HOUSTON -- "Despite ongoing global economic weakness and reduced demand for products, we continued our robust investment program and delivered strong results," said Exxon Mobil Corp. chairman Rex Tillerson in announcing the company's third-quarter results this week.
Upstream earnings, excluding special items, were $4.0 billion down $5.3 billion from the third quarter of 2008. Lower crude-oil and natural-gas realizations accounted for the majority of the decline, reducing earnings approximately $4.9 billion while higher operating costs reduced earnings approximately $300 [image-nocss] million.
On an oil-equivalent basis, production increased nearly 3% from the third quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 5%.
Earnings from U.S. upstream operations were $709 million, $1.2 billion lower than the third quarter of 2008. Non-U.S. upstream earnings, excluding special items, were $3.3 billion, down $4.2 billion from last year.
Downstream earnings of $325 million were down $2.7 billion from the third quarter of 2008. Lower refining margins drove the decline, reducing earnings $2.6 billion. Petroleum product sales of 6,301 kbd were 387 kbd lower than last year's third quarter, mainly reflecting asset sales and lower demand.
The U.S. downstream recorded a loss of $203 million, down $1.2 billion from the third quarter of 2008. Non-U.S. downstream earnings of $528 million were $1.5 billion lower than last year.
For the first nine months of 2009, earnings of $13.2 billion ($2.71 per share) decreased $24.2 billion from 2008. Excluding special items, earnings for the first nine months of 2009 were $13.4 billion, a decrease of $22.9 billion from 2008.
Upstream earnings, excluding special items, were $11.3 billion, down $16.8 billion from 2008. Lower crude oil and natural gas realizations decreased earnings approximately $15.8 billion, while higher operating costs reduced earnings about $1.0 billion.
Downstream earnings of $2.0 billion were $3.8 billion lower than 2008. Weaker margins decreased earnings approximately $2.8 billion. Lower volumes and refinery optimization due to weaker demand reduced earnings about $500 million, while higher operating costs resulted in a $300 million decline in earnings.
Petroleum product sales of 6,407 kbd decreased from 6,761 kbd in 2008, mainly reflecting asset sales and lower demand.
U.S. downstream earnings were $134 million, down $1.5 billion. Non-U.S. downstream earnings were $1.8 billion, $2.2 billion lower than last year.
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