10-QPeriod: Q1 FY2021

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 5, 2021For Securities:XOM

Summary

ExxonMobil Corporation (XOM) reported a significant turnaround in its first quarter of 2021, posting a net income of $2.73 billion, a substantial improvement from a net loss of $0.61 billion in the same period of 2020. This rebound was driven by a strong recovery in the Upstream and Chemical segments, benefiting from higher commodity prices and improved chemical margins. The company also saw a notable increase in revenues, reaching $59.15 billion compared to $56.16 billion a year ago. Despite the positive net income, operational challenges such as the winter storm in Texas and lower Downstream margins presented headwinds. However, the company's strategic focus on cost management and operational efficiency, including ongoing workforce reductions, contributed to expense reductions. ExxonMobil also continued its commitment to shareholder returns, distributing $3.7 billion in dividends. The company's financial position remains solid, with a reduced debt-to-total capital ratio and ample liquidity, positioning it to navigate the evolving energy landscape.

Financial Highlights

43 data points
Beta

Revenue

$57.55B

Net Income

$2.73B

4.7% Net Margin

EPS (Diluted)

$0.64

Total Assets

$333.77B

Cash & Equivalents

$3.52B

Free Cash Flow

$6.86B

Financial Statements
Beta
Revenue$57.55B
SG&A Expenses$2.43B
Operating Expenses$55.55B
Interest Expense$258.00M
Net Income$2.73B
EPS (Basic)$0.64
EPS (Diluted)$0.64
Shares Outstanding (Basic)4.27B

Key Highlights

  • 1ExxonMobil reported a net income of $2.73 billion for Q1 2021, a significant turnaround from a net loss of $0.61 billion in Q1 2020, driven by improved Upstream and Chemical segment performance.
  • 2Total revenues and other income increased to $59.15 billion in Q1 2021 from $56.16 billion in Q1 2020, reflecting higher commodity prices and sales volumes.
  • 3The Upstream segment was the primary earnings driver, with earnings of $2.55 billion, up substantially from $0.54 billion in the prior year, due to higher crude oil and natural gas realizations.
  • 4The Chemical segment also showed strong performance, with earnings of $1.42 billion, a significant increase from $0.14 billion in Q1 2020, driven by higher margins and favorable volume/mix effects.
  • 5The Downstream segment reported a loss of $0.39 billion, an improvement from a loss of $0.61 billion in Q1 2020, but continued to be impacted by lower margins and the effects of the winter storm.
  • 6Capital expenditures for Q1 2021 were $3.1 billion, a decrease of 56% from the prior year, indicating a focus on cost discipline and efficient capital allocation. The company expects full-year 2021 capital spending to be between $16 billion and $19 billion.
  • 7Shareholder distributions remained strong, with $3.7 billion in dividends paid to shareholders in Q1 2021, consistent with the prior year.

Frequently Asked Questions

The primary driver for the improved profitability was the strong performance of the Upstream segment, which benefited significantly from higher crude oil and natural gas realizations. Additionally, the Chemical segment also contributed positively with increased margins and favorable volume/mix effects, overcoming the losses experienced in the prior year.

ExxonMobil faced several challenges, including lower Downstream margins, which continued to pressure profitability in that segment. The company also experienced unfavorable impacts from the winter storm in Texas, which affected both Upstream and Chemical operations. Additionally, unfavorable foreign exchange impacts and lower Upstream volumes presented some headwinds.

ExxonMobil significantly reduced its capital expenditures in Q1 2021 to $3.1 billion, a 56% decrease from the prior year, signaling a focus on cost discipline. The company expects full-year capital spending to range between $16 billion and $19 billion. Despite capital investment moderation, the company maintained its commitment to shareholder returns, distributing $3.7 billion in dividends during the quarter.

The Upstream segment showed a robust recovery, driven by commodity prices, indicating a positive outlook if prices remain strong. The Chemical segment also performed very well, suggesting continued demand and favorable market conditions. The Downstream segment, however, remains challenged by lower margins and operational impacts, suggesting a more cautious outlook for this segment in the near term.