By the OGJ Online Staff
HOUSTON, Jan. 23 -- ExxonMobil Corp.'s 2001 upstream earnings of $10.4 billion were down 16% from 2000, but downstream earnings were up 24% to a record high of $4.2 billion.
Lower crude prices, down 18%, depressed the upstream sector. Higher US refining margins and improved marketing outside the US were responsible for the downstream boost, said Chairman Lee R. Raymond.
He said 2001 capital spending was up more than $1 billion dollars over 2000 to $12.3 billion. Upstream spending increased by 27%.
"Upstream volumes in 2001, on an oil equivalent basis, were up 1% excluding the effect of reduced natural gas production operations in Indonesia due to security concerns," said Raymond. "Increases in capacity from new projects should result in an annual average of 3% growth over the next several years. Actual production, however, is also affected by political and project start-up issues, as was experienced in 2001."
Overall, ExxonMobil's total 2001 earnings, excluding merger effects and special items, were $15.6 billion, down 8% from the record set in 2000 but still the second highest ever for the company.
Fourth quarter earnings excluding merger effects were $2.9 billion. Upstream earnings were $1.7 billion, down $2.1 billion from the record fourth quarter of 2000. The decrease reflected lower crude oil and gas prices.
Also in the fourth quarter, downstream earnings of $1 billion were $139 million lower than the same period in 2000, reflecting weaker refining margins, particularly in the US and Europe. Sales volumes were down slightly, reflecting weaker aviation demand.
