10-QPeriod: Q1 FY2010

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 6, 2010For Securities:XOM

Summary

ExxonMobil Corporation's first quarter 2010 results showed a significant improvement in profitability compared to the same period in 2009, with net income attributable to ExxonMobil increasing by 38% to $6.3 billion. This surge in earnings was primarily driven by higher crude oil prices and improved chemical margins, which offset weaker downstream industry margins. The company also demonstrated strong operational execution, with upstream earnings increasing substantially due to favorable commodity prices and production volumes. Investors should note the company's continued commitment to returning capital to shareholders through dividends and share repurchases, alongside substantial investment in capital and exploration expenditures to support long-term growth. Financially, ExxonMobil maintained a robust position, with cash provided by operating activities significantly increasing year-over-year. While investing activities saw higher spending on property, plant, and equipment, the company's overall liquidity remained strong. The balance sheet indicates a healthy financial structure with a low debt-to-total capital ratio. Despite some minor legal and environmental matters noted, management believes the ultimate outcomes will not materially affect the company's financial condition.

Financial Highlights

39 data points
Beta

Net Income

$6.30B

EPS (Diluted)

$1.33

Total Assets

$242.75B

Cash & Equivalents

$13.74B

Free Cash Flow

$7.29B

Financial Statements
Beta
SG&A Expenses$3.51B
Operating Expenses$78.18B
Interest Expense$55.00M
Net Income$6.30B
EPS (Basic)$1.33
EPS (Diluted)$1.33

Key Highlights

  • 1Net income attributable to ExxonMobil rose 38% to $6.3 billion in Q1 2010 compared to Q1 2009, driven by higher crude oil realizations and chemical margins.
  • 2Earnings per share increased by 45% to $1.33, reflecting the improved profitability.
  • 3Upstream earnings saw a substantial increase of $2.3 billion, primarily due to higher crude oil prices and increased production volumes.
  • 4Chemical segment earnings more than tripled, benefiting from stronger margins and higher sales volumes.
  • 5The company returned nearly $4 billion to shareholders in Q1 2010 through dividends and share repurchases.
  • 6Capital and exploration expenditures increased by 19% to $6.9 billion, with a focus on the Upstream segment, indicating continued investment in future growth.
  • 7Cash provided by operating activities significantly increased to $13.0 billion, demonstrating strong operational cash generation.

Frequently Asked Questions

ExxonMobil's earnings significantly increased in the first quarter of 2010 primarily due to higher crude oil realizations and stronger chemical margins. The Upstream segment benefited from favorable commodity prices and increased production, while the Chemical segment saw improved margins and volumes. These positive factors more than offset weaker downstream industry margins.

ExxonMobil returned nearly $4 billion to shareholders in the first quarter of 2010. This was achieved through the payment of dividends and the repurchase of shares of its common stock, which also helped to reduce the number of shares outstanding.

ExxonMobil maintained a strong investment strategy, increasing capital and exploration expenditures by 19% to $6.9 billion in the first quarter of 2010, with a notable increase in spending in the Upstream segment. This reflects the company's ongoing commitment to invest at record levels through the business cycle to support long-term growth.

The company disclosed a few minor legal and environmental matters, including penalty assessments for alleged emissions violations at its Torrance refinery and Baton Rouge chemical plant. There is also an ongoing arbitration related to the expropriation of its interest in the Cerro Negro Heavy Oil Project in Venezuela. However, management has stated that based on current information, they do not expect the ultimate outcome of these matters to have a material adverse effect on the Corporation's operations or financial condition.