As per Exxonmobils' Chairman, "ExxonMobil's strong results in the third quarter of 2008 demonstrate the continued success of our disciplined business approach. Third quarter earnings excluding special items were a record $13,380 million, up 42% from the third quarter of 2007. Earnings per share excluding special items were up 52% reflecting the benefit of the share purchase program. Record net income for the third quarter of $14,830 million was up 58% from the third quarter of 2007. Net income included an after-tax special gain of $1,620 million from the sale of a natural gas transportation business in Germany and an after-tax special charge of $170 million reflecting a provision for interest related to the Valdez punitive damages award. Earnings for the first nine months of 2008 excluding special items were $36,240 million, an increase of 25% over the first nine months of 2007. Net income for the first nine months of 2008 was $37,400 million, up 29% versus 2007.
"Third quarter results include impacts of Hurricanes Gustav and Ike which affected U.S. Gulf Coast operations during the period. We responded quickly and effectively to maximize supplies of gasoline and other products to the marketplace. The majority of our operations are back on-line or are completing the final stages of start-up. At our Beaumont Chemical facilities, we continue to progress repairs and start-up planning after experiencing significant flooding during Hurricane Ike. Quarterly upstream volumes were down 24 thousand oil equivalent barrels per day and costs were higher by $50 million before tax due to the hurricanes. Damage repairs and lower volumes across all business lines associated with the hurricanes are expected to reduce fourth quarter earnings by about $500 million.
"Despite the continuing uncertainty in world financial markets, ExxonMobil has maintained a strong financial position. We plan to continue our disciplined capital investments with our full year capital and exploration expenditures projected to be about $25 billion, consistent with previous guidance. In the third quarter of 2008, capital and exploration project spending increased to $6.9 billion, up 26% from last year. For the first nine months of 2008, spending on capital and exploration projects was $19.3 billion. Through these investments we continue to make a substantial contribution to employment and economic activity in the countries in which we operate.
" Earnings excluding special items were a record $13,380 million, an increase of 42% or $3,970 million from the third quarter of 2007.
" Earnings per share excluding special items were up 52% to $2.59 reflecting strong earnings and the continued reduction in the number of shares outstanding.
" Net income was a record at $14,830 million, up 58% from the third quarter of 2007.
" Third quarter 2008 net income included an after-tax special gain of $1,620 million from the sale of a natural gas transportation business in Germany and an after-tax special charge of $170 million reflecting a provision for interest related to the Valdez punitive damages award.
" Capital and exploration expenditures were $6.9 billion, up 26% from the third quarter of 2007.
" Share purchases of $8.0 billion reduced shares outstanding by 2.1%.
" Cash flow from operations and asset sales was approximately $17.0 billion, including asset sales of $2.6 billion.
" The ExxonMobil-operated Kizomba C deepwater development started production from the Saxi and Batuque fields. Combined with the Mondo field, which came on stream in January, the Kizomba C project is now producing 200,000 barrels of oil per day (gross). The Kizomba C development, located off the coast of Angola, is designed to produce an estimated 600 million barrels of oil (gross) over the life of these three fields.
ExxonMobil announced the start-up of the East Area Natural Gas Liquids II project, located offshore Nigeria. The project started ahead of schedule and is expected to recover more than 275 million barrels of natural gas liquids from several East Area fields, which will help monetize gas resources and reduce gas flaring. At its peak, the project is expected to produce 50,000 barrels of natural gas liquids per day.
(Press Release)
31-Oct-08 
