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Released November 01, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Leading oil and gas company ExxonMobil Corporation (NYSE:XOM) (Irving, Texas) reported lower earnings and revenues in the third quarter of 2013, as a major decline in refining margins in the Downstream segment more than offset stronger production of oil and natural gas in the Upstream segment. Net income was reported to be $7.87 billion, a 17.76% decrease from third-quarter 2012.
Total revenues stood at $112.37 billion, a 2.4% decrease from the same period last year. Weaker refining margins were largely responsible for the sharp drop in Downstream segment earnings, which fell to $592 million from $2.6 billion. Executives attributed the margins to increased industry capacity. Petroleum products sales also were down, attributed to divestments. Upstream segment earnings improved, however, with stronger liquids and natural gas realizations, as well as improved production volumes and mix effects. Higher commodity margins boosted the Chemicals segment 29.75%.
"Energy markets delivered mixed results compared to the second quarter, with higher crude oil and lower natural gas prices", said David Rosenthal, the vice president of investor relations for ExxonMobil, in a conference call. "Global industry refining margins deteriorated significantly, reflecting moderate demand and improved capacity availability."
Production increased 1.5% from third-quarter 2012 on an oil-equivalent basis, as new projects started up and maintenance-related downtime decreased. Liquids production stood at 2.2 million barrels per day, up 83,000 barrels, while natural gas production stood at 10.91 billion cubic feet per day, down 147 million.
Among the most notable moments for ExxonMobil during the quarter was the commencement of oil and natural gas production at the Kipper Tuna Turrum project, which is operated by Esso Australia Pty Limited (Melbourne, Victoria) offshore Victoria, Australia. The project, which is the largest domestic oil and gas development on the eastern Australia seaboard, derives natural gas from the Tuna Field and oil from the Turra Field.
Capital and exploration expenditures for the quarter were reported to total $10.55 billion, compared with $9.18 billion in third-quarter 2012.
Industrial Info is tracking almost $100 billion in active projects involving ExxonMobil, including $750 million in construction work at the Nabiye Bitumen Production Plant in Cold Lake, Alberta. The project involves constructing buildings and installing supporting equipment to process 30,000 barrels per day (BBL/d) of bitumen produced from oil sands, utilizing "cyclical steam stimulation" technology. The plant is owned by Imperial Oil Limited (TSX:IMO) (Calgary, Alberta), in which ExxonMobil has a 69.6% ownership.
One of several key projects set to start up in 2014 is the $19 billion PNG LNG project in Papua New Guinea, which Rosenthal said is now more than 90% complete. In the third quarter, drilling was completed at the first well pad and commissioning was started at the liquefied natural gas (LNG) plant, in preparation for production startup in the second half of 2014. Rosenthal said the plant has been pressured up with gas to initiate power generation and enable testing of major facilities and equipment.
"In the Permian Basin, we are ramping up activities to develop both conventional and unconventional reservoirs across our leading position of 1.5 million net acres," Rosenthal said. "We currently have eight operated rigs, and have turned almost 100 wells to sales this year across the entire basin. Current net production is more than 90,000 barrels per day. More than 65 workover rigs are also active on our Permian properties, increasing production by opening additional zones and performing fracture stimulation treatments. We are also optimizing development and expanding infrastructure in our CO2 project in the central basin platform area, in order to enhance oil recovery."
For more information, visit Industrial Info's North American Oil and Gas Production Project Database and North American Petroleum Refining Project Database.
View Plant Profile - 3073330 3001761 1080995
View Project Report - 300094242 56000511 87400034
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine 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.
Total revenues stood at $112.37 billion, a 2.4% decrease from the same period last year. Weaker refining margins were largely responsible for the sharp drop in Downstream segment earnings, which fell to $592 million from $2.6 billion. Executives attributed the margins to increased industry capacity. Petroleum products sales also were down, attributed to divestments. Upstream segment earnings improved, however, with stronger liquids and natural gas realizations, as well as improved production volumes and mix effects. Higher commodity margins boosted the Chemicals segment 29.75%.
"Energy markets delivered mixed results compared to the second quarter, with higher crude oil and lower natural gas prices", said David Rosenthal, the vice president of investor relations for ExxonMobil, in a conference call. "Global industry refining margins deteriorated significantly, reflecting moderate demand and improved capacity availability."
Production increased 1.5% from third-quarter 2012 on an oil-equivalent basis, as new projects started up and maintenance-related downtime decreased. Liquids production stood at 2.2 million barrels per day, up 83,000 barrels, while natural gas production stood at 10.91 billion cubic feet per day, down 147 million.
Among the most notable moments for ExxonMobil during the quarter was the commencement of oil and natural gas production at the Kipper Tuna Turrum project, which is operated by Esso Australia Pty Limited (Melbourne, Victoria) offshore Victoria, Australia. The project, which is the largest domestic oil and gas development on the eastern Australia seaboard, derives natural gas from the Tuna Field and oil from the Turra Field.
Capital and exploration expenditures for the quarter were reported to total $10.55 billion, compared with $9.18 billion in third-quarter 2012.
Industrial Info is tracking almost $100 billion in active projects involving ExxonMobil, including $750 million in construction work at the Nabiye Bitumen Production Plant in Cold Lake, Alberta. The project involves constructing buildings and installing supporting equipment to process 30,000 barrels per day (BBL/d) of bitumen produced from oil sands, utilizing "cyclical steam stimulation" technology. The plant is owned by Imperial Oil Limited (TSX:IMO) (Calgary, Alberta), in which ExxonMobil has a 69.6% ownership.
One of several key projects set to start up in 2014 is the $19 billion PNG LNG project in Papua New Guinea, which Rosenthal said is now more than 90% complete. In the third quarter, drilling was completed at the first well pad and commissioning was started at the liquefied natural gas (LNG) plant, in preparation for production startup in the second half of 2014. Rosenthal said the plant has been pressured up with gas to initiate power generation and enable testing of major facilities and equipment.
"In the Permian Basin, we are ramping up activities to develop both conventional and unconventional reservoirs across our leading position of 1.5 million net acres," Rosenthal said. "We currently have eight operated rigs, and have turned almost 100 wells to sales this year across the entire basin. Current net production is more than 90,000 barrels per day. More than 65 workover rigs are also active on our Permian properties, increasing production by opening additional zones and performing fracture stimulation treatments. We are also optimizing development and expanding infrastructure in our CO2 project in the central basin platform area, in order to enhance oil recovery."
For more information, visit Industrial Info's North American Oil and Gas Production Project Database and North American Petroleum Refining Project Database.
View Plant Profile - 3073330 3001761 1080995
View Project Report - 300094242 56000511 87400034
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine 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.
