10-QPeriod: Q2 FY2013

EXXON MOBIL CORP Quarterly Report for Q2 Ended Jun 30, 2013

Filed August 6, 2013For Securities:XOM

Summary

ExxonMobil Corporation's second-quarter 2013 results show a significant year-over-year decrease in net income, primarily driven by the absence of a substantial gain from a Japan restructuring in the prior year and weaker refining margins. Net income attributable to ExxonMobil was $6.9 billion, down from $15.9 billion in the second quarter of 2012. For the first six months of 2013, net income was $16.4 billion, a considerable drop from $25.4 billion in the same period of 2012. Despite the decline in reported earnings, the company highlighted continued strong operational performance and strategic investments. Capital and exploration expenditures remained robust, totaling $10.2 billion for the quarter and $22 billion for the first six months, indicating a commitment to future growth, including the recent acquisition of Celtic Exploration Ltd. The company also returned significant capital to shareholders, distributing $6.8 billion in the second quarter through dividends and share repurchases.

Financial Highlights

40 data points
Beta

Net Income

$6.86B

EPS (Diluted)

$1.55

Total Assets

$341.62B

Cash & Equivalents

$4.61B

Free Cash Flow

-$968.00M

Financial Statements
Beta
SG&A Expenses$3.27B
Operating Expenses$93.90B
Interest Expense$85.00M
Net Income$6.86B
EPS (Basic)$1.55
EPS (Diluted)$1.55
Shares Outstanding (Basic)4.43B
Shares Outstanding (Diluted)4.43B

Key Highlights

  • 1Net income for the second quarter of 2013 was $6.9 billion, a 57% decrease compared to $15.9 billion in the second quarter of 2012, largely due to the absence of a prior year gain from a Japan restructuring.
  • 2For the first six months of 2013, net income was $16.4 billion, down from $25.4 billion in the same period of 2012.
  • 3Earnings per diluted share for the second quarter of 2013 were $1.55, down from $3.41 in the prior year quarter.
  • 4Capital and exploration expenditures for the quarter were $10.2 billion, and $22 billion for the first six months of 2013, reflecting ongoing investments.
  • 5The company distributed $6.8 billion to shareholders in the second quarter of 2013 through dividends and share purchases.
  • 6Upstream earnings saw a decline due to lower liquids realizations and the absence of a prior year gain in Angola, despite higher natural gas realizations.
  • 7Downstream earnings were significantly impacted by weaker refining margins and planned maintenance activities, in addition to the absence of the Japan restructuring gain.

Frequently Asked Questions

The substantial decrease in net income for the second quarter of 2013, compared to the second quarter of 2012, is primarily attributed to the absence of a significant net gain of $7.5 billion from divestments and tax-related items in the prior year, particularly related to a Japan restructuring. Excluding this, the decline was 19%.

ExxonMobil continued to invest heavily, with capital and exploration expenditures totaling $10.2 billion for the quarter, in line with plans. The company also returned $6.8 billion to shareholders in the second quarter through a combination of dividends and share repurchases.

Upstream earnings decreased due to lower liquids realizations and the absence of prior-year gains, although higher natural gas realizations provided some offset. Downstream earnings were negatively impacted by weaker refining margins, planned refinery maintenance activities, and importantly, the absence of the significant gain from the Japan restructuring recorded in the prior year.

ExxonMobil anticipates an investment profile of approximately $38 billion per year for the next several years, though actual spending may vary based on project progress and acquisition opportunities. This includes recent investments like the acquisition of Celtic Exploration Ltd.