10-QPeriod: Q3 FY2017

EXXON MOBIL CORP Quarterly Report for Q3 Ended Sep 30, 2017

Filed November 1, 2017For Securities:XOM

Summary

Exxon Mobil Corporation (XOM) reported its third-quarter and nine-month results for the period ending September 30, 2017. The company demonstrated a significant increase in profitability, with net income attributable to ExxonMobil rising to $3.97 billion for the quarter and $11.33 billion for the nine-month period, up from $2.65 billion and $6.16 billion in the prior year, respectively. This substantial improvement was driven by higher commodity prices, particularly in the Upstream segment, and stronger performance in the Downstream business. Operational highlights include a 2% increase in Upstream oil-equivalent production during the third quarter, with notable growth in Non-U.S. Upstream earnings. The Downstream segment also saw improved earnings, largely due to higher refining margins. Despite these positive trends, the Chemical segment experienced a slight decline in earnings driven by weaker margins. The company maintained a strong focus on capital discipline, with capital and exploration expenditures decreasing by 3% for the nine-month period. ExxonMobil continued to return value to shareholders through dividends, distributing $9.7 billion for the first nine months of the year.

Financial Highlights

41 data points
Beta

Revenue

$59.35B

Net Income

$3.97B

6.7% Net Margin

EPS (Diluted)

$0.93

Total Assets

$349.43B

Cash & Equivalents

$4.27B

Free Cash Flow

$2.62B

Financial Statements
Beta
Revenue$59.35B
SG&A Expenses$2.63B
Operating Expenses$55.52B
Interest Expense$111.00M
Net Income$3.97B
EPS (Basic)$0.93
EPS (Diluted)$0.93
Shares Outstanding (Basic)4.27B

Key Highlights

  • 1Net income attributable to ExxonMobil surged to $3.97 billion in Q3 2017 and $11.33 billion in the first nine months, a significant increase from $2.65 billion and $6.16 billion in the prior year periods.
  • 2Upstream segment earnings improved substantially, driven by higher liquids and gas realizations, with Non-U.S. Upstream earnings showing a strong increase.
  • 3Downstream segment earnings also rose, primarily due to stronger refining margins, although volume and mix effects slightly decreased earnings.
  • 4Chemical segment earnings declined year-over-year due to weaker margins, despite an increase in prime product sales.
  • 5Capital and exploration expenditures for the first nine months of 2017 were $14.1 billion, a decrease of 3% compared to the same period in 2016, indicating disciplined capital allocation.
  • 6Total dividends distributed to shareholders reached $9.7 billion for the first nine months of 2017.
  • 7The company's debt-to-total capital ratio improved to 17.7% as of September 30, 2017, down from 19.7% at year-end 2016.

Frequently Asked Questions

The primary driver for the substantial increase in net income was the improvement in commodity prices, which positively impacted earnings in the Upstream segment. Additionally, stronger performance in the Downstream segment, particularly higher refining margins, contributed significantly to the profit growth.

ExxonMobil's oil-equivalent production increased by 2% in the third quarter of 2017 compared to the prior year's third quarter. For the first nine months, production was down 1% year-over-year. The company also noted an increase in Non-U.S. Upstream earnings and higher liquids production.

For the first nine months of 2017, capital and exploration expenditures were $14.1 billion, a 3% decrease from the prior year, indicating a focus on capital discipline. The company distributed $9.7 billion in dividends to shareholders during the same period, demonstrating a commitment to returning value to investors.

ExxonMobil is involved in various legal proceedings and contingencies, including matters related to environmental regulations, pipeline safety, and international arbitrations. While the company does not believe the ultimate outcome of any single pending lawsuit will have a material adverse effect on its financial condition, these matters are complex and constantly being evaluated. Specific details are discussed in Note 3 of the filing, and ongoing legal disputes are highlighted in Part II, Item 1.