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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 30, 2003
EXXON MOBIL CORPORATION
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(Exact name of registrant as specified in its charter)
New Jersey 1-2256 13-5409005
- ---------------------------- ---------------------- ------------------
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
5959 Las Colinas Boulevard
Irving, Texas 75039-2298
- --------------------------------------- ------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 444-1000
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(Former name or former address, if changed since last report)
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ITEM 9. Regulation FD Disclosure
The Registrant hereby furnishes the information set forth in its
News Release, dated January 30, 2003, announcing fourth quarter
results, a copy of which is included as Exhibit 99.
-2-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EXXON MOBIL CORPORATION
Date: January 30, 2003 By: /s/ Donald D. Humphreys
--------------------------------------
Name: Donald D. Humphreys
Title: Vice President, Controller and
Principal Accounting Officer
-3-
INDEX TO EXHIBITS
Exhibit No. Description
___________ ___________
99 Exxon Mobil Corporation News Release, dated January 30,
2003, announcing fourth quarter results.
-4-
Exhibit 99
News Release
ExxonMobil
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, TX 75039-2298
972 444 1107 Telephone
972 444 1138 Facsimile
FOR IMMEDIATE RELEASE
THURSDAY, JANUARY 30, 2003
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
___________________________________________
FOURTH QUARTER AND 2002 RESULTS
_______________________________
Fourth Quarter Twelve Months
______________ ______________
2002 2001 2002 2001
____ ____ ____ ____
Net Income
__________
$ Millions 4,090 2,680 11,460 15,320
$ Per Common Share
Assuming Dilution 0.60 0.39 1.68 2.21
Earnings Excluding Merger Effects,
__________________________________
Discontinued Operations and Other
_________________________________
Special Items
_____________
$ Millions 3,790 2,869 11,501 15,528
$ Per Common Share
Assuming Dilution 0.56 0.42 1.69 2.25
Revenue - $ Millions 56,211 47,744 204,506 212,785
Capital & Exploration
Expenditures - $ Millions 4,025 3,863 13,955 12,311
IRVING, TX, January 30 -- Exxon Mobil Corporation today reported fourth
quarter results. Net income was $4,090 million ($0.60 per share), an increase
of $1,410 million (53%) from the fourth quarter of 2001 and an increase of
$1,450 million (55%) from the third quarter of 2002. Excluding merger effects,
discontinued operations and other special items, fourth quarter 2002 earnings
were $3,790 million ($0.56 per share), an increase of $921 million from the
fourth quarter of 2001, and an increase of $861 million from the third quarter
of 2002.
2
Revenue for the fourth quarter of 2002 totaled $56,211 million compared
with $47,744 million in 2001. Capital and exploration expenditures of
$4,025 million in the fourth quarter of 2002 were up $162 million compared with
last year and were 13% higher than in this year's third quarter.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"ExxonMobil's fourth quarter 2002 net income of $4,090 million was up
$1,450 million or 55% from third quarter 2002 and represents the corporation's
highest net income since the second quarter of 2001. Earnings excluding merger
effects, discontinued operations and other special items were up $861 million
at $3,790 million and continued the upward trend in results for each quarter in
2002.
"Upstream earnings improved $510 million from the third quarter,
reflecting higher natural gas prices and seasonally higher volumes.
"Downstream earnings increased $696 million primarily due to improvements
in worldwide refining and marketing margins from a weak third quarter. Earnings
also benefited from a reduction in inventories.
"Chemicals earnings fell by $277 million compared with the third quarter
due to weaker worldwide margins.
"Corporate and financing expenses of $109 million increased $68 million
mainly due to the absence of favorable foreign exchange impacts.
"Fourth quarter net income included after-tax merger expenses of
$100 million and discontinued operations earnings of $400 million reflecting
the gain on the sale of
3
Chilean copper operations. Net income in the fourth quarter 2001 included
after-tax merger expenses of $200 million and discontinued operations earnings
of $11 million.
