Summary
Exxon Mobil Corporation (XOM) reported a significant increase in net income for the second quarter and first six months of 2003 compared to the same periods in 2002. Net income for the second quarter rose to $4.17 billion ($0.63 per share), a substantial improvement from $2.64 billion ($0.40 per share) in the prior year. This strong performance was driven by higher crude oil and natural gas prices, leading to improved earnings across all business segments, particularly in Upstream and Downstream operations. The company also saw robust performance in its Chemicals segment, reaching its highest earnings level since 1998. For the first six months of 2003, net income more than doubled to $11.21 billion ($1.68 per share) from $4.73 billion ($0.70 per share) in the first half of 2002. This period's results were bolstered by a one-time pre-tax gain of $1.7 billion from the transfer of shares in Ruhrgas AG. Despite a flat oil-equivalent production volume, the company benefited from increased European gas demand and contributions from new projects. Exxon Mobil continued its strategic investments, with capital and exploration expenditures increasing, while also actively managing its capital structure through share repurchases and a reduction in total debt.
Key Highlights
- 1Net income for Q2 2003 was $4.17 billion, a 58% increase from $2.64 billion in Q2 2002.
- 2Net income for the first six months of 2003 was $11.21 billion, a 137% increase from $4.73 billion in the same period of 2002.
- 3Upstream earnings increased significantly due to higher crude oil and natural gas realizations.
- 4Downstream earnings showed substantial improvement driven by stronger refining and marketing margins.
- 5Chemicals earnings reached their highest level since 1998.
- 6Cash flow from operations was robust, providing $15.995 billion in the first six months of 2003.
- 7The company repurchased $2.385 billion of its common stock in the first half of 2003, reducing outstanding shares.