10-QPeriod: Q1 FY2019

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 2, 2019For Securities:XOM

Summary

ExxonMobil Corporation's first quarter 2019 results, filed on May 2, 2019, show a notable decrease in net income attributable to ExxonMobil to $2.35 billion, down from $4.65 billion in the first quarter of 2018. This decline is primarily attributed to lower margins in the Downstream and Chemical segments, coupled with increased scheduled maintenance activities impacting profitability. While Upstream earnings saw a decrease, largely due to the absence of a prior year gain on asset sales and higher expenses, the total oil-equivalent production increased slightly by 2% year-over-year. The company's financial position remains solid, with cash and cash equivalents increasing to $4.59 billion at the end of the quarter. Total debt stood at $40.8 billion, resulting in a debt-to-capital ratio of 17.1%. Capital expenditures increased significantly, reflecting ongoing investments in growth projects across its segments. Despite the quarterly earnings dip, ExxonMobil continued to return capital to shareholders through $3.5 billion in dividends.

Financial Highlights

41 data points
Beta

Revenue

$61.65B

Net Income

$2.35B

3.8% Net Margin

EPS (Diluted)

$0.55

Total Assets

$356.19B

Cash & Equivalents

$4.59B

Free Cash Flow

$3.14B

Financial Statements
Beta
Revenue$61.65B
SG&A Expenses$2.77B
Operating Expenses$59.34B
Interest Expense$181.00M
Net Income$2.35B
EPS (Basic)$0.55
EPS (Diluted)$0.55
Shares Outstanding (Basic)4.27B

Key Highlights

  • 1Net income attributable to ExxonMobil decreased to $2.35 billion in Q1 2019 from $4.65 billion in Q1 2018.
  • 2Earnings per diluted share declined to $0.55 in Q1 2019 from $1.09 in Q1 2018.
  • 3Upstream earnings were $2.88 billion, down from $3.50 billion in the prior year, impacted by lower realizations and the absence of an asset sale gain.
  • 4Downstream earnings were negative at $(0.26) billion, a significant decrease from $0.94 billion in the prior year, primarily due to lower margins and higher maintenance.
  • 5Chemical earnings were $0.52 billion, down from $1.01 billion in the prior year, also affected by lower margins.
  • 6Total capital and exploration expenditures increased by 42% to $6.9 billion in Q1 2019 compared to Q1 2018, with approximately $30 billion anticipated for the full year 2019.
  • 7Cash dividends to shareholders totaled $3.5 billion in Q1 2019.

Frequently Asked Questions

The primary drivers for the decrease in net income were lower margins in the Downstream and Chemical segments, as well as increased scheduled maintenance activity. Additionally, Upstream earnings were negatively impacted by lower commodity price realizations and the absence of a significant asset sale gain recorded in the prior year.

ExxonMobil's oil-equivalent production increased by 2% compared to the first quarter of 2018, reaching 4.0 million barrels per day. Liquids production saw an increase, while natural gas production experienced a slight decrease. The company highlighted growth in the U.S. Upstream segment.

ExxonMobil significantly increased its capital and exploration expenditures in Q1 2019, with a full-year 2019 investment anticipated around $30 billion, indicating a focus on growth projects. The company also continued its commitment to shareholder returns by distributing $3.5 billion in dividends during the first quarter.

The company's total debt was $40.8 billion at the end of Q1 2019, with a debt-to-capital ratio of 17.1%. Cash and cash equivalents increased to $4.59 billion. ExxonMobil generally expects internally generated funds to cover financial requirements, supplemented by debt as needed, and stated it has access to significant liquidity capacity.