10-QPeriod: Q3 FY2018

EXXON MOBIL CORP Quarterly Report for Q3 Ended Sep 30, 2018

Filed November 7, 2018For Securities:XOM

Summary

ExxonMobil Corporation (XOM) reported strong financial performance for the nine months ending September 30, 2018, with net income attributable to ExxonMobil reaching $14.84 billion, a significant increase from $11.33 billion in the same period of 2017. This growth was primarily driven by higher energy prices and improved operational performance across its Upstream, Downstream, and Chemical segments. The company's revenue also saw a substantial rise, indicating a robust market for its products and services. Cash flow from operating activities was strong, demonstrating the company's ability to generate substantial cash from its core operations, which supported significant investments in capital and exploration expenditures totaling $18.1 billion. These investments are geared towards future growth and maintaining its asset base. The company also returned substantial value to shareholders through dividends, underscoring its commitment to shareholder returns while continuing to invest in its long-term strategic objectives. Overall, the results indicate a healthy and financially sound company navigating a dynamic energy market.

Financial Highlights

41 data points
Beta

Revenue

$74.19B

Net Income

$6.24B

8.4% Net Margin

EPS (Diluted)

$1.46

Total Assets

$354.63B

Cash & Equivalents

$5.67B

Free Cash Flow

$5.90B

Financial Statements
Beta
Revenue$74.19B
SG&A Expenses$2.89B
Operating Expenses$67.53B
Interest Expense$200.00M
Net Income$6.24B
EPS (Basic)$1.46
EPS (Diluted)$1.46
Shares Outstanding (Basic)4.27B

Key Highlights

  • 1Net income attributable to ExxonMobil increased by 31% to $14.84 billion for the first nine months of 2018 compared to $11.33 billion in the prior year period.
  • 2Total revenues and other income grew significantly to $218.3 billion for the nine months ended September 30, 2018, up from $177.8 billion in the same period of 2017.
  • 3Upstream segment earnings showed a substantial increase, driven by higher liquids and gas realizations.
  • 4Downstream segment earnings saw a decrease for the nine months due to lower margins and unfavorable foreign exchange impacts, though U.S. Downstream earnings improved.
  • 5Chemical segment earnings decreased primarily due to weaker margins, particularly in Non-U.S. operations.
  • 6Cash flow from operating activities increased to $27.4 billion for the first nine months of 2018, up from $22.7 billion in the prior year.
  • 7Capital and exploration expenditures increased by 28% to $18.1 billion for the first nine months of 2018, reflecting investments in future growth, notably increased U.S. drilling and Brazilian acreage acquisitions.

Frequently Asked Questions

For the first nine months of 2018, ExxonMobil's net income attributable to ExxonMobil was $14.84 billion, a significant increase of 31% compared to $11.33 billion for the same period in 2017. This improvement was largely driven by higher energy prices and enhanced operational performance.

The Upstream segment performed strongly, with earnings increasing significantly due to higher realizations. The Downstream segment saw a decrease in earnings for the nine-month period, impacted by lower margins and unfavorable foreign exchange, although U.S. Downstream operations improved. The Chemical segment also experienced a decline in earnings, primarily due to weaker margins, especially in its non-U.S. operations.

ExxonMobil distributed $10.3 billion in dividends to shareholders during the first nine months of 2018, demonstrating a commitment to shareholder returns. Concurrently, the company significantly increased its capital and exploration expenditures by 28% to $18.1 billion in the same period, focusing on investments in future growth, such as increased drilling activity and acreage acquisitions.

Cash flow from operating activities was robust, reaching $27.4 billion for the first nine months of 2018, an increase from the prior year. The company's liquidity position was healthy, with cash and cash equivalents totaling $5.67 billion at September 30, 2018, and total debt decreasing to $40 billion. The debt-to-total capital ratio stood at 16.9%.