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Researched by Industrial Info Resources (Sugar Land, Texas)--First-quarter 2019 earnings for Exxon Mobil Corporation (ExxonMobil) (NYSE:XOM) (Irving, Texas) fell 49% from a year earlier, but that isn't stopping the energy giant from making progress on several big projects. Industrial Info is tracking nearly $11 billion in ExxonMobil projects that are assessed as having a high probability of moving forward as planned.
Click on the image at right for a graph showing ExxonMobil's high-probability project activity by industry.
ExxonMobil reported $2.4 billion in first-quarter earnings, compared with $4.7 billion a year earlier. Company executives indicated the results of the company's downstream and chemical business were largely to blame.
During the quarter, the company experienced "a margin environment that for both the downstream and chemical business lines was extremely challenging," said Neil Hanson, senior vice president, investor relations, during ExxonMobil's earnings conference call with industry analysts.
"Fundamentals and demand remain strong. Near-term supply-and-demand imbalances pressured margins. In fact, in the downstream, to the lowest levels we've seen in the last decade," Hanson added.
Refining margins weakened due to excess gasoline supply, he continued. Global downstream earnings plunged from $940 million in first-quarter 2018 to a loss of $256 million in the just-ended quarter, the company reported. Refining margins are expected to recover in the second quarter, Hanson said.
ExxonMobil refineries had a heavy maintenance slate during the quarter as they geared up for the International Marine Organization's 2020 low-sulfur diesel fuel standards, the company reported. For related information, see December 17, 2018, article - EIA: IMO Marine Fuel Regulations Pose Challenge to Refineries.
The company noted major refinery-related final investment decisions that were made during the first quarter. Last week, the company announced a final investment decision to increase ultra-low sulfur diesel at its Fawley, U.K., refinery. Industrial Info is tracking more than $665 million in activity tied to the Fawley Refinery Upgrade Project. Click here to for the upgrade project list.
Also last quarter, the company announced it made a final investment decision on an expansion of its integrated manufacturing complex in Singapore to convert fuel oil and other residual crude products into higher-value lube base stocks and distillates. Industrial Info is tracking $1.75 billion in activity tied to its Chemicals & Refining Integrated Singapore Project. Click here for the list of projects.
In the U.S., a final investment decision was made to build a new unit at ExxonMobil's Beaumont, Texas refinery that will increase crude refining capacity by 250,000 barrels per day. Startup of the new unit is planned for 2022. For more information, see Industrial Info's project report.
Global chemical earnings dropped from more than $1 billion in first-quarter 2018 to $518 million in the just-ended quarter. Hanson said chemical demand remains strong and is expected to grow 3% per year, but recent capacity additions have outpaced demand, driving down prices. On the U.S. Gulf Coast alone, the industry has added nearly 5 million tons per year of polyethylene capacity since 2017. Polyethylene margins have declined 45% since 2015, he added.
A return to a more balanced chemicals market isn't expected any time soon, company executives said during the earnings conference call.
ExxonMobil's 1.4 billion-pound-per-year low density polyethylene unit addition in Beaumont is on track to start up in third-quarter 2019, according to the company. It is currently in the final commissioning stage. For more information, see Industrial Info's project report.
In March, the company said it will fund the construction of a new polypropylene unit in Baton Rouge, Louisiana, that will expand production by up to 450,000 tons per year. The start of production is expected in 2021. For more information, see Industrial Info's project report.
Also in the first quarter, ExxonMobil and partner Qatar Petroleum announced they had made a final investment decision on the Golden Pass LNG export project in Sabine Pass, Texas. The project will have a capacity of about 16 million tons per year of liquefied natural gas (LNG). The facility is expected to start production in 2024. For more information on Golden Pass Train 1, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
ExxonMobil reported $2.4 billion in first-quarter earnings, compared with $4.7 billion a year earlier. Company executives indicated the results of the company's downstream and chemical business were largely to blame.
During the quarter, the company experienced "a margin environment that for both the downstream and chemical business lines was extremely challenging," said Neil Hanson, senior vice president, investor relations, during ExxonMobil's earnings conference call with industry analysts.
"Fundamentals and demand remain strong. Near-term supply-and-demand imbalances pressured margins. In fact, in the downstream, to the lowest levels we've seen in the last decade," Hanson added.
Refining margins weakened due to excess gasoline supply, he continued. Global downstream earnings plunged from $940 million in first-quarter 2018 to a loss of $256 million in the just-ended quarter, the company reported. Refining margins are expected to recover in the second quarter, Hanson said.
ExxonMobil refineries had a heavy maintenance slate during the quarter as they geared up for the International Marine Organization's 2020 low-sulfur diesel fuel standards, the company reported. For related information, see December 17, 2018, article - EIA: IMO Marine Fuel Regulations Pose Challenge to Refineries.
The company noted major refinery-related final investment decisions that were made during the first quarter. Last week, the company announced a final investment decision to increase ultra-low sulfur diesel at its Fawley, U.K., refinery. Industrial Info is tracking more than $665 million in activity tied to the Fawley Refinery Upgrade Project. Click here to for the upgrade project list.
Also last quarter, the company announced it made a final investment decision on an expansion of its integrated manufacturing complex in Singapore to convert fuel oil and other residual crude products into higher-value lube base stocks and distillates. Industrial Info is tracking $1.75 billion in activity tied to its Chemicals & Refining Integrated Singapore Project. Click here for the list of projects.
In the U.S., a final investment decision was made to build a new unit at ExxonMobil's Beaumont, Texas refinery that will increase crude refining capacity by 250,000 barrels per day. Startup of the new unit is planned for 2022. For more information, see Industrial Info's project report.
Global chemical earnings dropped from more than $1 billion in first-quarter 2018 to $518 million in the just-ended quarter. Hanson said chemical demand remains strong and is expected to grow 3% per year, but recent capacity additions have outpaced demand, driving down prices. On the U.S. Gulf Coast alone, the industry has added nearly 5 million tons per year of polyethylene capacity since 2017. Polyethylene margins have declined 45% since 2015, he added.
A return to a more balanced chemicals market isn't expected any time soon, company executives said during the earnings conference call.
ExxonMobil's 1.4 billion-pound-per-year low density polyethylene unit addition in Beaumont is on track to start up in third-quarter 2019, according to the company. It is currently in the final commissioning stage. For more information, see Industrial Info's project report.
In March, the company said it will fund the construction of a new polypropylene unit in Baton Rouge, Louisiana, that will expand production by up to 450,000 tons per year. The start of production is expected in 2021. For more information, see Industrial Info's project report.
Also in the first quarter, ExxonMobil and partner Qatar Petroleum announced they had made a final investment decision on the Golden Pass LNG export project in Sabine Pass, Texas. The project will have a capacity of about 16 million tons per year of liquefied natural gas (LNG). The facility is expected to start production in 2024. For more information on Golden Pass Train 1, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