"Compared with last year's fourth quarter, ExxonMobil's fourth quarter
2002 net income of $4,090 million was up $1,410 million. Earnings excluding
merger effects, discontinued operations and other special items were
$3,790 million, up $921 million.
"Upstream earnings were $3,002 million, an increase of $1,267 million from
fourth quarter 2001 results. These upstream results reflect higher realizations
on sales of crude oil and natural gas. On an oil-equivalent basis, production
increased 1% excluding the effect of OPEC quota restrictions. Liquids
production, excluding the impact of OPEC quota restrictions, was flat as new
production in Canada, Angola and Equatorial Guinea was offset by natural field
decline. Natural gas volumes were up 3%, reflecting higher European demand and
the return to full production levels at Arun in Indonesia. Plans for long-term
capacity increases remain on track as reflected by higher capital spending.
"Downstream earnings were $821 million, down $198 million from last year's
fourth quarter, reflecting weaker industry-wide conditions. Marketing margins
were weaker, with improvements in the U.S. more than offset by declines
elsewhere. Refining margins were also lower in most areas worldwide.
"Chemicals earnings of $76 million were down $133 million from last year's
fourth quarter. Worldwide margins were lower as a result of higher feedstock
costs in the fourth quarter of 2002.
4
"In the fourth quarter, ExxonMobil continued its active investment
program, spending $4,025 million on capital and exploration projects, compared
with $3,863 million last year, reflecting continued growth in upstream
spending.
"During the quarter, the corporation acquired 34 million shares at a gross
cost of $1,181 million to offset the dilution associated with benefit plans and
to reduce common stock outstanding.
"ExxonMobil's full year 2002 net income of $11,460 million decreased
$3,860 million from 2001 reflecting lower natural gas realizations and the poor
market conditions in the downstream.
"Capital and exploration expenditures of $13,955 million in 2002 were up
$1,644 million, or 13%, compared with $12,311 million last year. Upstream
capital spending was 18% higher, consistent with long term investment plans to
sustain base capacity and expand profitable production.
"Operating expenses for 2002 declined $300 million versus 2001. The
decline was related to lower energy prices and additional efficiencies captured
in all business lines. In 2002, these cost efficiencies exceeded one billion
dollars and have cumulatively reached five billion dollars compared with
pre-merger operations.
"Cash flow from operations and asset sales for 2002 was $24 billion, equal
to last year's level mainly due to increased asset sales. Cash flows were large
enough to exceed requirements to fund the corporation's growing capital
expenditure program, shareholder dividends and continuing share purchases."
5
Additional comments on earnings for the major operating segments follow:
Fourth Quarter 2002 vs. Fourth Quarter 2001
___________________________________________
Upstream earnings were $3,002 million, up $1,267 million from the fourth
quarter 2001 reflecting higher crude oil and natural gas realizations.
Oil-equivalent production was up 1% versus the fourth quarter of last
year, excluding the impact of OPEC quota restrictions. Total actual
oil-equivalent production was flat as contributions from new projects and work
programs were offset by natural field declines and OPEC quota restrictions.
Liquids production of 2,497 kbd (thousands of barrels per day) decreased from
2,527 kbd in the fourth quarter of 2001. Higher production in Canada, Angola,
and Equatorial Guinea was more than offset by OPEC quota restrictions and
natural field declines in mature areas. Liquids production was flat in the
fourth quarter versus last year, excluding OPEC quota restrictions. Fourth
quarter natural gas production increased to 11,667 mcfd (millions of cubic feet
per day), compared with 11,373 mcfd last year. Higher European demand and the
return to full production levels at Arun more than offset natural field decline
in mature areas.
Earnings from U.S. upstream operations were $757 million, up $339 million.
Non-U.S. upstream earnings of $2,245 million were $928 million higher than last
year's fourth quarter.
