10-QPeriod: Q3 FY2008

EXXON MOBIL CORP Quarterly Report for Q3 Ended Sep 30, 2008

Filed November 4, 2008For Securities:XOM

Summary

Exxon Mobil Corporation (XOM) reported a strong third quarter and a record first nine months of 2008, driven by robust upstream earnings and favorable commodity prices. Net income for the third quarter of 2008 reached $14.83 billion, a significant increase of 58% compared to the same period in 2007. This performance was bolstered by a $1.62 billion gain from the sale of a German gas transportation business and was partially offset by a $170 million charge related to the Exxon Valdez litigation. Despite these positive results, the company incurred additional costs and reduced volumes due to Hurricanes Gustav and Ike, impacting U.S. Gulf Coast operations. The company's financial health remains strong, with total assets growing to $256.2 billion. ExxonMobil continued its aggressive share repurchase program, buying back $8.7 billion in the third quarter and $26.9 billion year-to-date, reinforcing its commitment to returning value to shareholders. Management expects these hurricane-related impacts to reduce fourth-quarter earnings by approximately $500 million. Overall, the results reflect the company's resilience and its ability to generate substantial cash flow, even amidst challenging operational environments.

Financial Highlights

21 data points
Beta

Net Income

$14.83B

EPS (Diluted)

$2.85

Cash & Equivalents

$36.67B

Free Cash Flow

$9.26B

Financial Statements
Beta
SG&A Expenses$3.82B
Operating Expenses$111.04B
Interest Expense$318.00M
Net Income$14.83B
EPS (Basic)$2.86
EPS (Diluted)$2.85

Key Highlights

  • 1Record net income for the third quarter of 2008 at $14.83 billion, up 58% year-over-year.
  • 2Significant increase in Upstream earnings, driven by higher crude oil and natural gas prices.
  • 3Completed the sale of its German natural gas transportation business, resulting in a $1.62 billion gain.
  • 4Shareholder returns remained high, with $8.7 billion in share repurchases during Q3 2008 and $10.1 billion returned in total (dividends and buybacks) in the quarter.
  • 5Operating income was impacted by Hurricanes Gustav and Ike, with estimated negative effects on Q4 earnings of approximately $500 million.
  • 6Total cash and cash equivalents stood at a strong $36.7 billion at the end of Q3 2008.
  • 7Capital expenditures increased by 26% year-over-year in Q3 2008, indicating continued investment in growth projects.

Frequently Asked Questions

Exxon Mobil Corporation reported a substantial increase in net income for the third quarter of 2008, reaching $14.83 billion, which is a 58% increase compared to $9.41 billion in the third quarter of 2007. This growth was primarily driven by higher upstream earnings, a gain from asset sales, and an ongoing share repurchase program which improved earnings per share.

The primary drivers for the increased earnings were significantly higher crude oil and natural gas realizations, a $1.62 billion gain from the sale of the German gas transportation business, and strong performance in the Upstream segment. These factors, combined with ongoing share repurchases, boosted overall profitability.

Hurricanes Gustav and Ike had a notable impact on U.S. Gulf Coast operations, causing temporary shutdowns and damage. While the company responded effectively to maintain supplies, these events led to reduced upstream volumes and higher costs. The company estimates that these hurricane-related impacts will reduce fourth-quarter earnings by approximately $500 million.

ExxonMobil continues to prioritize returning capital to shareholders through dividends and share repurchases. In the third quarter of 2008, the company distributed a total of $10.1 billion, comprising $2.1 billion in dividends and $8.0 billion in share buybacks. The company also repurchased $26.9 billion in the first nine months of 2008, indicating a consistent strategy of reducing outstanding shares.