Yahoo Finance ExxonMobil: The year that was sees net income of $32.5 billion
Revenues and production down in 2014
Having discussed ExxonMobil’s (XOM) 4Q14 results in previous sections of this series, we’ll turn to look at its 2014 performance in this article.
In fiscal 2014, ExxonMobil’s (XOM) revenues dropped to $411.94 billion, down 6% from $438.25 billion recorded in 2013.
Total upstream production was down 4.9% compared to the same period in 2013 on an oil-equivalent basis. Liquids production decreased, mainly due to the Abu Dhabi concession expiry, which was partially offset by project ramp-ups.
Natural gas production also decreased due to lower activity in the United States and decreased demand in Europe. The production decline was partially offset by project ramp-up and work programs.
Steady net income in 2014
ExxonMobil’s (XOM) net income for 2014 remained unchanged at ~$32.5 billion from the same period a year ago. Net income margin improved to 7.9%, up from 7.4% during the same period a year ago. EPS (earnings per share) in 2014 was $7.60 versus $7.37 in 2013.
Analysis of ExxonMobil’s 2014 segment earnings
Upstream
ExxonMobil’s (XOM) overall 2014 Upstream earnings increased 2.3% over 2013. US Upstream improved 24%, while non-US earnings dipped by ~1%. Despite a fall in production and prices, earnings improved due to a better mix effect and profit from asset sales. During the first nine months of 2014, ExxonMobil recorded $4 billion in proceeds from asset sales.
ExxonMobil’s price realization decreased ~31% in 4Q14 over 4Q13 in both its US and non-US operations.
Downstream
Downstream earnings in the United States decreased 11.7% in 2014 due to volume and mix effect, while lower expenses helped margins recover partially. Sales volume in the refinery segment went down in 2014. Earnings from its non-US operations went up 14% in 2014. Downstream earnings were also negatively affected by unfavorable foreign exchange and tax impacts.
Petrochemical
Earnings from ExxonMobil’s Petrochemical business increased 12% in 2014 over the same period in 2013. This segment witnessed all-around growth, driven by higher commodity-driven margins and higher volume.
In comparison, 2014 earnings for BP (BP), another energy giant, decreased by 83%. Chevron’s (CVX) net income decreased by 38% in 2014. Hess Corporation (HES), a New York-based energy major, recorded a 54% fall in net income in 2014 over the previous year.
ExxonMobil (XOM) is a component of the Energy Select Sector SPDR ETF (XLE) and the SPDR MSCI World Quality Mix ETF (QWLD). Hess Corporation (HES) makes up 1.4% of XLE.
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