09 February 2016, Lagos – Exxon Mobil Corporation has announced estimated 2015 earnings of $16.2 billion, representing a decrease by over 50 per cent from the $32.5 billion earned by the company a year earlier.
Chairman and CC said the company’s financials were a reflection of the challenging environment.
“While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management,” Tillerson said.
“The scale and diversity of our cash flows, along with our financial strength, provide us with the confidence to invest through the cycle to create long-term shareholder value.”
ExxonMobil completed six major upstream projects during the year and achieved its full-year plan to produce 4.1 million oil-equivalent barrels per day, with the additional 300,000 oil-equivalent barrels per day of working interest production capacity from the six new projects.
But despite these milestones, the fourth quarter earnings were $2.8 billion, down from $6.6 billion in the fourth quarter of 2014.
During 2015, the corporation distributed $15.1 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding.
Major highlights in the fourth quarter include earnings of $2.8 billion decreasing from the $3.8 billion, or 58 percent, from the fourth quarter of 2014.
Capital and exploration expenditures were $7.4 billion, down 29 percent from the fourth quarter of 2014.
Cash flow from operations and asset sales was $5.1 billion, including proceeds associated with asset sales of $785 million.
The corporation distributed $3.6 billion to shareholders in the fourth quarter of 2015, including $500 million in share purchases to reduce shares outstanding.
Upstream earnings were $857 million in the fourth quarter of 2015, down $4.6 billion from the fourth quarter of 2014.
Lower liquids and gas realisations decreased earnings by $3.7 billion, while volume and mix effects increased earnings by $100 million, benefiting from new developments.
All other items, including the absence of both the prior year United States deferred income tax effects and recognition of a favorable arbitration ruling for expropriated Venezuela assets, decreased earnings by $960 million.
For the 2015 full year, earnings of $16.2 billion decreased 50 per cent from $32.5 billion in 2014.
Also earnings per share, assuming dilution, decreased 49 percent to $3.85.
Capital and exploration expenditures were $31.1 billion, down 19 percent from 2014.
The company anticipates further reductions in 2016, with capital and exploration expenditures of $23.2 billion, a decrease of 25 percent from 2015.