10-QPeriod: Q1 FY2003

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2003

Filed May 14, 2003For Securities:XOM

Summary

Exxon Mobil Corporation (XOM) reported a significant increase in net income for the first quarter of 2003, reaching $7.04 billion, a substantial rise from $2.09 billion in the same period of 2002. This strong performance was driven by higher crude oil and natural gas prices, improved downstream and chemical segment results, and a notable one-time gain from the transfer of shares in German gas transmission company Ruhrgas AG. The company's revenue also saw a considerable jump to $63.78 billion from $43.39 billion in the prior year, reflecting these favorable market conditions and operational improvements. Financially, ExxonMobil maintained a robust position, with operating cash flow increasing significantly. The company continued its active investment program, with capital and exploration expenditures rising to support long-term growth projects. While overall debt levels remained stable, the company actively managed its share count by repurchasing shares to offset dilution and reduce outstanding stock. Investors can note the company's continued focus on operational efficiency and strategic asset management.

Key Highlights

  • 1Net income for Q1 2003 surged to $7.04 billion, up from $2.09 billion in Q1 2002.
  • 2Total revenue increased significantly to $63.78 billion in Q1 2003 from $43.39 billion in Q1 2002.
  • 3A one-time gain of $1.7 billion from the transfer of Ruhrgas AG shares boosted upstream earnings.
  • 4Upstream earnings benefited from higher crude oil and natural gas realizations.
  • 5Downstream and Chemicals segments showed improved profitability compared to the prior year.
  • 6Capital and exploration expenditures increased to $3.496 billion in Q1 2003 from $2.974 billion in Q1 2002.
  • 7The company repurchased 35 million shares of common stock for $1.191 billion in Q1 2003.

Frequently Asked Questions

The primary drivers were significantly higher crude oil and natural gas prices, which boosted upstream earnings. Additionally, improved industry conditions led to better results in the downstream and chemicals segments. A substantial one-time gain of $1.7 billion from the transfer of shares in Ruhrgas AG also significantly contributed to the net income.

Capital and exploration expenditures increased to $3.496 billion in the first quarter of 2003, up from $2.974 billion in the same period of 2002. This reflects the company's ongoing active investment program focused on long-term growth projects, particularly in upstream activities.

ExxonMobil adopted Financial Accounting Standards Board Statement No. 143 (FAS 143) for accounting for asset retirement obligations. This adoption resulted in a positive $550 million impact on net income for the first quarter of 2003, primarily due to a change in the method of accruing for site restoration costs.

Yes, ExxonMobil repurchased 35 million shares of its common stock at a gross cost of $1.191 billion. These purchases were made to offset dilution from company benefit plans and programs, and to reduce the overall number of common shares outstanding.