Downstream earnings of $821 million decreased $198 million from the fourth
quarter of last year. Marketing margins were weaker with improvements in the
U.S. more than offset by declines elsewhere. Worldwide refining margins,
although improved against prior quarters in 2002, were on average weaker than
the fourth quarter of 2001. Earnings in both quarters benefited from planned
reductions in
6
inventory levels. Petroleum product sales were 8,017 kbd, flat with last year's
fourth quarter.
U.S. downstream earnings were $403 million, up $122 million. Non-U.S.
downstream earnings of $418 million were $320 million lower than last year's
fourth quarter.
Chemicals earnings of $76 million were down $133 million from the same
quarter a year ago as weaker margins, and adverse tax impacts in Singapore,
were partially offset by higher volumes. Prime product sales of 6,709 kt
(thousands of metric tons) were up 337 kt, reflecting higher demand in key
commodity businesses across most regions and supported by capacity additions in
Singapore.
During the period, the company continued to benefit from the favorable
resolution of tax related issues.
Fourth quarter net income also included $100 million of after-tax merger
expenses, including costs for rationalization of facilities and systems.
Reflecting the completion of merger-related activities, the segment for
reporting merger expenses will not be used in 2003.
During the fourth quarter of 2002, Exxon Mobil Corporation purchased
34 million shares of its common stock for the treasury at a gross cost of
$1,181 million. These purchases were to offset shares issued in conjunction
with company benefit plans and programs and to reduce the number of shares
outstanding. Shares outstanding were reduced from 6,729 million at the end of
the third quarter of 2002 to 6,700 million at the end of the fourth quarter.
Purchases may be made in both the open market and through negotiated
transactions, and may be discontinued at any time.
7
Full Year 2002 vs. Full Year 2001
_________________________________
Net income of $11,460 million ($1.68 per share) decreased $3,860 million
from 2001. Excluding merger effects, discontinued operations and other special
items, earnings of $11,501 million decreased $4,027 million from 2001.
Upstream earnings decreased primarily due to lower natural gas
realizations, particularly in North America, where prices reached historical
highs at the beginning of 2001. Higher crude oil realizations partly offset
declines in natural gas prices.
Oil-equivalent production was up 1% versus 2001 excluding the impact of
OPEC quota restrictions. Total actual oil-equivalent production was flat as the
resumption of full production at Arun and contributions from new projects and
work programs offset natural field declines and OPEC quota restrictions.
Liquids production of 2,496 kbd decreased 46 kbd from 2001. Production
increases from new projects in Angola, Canada, Malaysia and Venezuela offset
natural field declines in mature areas. OPEC quota restrictions increased in
2002. Excluding the effect of these restrictions, liquids production was flat
with 2001. Worldwide natural gas production of 10,452 mcfd in 2002 compared
with 10,279 mcfd in 2001. Improvements in Asia-Pacific volumes, mainly from the
return to full production levels at the Arun field in Indonesia following last
year's curtailments due to security concerns, more than offset lower weather-
related demand in Europe and natural field decline in the U.S. Weather-related
demand in Europe reduced total gas volumes by about 1%.
Earnings from U.S. upstream operations for 2002 were $2,524 million, a
decrease of $1,409 million. Excluding the $215 million special charge relating
to the
8
U.K. tax rate change reported in 2002, earnings outside the U.S. were
$7,289 million, $486 million higher than last year.
Downstream earnings decreased substantially from 2001, reflecting
significantly lower refining margins in most geographical areas, and further
weakness in marketing margins. Improved refining operations and lower operating
expenses provided a partial offset to the margin decline. Petroleum product
sales of 7,757 kbd decreased 214 kbd from 2001, largely related to reduced
refinery runs due to weak margins and lower demand for distillates and aviation
fuels.
U.S. downstream earnings were $693 million, down $1,231 million. Earnings
outside the U.S. of $607 million were $1,696 million lower than last year.
