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Researched by Industrial Info Resources (Sugar Land, Texas)--Ongoing weakness in refining margins and commodity prices led Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) to its eighth consecutive quarter of profit declines and a seven-year low in production. As much as 19% of the company's oil and oil-equivalent reserves could be facing write-downs, which would be its largest de-booking in almost 20 years. Industrial Info is tracking $60.31 billion in active projects involving ExxonMobil, including a planned petrochemicals complex on the Gulf Coast.
Net income was reported to be $2.65 billion, a 37.5% decline from third-quarter 2015. Earnings fell across all divisions; not surprisingly, market conditions were the biggest headache: Brent crude averaged $46.99 a barrel during the third quarter, down 8.4% from the same period last year, while U.S. refining margins averaged less than $14 a barrel, a 35% decline. ExxonMobil's production fell 3% from third-quarter 2015 to 3.8 million barrels of oil equivalent per day, its lowest since 2009.
Executives warned that if energy prices continue on their present path, as many as 3.6 billion barrels of reserves in the Canadian oil sands and another 1 billion barrels of oil equivalent in other North American fields may be written down. This would be the biggest reserves revision in the company's history, which many think is long overdue; ExxonMobil is one of the few companies of its size and influence to have not yet recorded significant changes amid the downturn, and it is under state and federal investigation, including from the U.S. Securities and Exchange Commission, regarding how it evaluates its oil and gas wells.
In the company's Exploration & Production (or upstream) business, profits fell 16% from third-quarter 2015 to $620 million; in the U.S. alone, the upstream business widened its losses to $477 million, from $442 million in the same period last year. In the company's Refining & Marketing (or downstream) business, profits fell 40% from third-quarter 2015 to $1.2 billion, largely due to weaker refining margins.
Despite these setbacks, ExxonMobil is pushing forward with a major joint-venture project with Saudi Basic Industries Corporation (SABIC) (Riyadh, Saudi Arabia): an estimated $6 billion petrochemicals complex, set for Louisiana or Texas, likely in one of four potential locations. The complex would feature units that would produce an estimated 3.96 billion pounds per year of ethylene, as well as polyethylene. For more details, including contact information, necessary equipment and environmental requirements, see Industrial Info's project report.
Industrial Info also is tracking a major addition to an ExxonMobil facility in Texas: the 3 billion-pound-per-year ethylene unit at the olefins complex in Baytown, which also will add outside battery limits (OSBL) features. Both projects are set to be completed in the coming months. The unit will use ethane to produce ethylene as the primary feedstock to support proposed downstream polyethylene units; OSBL will feature aboveground and underground piping, electric, water, civil and steam utilities services. For more information, see Industrial Info's project reports on the ethylene unit and the OSBL additions.
ExxonMobil also is having some luck finding assets overseas. Last week, it announced a billion-barrel discovery off the coast of Nigeria; in the spring of last year, it announced a major discovery in Guyanese waters that it said could eventually produce 1.4 billion barrels. Industrial Info is tracking $1.15 billion in active, Nigeria-based ExxonMobil projects, including the $540 million addition of a captive power unit at the Qua Iboe Crude Oil Storage Terminal, near Uyo. The company plans to construct and install a 540-megawatt (MW), combined-cycle power block, consisting of three 140-MW combustion turbine generator sets and a 120-MW steam turbine generator, at the 4.5 million-barrel-per-day terminal. For more information, see Industrial Info's project report.
ExxonMobil is pushing forward with its proposed acquisition of InterOil Corporation (NYSE:IOC) (Whitehorse, Yukon), whose work is based in Southeast Asia and Oceania, a transaction that is valued at more than $2.5 billion. For more information, see October 11, 2016, article - ExxonMobil Closer to $2.5 Billion-Plus Acquisition of InterOil.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Net income was reported to be $2.65 billion, a 37.5% decline from third-quarter 2015. Earnings fell across all divisions; not surprisingly, market conditions were the biggest headache: Brent crude averaged $46.99 a barrel during the third quarter, down 8.4% from the same period last year, while U.S. refining margins averaged less than $14 a barrel, a 35% decline. ExxonMobil's production fell 3% from third-quarter 2015 to 3.8 million barrels of oil equivalent per day, its lowest since 2009.
Executives warned that if energy prices continue on their present path, as many as 3.6 billion barrels of reserves in the Canadian oil sands and another 1 billion barrels of oil equivalent in other North American fields may be written down. This would be the biggest reserves revision in the company's history, which many think is long overdue; ExxonMobil is one of the few companies of its size and influence to have not yet recorded significant changes amid the downturn, and it is under state and federal investigation, including from the U.S. Securities and Exchange Commission, regarding how it evaluates its oil and gas wells.
In the company's Exploration & Production (or upstream) business, profits fell 16% from third-quarter 2015 to $620 million; in the U.S. alone, the upstream business widened its losses to $477 million, from $442 million in the same period last year. In the company's Refining & Marketing (or downstream) business, profits fell 40% from third-quarter 2015 to $1.2 billion, largely due to weaker refining margins.
Despite these setbacks, ExxonMobil is pushing forward with a major joint-venture project with Saudi Basic Industries Corporation (SABIC) (Riyadh, Saudi Arabia): an estimated $6 billion petrochemicals complex, set for Louisiana or Texas, likely in one of four potential locations. The complex would feature units that would produce an estimated 3.96 billion pounds per year of ethylene, as well as polyethylene. For more details, including contact information, necessary equipment and environmental requirements, see Industrial Info's project report.
Industrial Info also is tracking a major addition to an ExxonMobil facility in Texas: the 3 billion-pound-per-year ethylene unit at the olefins complex in Baytown, which also will add outside battery limits (OSBL) features. Both projects are set to be completed in the coming months. The unit will use ethane to produce ethylene as the primary feedstock to support proposed downstream polyethylene units; OSBL will feature aboveground and underground piping, electric, water, civil and steam utilities services. For more information, see Industrial Info's project reports on the ethylene unit and the OSBL additions.
ExxonMobil also is having some luck finding assets overseas. Last week, it announced a billion-barrel discovery off the coast of Nigeria; in the spring of last year, it announced a major discovery in Guyanese waters that it said could eventually produce 1.4 billion barrels. Industrial Info is tracking $1.15 billion in active, Nigeria-based ExxonMobil projects, including the $540 million addition of a captive power unit at the Qua Iboe Crude Oil Storage Terminal, near Uyo. The company plans to construct and install a 540-megawatt (MW), combined-cycle power block, consisting of three 140-MW combustion turbine generator sets and a 120-MW steam turbine generator, at the 4.5 million-barrel-per-day terminal. For more information, see Industrial Info's project report.
ExxonMobil is pushing forward with its proposed acquisition of InterOil Corporation (NYSE:IOC) (Whitehorse, Yukon), whose work is based in Southeast Asia and Oceania, a transaction that is valued at more than $2.5 billion. For more information, see October 11, 2016, article - ExxonMobil Closer to $2.5 Billion-Plus Acquisition of InterOil.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
