IRVING, Texas -- Exxon Mobil Corp. has reported fourth-quarter 2005 results. Earnings excluding special items were $10.32 billion ($1.65 per share), an increase of $1.9 billion (23%) from fourth-quarter 2004 and a record quarterly profit for a U.S. company. Fourth-quarter net income included a special gain of $390 million from the resolution of a previously disclosed litigation issue. Including this gain, net income of $10.71 billion ($1.71 per share) increased by $2.29 billion.
ExxonMobil's Chairman Rex W. Tillerson said, There is a great deal of public [image-nocss] interest in global energy prices. We recognize that consumers worldwide want and need reliable supplies of affordable energyto fuel their vehicles, light and heat their homes and run their businesses. Our strong financial results will continue to allow us to make significant, long-term investments required to do our part in meeting the world's energy needs.
He added, ExxonMobil continued its active investment program in the fourth quarter, spending $5.3 billion on capital and exploration projects, bringing full year spending to $17.7 billion, an increase of 19% or $2.8 billion versus 2004. The corporation distributed a total of $6.8 billion to shareholders in the fourth quarter through dividends and share purchases to reduce shares outstanding. Distributions to shareholders totaled $23.2 billion for the full year, an increase of 56% or $8.3 billion versus 2004.
Cash flow from operations and asset sales was approximately $11.9 billion, including asset sales of $1.4 billion.
Share purchases to reduce shares outstanding of $5 billion were at the same level as third-quarter 2005.
Upstream earnings were $7.038 billion, up $2.151 billion from fourth-quarter 2004 reflecting higher crude oil and natural gas realizations. On an oil-equivalent basis, production decreased by 1% from fourth-quarter 2004. Excluding the residual impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production increased 2%. Earnings from U.S. upstream operations were $1.787 billion, $403 million higher than fourth-quarter 2004.
Downstream earnings were $2.39 million, up $46 million from fourth-quarter 2004. Higher refining and marketing margins were partly offset by residual impacts from hurricanes Katrina and Rita. Petroleum product sales were 8,322 kbd, 124 kbd lower than last year's fourth quarter, primarily due to the hurricanes. U.S. downstream earnings were $1.158 billion, up $282 million.
Full-year 2005 versus full-year 2004, net income of $36.13 billion ($5.71 per share) increased $10.8 billion from 2004. Net income for 2005 included special items totaling $2.27 billion. Excluding special items in both periods, earnings increased by $8 billion versus 2004.
Earnings excluding special items were $33.86 billion, an increase of 31%, with strong contributions from all segments of the business. Net income increased by 43%. Earnings per share excluding special items increased by 35% reflecting strong earnings and the reduction in the number of shares outstanding.
Cash flow from operations and asset sales was approximately $54.2 billion, including $6 billion from asset sales.
The corporation distributed a total of $23.2 billion to shareholders in 2005 through dividends and share purchases to reduce shares outstanding, an increase of $8.3 billion versus 2004.
Capital and exploration expenditures were $17.7 billion, an increase of $2.8 billion versus 2004.
Upstream earnings excluding special items were $22.729 billion, an increase of $6.054 billion from 2004.
On an oil-equivalent basis, production decreased 3.6% from last year. Excluding the impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production decreased by 1%.
Earnings from U.S. upstream operations for 2005 were $6.2 billion, an increase of $1.252 billion.
Downstream earnings excluding special items were $7.882 billion, an increase of $1.626 billion from 2004 reflecting stronger worldwide refining margins partly offset by weaker marketing margins. Petroleum product sales of 8,257 kbd increased from 8,210 kbd in 2004. U.S. downstream earnings excluding special items were $4.111 billion, up $1.375 billion.
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