Excluding special items of $175 million recorded in 2001, chemicals
earnings of $830 million for 2002 were $123 million higher than last year
reflecting increased prime product sales across all regions. Record sales
volumes of 26,925 kt were 4% above last year's level.
Corporate and financing expenses increased $300 million to $442 million,
mainly reflecting higher pension expense and lower interest income. The
effective tax rate in 2002 was 40%, up 1% from 2001. During 2002, the company
continued to benefit from the favorable resolution of tax related issues.
During 2002, Exxon Mobil Corporation purchased 127 million shares of its
common stock for the treasury at a gross cost of $4,798 million. These
purchases were to offset shares issued in conjunction with the company's
benefit plans and programs and to reduce the number of shares outstanding.
9
Estimates of key financial and operating data follow. Financial data,
except per share amounts, are expressed in millions of dollars.
Consistent with previous practice, the fourth quarter press release
includes both net income and earnings excluding merger expenses, discontinued
operations and other special items. Earnings that exclude the aforementioned
segments are a non-GAAP financial measure and are included to help facilitate
comparisons of base business performance across periods.
In November 2002, ExxonMobil completed the successful divestment of its
copper business in Chile. Earnings associated with the copper business, and the
Colombian coal operations which were sold in the first quarter of 2002, are
reported as discontinued operations. Power generation activities, primarily in
Hong Kong, and remaining U.S. coal operations are now included in the upstream
segment. Further details on the reporting realignment are contained in the
Form 8-K filed on December 20, 2002 which can be accessed on the ExxonMobil
website.
ExxonMobil will discuss financial and operating results and other matters
on a webcast at 10 a.m. central time on January 30, 2002. To listen to the
event live or in archive, go to our website at www.exxonmobil.com.
____________________________________________________________
Statements in this release relating to future plans, projections, events, or
conditions are forward-looking statements. Actual results, including production
growth and capital spending, could differ materially due to changes in market
conditions affecting the oil and gas industry; political events or
disturbances; changes in OPEC quotas; changes in technical or operating
conditions; and other factors including those
10
discussed under the heading "Factors Affecting Future Results" on our website
and in Item 1 of ExxonMobil's 2001 Form 10-K. We assume no duty to update these
statements as of any future date.
ATTACHMENT I
EXXON MOBIL CORPORATION
FOURTH QUARTER 2002
___________________
(millions of dollars, except per share amounts)
Fourth Quarter Twelve Months
______________ _______________
2002 2001 2002 2001
____ ____ ____ ____
EARNINGS / EARNINGS PER SHARE
Total revenue 56,211 47,744 204,506 212,785
Total cost and other deductions 50,794 43,974 186,996 188,815
Income before income taxes $ 5,417 $ 3,770 $ 17,510 $ 23,970
Income taxes 1,727 1,101 6,499 8,967
Income from continuing operations $ 3,690 $ 2,669 $ 11,011 $ 15,003
Discontinued operations 400 11 449 102
Extraordinary gain 0 0 0 215
Net income (U.S. GAAP) $ 4,090 $ 2,680 $ 11,460 $ 15,320
Net income per common share (dollars)
Income from continuing operations 0.54 0.39 1.62 2.19
Discontinued operations 0.06 0.00 0.07 0.01
Extraordinary gain 0.00 0.00 0.00 0.03
Net income $ 0.60 $ 0.39 $ 1.69 $ 2.23
Net income per common share
- - assuming dilution (dollars)
Income from continuing operations 0.54 0.39 1.61 2.17
Discontinued operations 0.06 0.00 0.07 0.01
Extraordinary gain 0.00 0.00 0.00 0.03
Net income $ 0.60 $ 0.39 $ 1.68 $ 2.21
(continued)
Note - - Prior periods amounts include reclassifications to reflect previously
announced change in segment reporting. Earnings of divested coal and copper
mining businesses are reported as discontinued operations.
