions across all business segments, including lower crude oil and natural gas prices, and significantly weaker refining and marketing margins, creating the most challenging downstream environment since the mid-1980s. Despite these headwinds, the company increased capital and exploration expenditures, signaling a continued commitment to investing in profitable growth, particularly within its upstream segment. The company's balance sheet remained strong, with total assets at $142.04 billion and total liabilities at $69.67 billion as of March 31, 2002. Shareholders' equity stood at $72.37 billion. ExxonMobil also continued its share repurchase program, acquiring 35 million shares in the quarter to offset dilution and reduce outstanding stock. Management indicated that industry conditions were showing signs of improvement in both upstream and downstream segments in the second quarter.
Key Highlights
- 1Net income decreased significantly to $2.09 billion in Q1 2002 from $5.00 billion in Q1 2001.
- 2Earnings per share (EPS) dropped to $0.30 for Q1 2002 from $0.72 for Q1 2001.
- 3Total revenue declined to $43.53 billion in Q1 2002 from $57.30 billion in Q1 2001.
- 4Capital and exploration expenditures increased by 18% to $2.97 billion in Q1 2002, with a focus on upstream growth.
- 5Downstream segment experienced historically weak refining and marketing margins, the worst since the mid-1980s.
- 6Company continued share repurchases, acquiring 35 million shares for $1.45 billion in Q1 2002.
- 7Management noted early signs of industry improvement in both upstream and downstream segments in Q2 2002.