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Capital spending up, profits down in ExxonMobil’s third quarter Lower downstream earnings drop company’s overall third quarter profits; merger, special expenses total $300 million; gas volumes up, liquids in decline Allen Baker PNA Contributing Writer
Exxon Mobil Corp. followed the industry pattern in the third quarter, as sharply lower income from downstream operations hurt overall results.
The Irving, Texas, company had profits of $2.64 billion, down 17 percent from the figure in the third quarter of 2001. Earnings in this year’s third quarter did improve 10 percent from the second-quarter figure.
Merger expenses and special items cut $300 million from the result for the third quarter of this year, $140 million from last year’s third quarter. Upstream earnings rose 13 percent, or $286 million, to $2.42 billion, in the most recent quarter.
On an oil-equivalent basis, production was up 2 percent in the quarter, with major help coming from the Arun gas field in Indonesia, which was cut back at the same time last year because of security issues. Worldwide gas production rose 8 percent to 9,214 million cubic feet daily from 8,561 a year earlier.
Liquids production declines Liquids production was down 1 percent, however, to 2.45 million barrels daily from 2.48 million a year ago. ExxonMobil says production was higher in Angola, Malaysia, Canada and Venezuela, but that was offset by OPEC quota restrictions and declines in mature fields.
On the downstream side, profits slid $817 million to just $125 million for the third quarter of this year as margins thinned, especially in the United States, Europe and Japan. The third-quarter profit figure for refining and marketing was down $257 million from the second-quarter number. Overall refinery throughput was down 2 percent to 5.52 million barrels daily. The chemicals segment showed improvement, with earnings up 79 percent to $353 million. Higher volumes and better margins both contributed.
Capital spending rises The company continued to boost its investments, particularly in the upstream, with capital spending for the quarter up 15 percent, or nearly half a billion dollars, to $3.56 billion.
Revenue rose 4 percent to $54.2 billion for the third quarter from $52.1 billion in the corresponding quarter of 2001. This year’s second quarter revenue figure was $50.9 billion.
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