ATTACHMENT I (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2002
___________________
(millions of dollars, except per share amounts)
Fourth Quarter Twelve Months
______________ _______________
2002 2001 2002 2001
____ ____ ____ ____
OTHER FINANCIAL DATA
Dividends on common stock
Total $ 1,545 $ 1,571 $ 6,217 $ 6,254
Per common share $ 0.23 $ 0.23 $ 0.92 $ 0.91
Millions of common shares outstanding
At December 31 6,700 6,809
Average 6,712 6,823 6,753 6,868
Average - assuming dilution 6,755 6,889 6,803 6,941
Shareholders' equity at December 31 $ 74,597 $ 73,161
Capital employed at December 31 $ 89,088 $ 87,985
Income and other taxes
Income taxes 1,727 1,101 6,499 8,967
Excise taxes 5,816 6,071 22,040 21,907
All other taxes 9,380 9,281 35,746 35,653
Total taxes $ 16,923 $ 16,453 $ 64,285 $ 66,527
ExxonMobil's share of income taxes
of equity companies: $ 245 $ 222 $ 778 $ 748
Note - - Prior periods amounts include reclassifications to reflect previously
announced change in segment reporting. Earnings of divested coal and copper
mining businesses are reported as discontinued operations.
ATTACHMENT II
EXXON MOBIL CORPORATION
FOURTH QUARTER 2002
FUNCTIONAL EARNINGS
___________________
(millions of dollars)
Fourth Quarter Twelve Months
______________ _______________
2002 2001 2002 2001
____ ____ ____ ____
Net Income (U.S. GAAP)
Upstream
United States 757 418 2,524 3,933
Non-U.S. 2,245 1,317 7,074 6,803
Downstream
United States 403 281 693 1,924
Non-U.S. 418 738 607 2,303
Chemicals
United States 71 128 384 398
Non-U.S. 5 81 446 484
Corporate and financing (109) (94) (442) (142)
Merger expenses (100) (200) (275) (525)
Regulatory divestitures 0 0 0 40
Discontinued operations 400 11 449 102
Net income (U.S. GAAP) $ 4,090 $ 2,680 $ 11,460 $ 15,320
Merger Effects, Discontinued Operations and Other Special Items
Upstream
Non-U.S. 0 0 (215) 0
Chemicals
United States 0 0 0 100
Non-U.S. 0 0 0 75
Merger expenses (100) (200) (275) (525)
Regulatory divestitures 0 0 0 40
Discontinued operations 400 11 449 102
Corporate total $ 300 $ (189) $ (41) $ (208)
Earnings Excluding Merger Effects, Discontinued Operations
and Other Special Items
Upstream
United States 757 418 2,524 3,933
Non-U.S. 2,245 1,317 7,289 6,803
Downstream
United States 403 281 693 1,924
Non-U.S. 418 738 607 2,303
Chemicals
United States 71 128 384 298
Non-U.S. 5 81 446 409
Corporate and financing (109) (94) (442) (142)
Corporate total $ 3,790 $ 2,869 $ 11,501 $ 15,528
Note - - Prior periods amounts include reclassifications to reflect previously
announced change in segment reporting. Earnings of divested coal and copper
mining businesses are reported as discontinued operations.
