Exxon Mobil (XOM) Q3 2012 earnings summary

Executive summary

• Q3 earnings were $9.57B, down $760M, or 7%, YoY; lower Upstream results and asset-sale gains were partly offset by stronger Downstream performance.

• Q3 diluted EPS was $2.09; 9M earnings rose 10% to $34.93B, including a $6.5B Japan restructuring gain.

• Q3 cash flow from operations and asset sales was $14.0B; $9.18B was invested and $7.6B distributed to shareholders.

Financial highlights

• Q3 revenue and other income was $115.7B versus $125.3B YoY; net income was $9.57B versus $10.33B.

• Cash flow from operations and asset sales was $14.0B, including $0.6B in asset-sale proceeds; 9M cash flow was $49.8B.

• Q3 capital and exploration expenditures were $9.18B, up 7% YoY; 9M spending reached a record $27.36B, up 2%.

• Quarter-end cash was $13.3B and total debt was $12.4B.

• Q3 income before tax was $17.32B and income taxes were $7.39B; the effective tax rate was 47%.

Outlook and guidance

• Q4 share purchases to reduce shares outstanding were anticipated at $5B; purchases could vary or stop at any time.

• Year-to-date volumes were below outlook; operational performance was ~1% below outlook, with higher prices and divestments affecting volumes.

• Q4 volumes were expected to benefit from seasonal demand, project start-ups and completion of scheduled downtime.

• Planned capital and exploration investment was ~$37B annually over the next five years; actual spending could vary with project progress and acquisitions.

• Nigeria Satellites Phase 1 remained on track for first oil in 4Q12; Kearl start-up activities were underway.