ATTACHMENT III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2002
___________________
Fourth Quarter Twelve Months
______________ _______________
2002 2001 2002 2001
____ ____ ____ ____
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 650 714 681 712
Canada 375 338 349 331
Europe 603 630 592 653
Asia-Pacific 246 252 260 247
Africa 352 334 349 342
Other Non-U.S. 271 259 265 257
Worldwide 2,497 2,527 2,496 2,542
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 2,264 2,575 2,375 2,598
Canada 987 1,027 1,024 1,006
Europe 5,782 5,342 4,463 4,595
Asia-Pacific 2,015 1,899 2,019 1,547
Other Non-U.S. 619 530 571 533
Worldwide 11,667 11,373 10,452 10,279
Oil-equivalent production (koebd)* 4,442 4,423 4,238 4,255
(continued)
* Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2002
___________________
Fourth Quarter Twelve Months
______________ _______________
2002 2001 2002 2001
____ ____ ____ ____
Petroleum product sales (kbd)
United States 2,810 2,845 2,731 2,751
Canada 622 603 593 585
Europe 2,097 2,085 2,042 2,079
Asia-Pacific 1,581 1,553 1,503 1,609
Other Non-U.S. 907 930 888 947
Worldwide 8,017 8,016 7,757 7,971
Gasolines, naphthas 3,224 3,213 3,176 3,165
Heating oils, kerosene, diesel 2,406 2,472 2,292 2,389
Aviation fuels 698 665 691 721
Heavy fuels 680 626 604 668
Specialty products 1,009 1,040 994 1,028
Total 8,017 8,016 7,757 7,971
Refinery throughput (kbd)
United States 1,860 1,882 1,871 1,840
Canada 446 439 447 449
Europe 1,548 1,607 1,539 1,563
Asia-Pacific 1,449 1,375 1,379 1,436
Other Non-U.S. 282 284 245 283
Worldwide 5,585 5,587 5,481 5,571
Chemical product revenue
($ millions)
United States $ 2,247 $ 1,923 $ 8,713 $ 8,355
Non-U.S. $ 3,101 $ 2,537 $ 11,597 $ 10,957
Worldwide $ 5,348 $ 4,460 $ 20,310 $ 19,312
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,783 2,702 11,386 11,078
Non-U.S. 3,926 3,670 15,539 14,702
Worldwide 6,709 6,372 26,925 25,780
ATTACHMENT IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2002
___________________
(millions of dollars)
Fourth Quarter Twelve Months
______________ _______________
2002 2001 2002 2001
____ ____ ____ ____
Capital and Exploration Expenditures
Upstream
United States 584 667 2,357 2,423
Non-U.S. 2,297 1,988 8,037 6,393
Total 2,881 2,655 10,394 8,816
Downstream
United States 324 276 980 961
Non-U.S. 515 497 1,470 1,361
Total 839 773 2,450 2,322
Chemicals, administrative and
discontinued operations
United States 151 212 620 558
Non-U.S. 154 223 491 615
Total 305 435 1,111 1,173
Worldwide $ 4,025 $ 3,863 $ 13,955 $ 12,311
Exploration expenses charged to income
included above
Consolidated affiliates
United States 57 108 220 213
Non-U.S. 248 197 679 941
Equity companies - ExxonMobil share
Non-U.S. 34 3 39 11
Worldwide $ 339 $ 308 $ 938 $ 1,165
Note - - Prior periods amounts include reclassifications to reflect previously
announced change in segment reporting. Capital and exploration expenditures of
divested coal and copper mining businesses are reported as discontinued
operations.
ATTACHMENT V
EXXON MOBIL CORPORATION
NET INCOME
__________
$ Millions Per Common Share
__________ ________________
1998 - First Quarter 2,525 0.36
- Second Quarter 2,262 0.32
- Third Quarter 1,909 0.28
- Fourth Quarter 1,378 0.19
Year $ 8,074 $ 1.15
1999 - First Quarter 1,484 0.21
- Second Quarter 1,954 0.29
- Third Quarter 2,188 0.31
- Fourth Quarter 2,284 0.33
Year $ 7,910 $ 1.14
2000 - First Quarter 3,480 0.50
- Second Quarter 4,530 0.66
- Third Quarter 4,490 0.63
- Fourth Quarter 5,220 0.76
Year $17,720 $ 2.55
2001 - First Quarter 5,000 0.72
- Second Quarter 4,460 0.66
- Third Quarter 3,180 0.46
- Fourth Quarter 2,680 0.39
Year $15,320 $ 2.23
2002 - First Quarter 2,090 0.30
- Second Quarter 2,640 0.40
- Third Quarter 2,640 0.39
- Fourth Quarter 4,090 0.60
Year $11,460 $ 1.69