For all the haters and complainers, here's your sinking ship. $4.69 B Q2. We will gladly enjoy this comeback without you.
Hate on.
34 replies (most recent on top)
Exxon makes something out of something, being profitable is not a major achievement in this industry if you’re big already. I’ve never walked the streets of Dubai looking in awe at the wealth there thinking, “How do these geniuses do it?”
Try making something out of nothing like so many of the 21st century booming industries do — that’s hard.
Yup - profits are goo! All we have to do is take billions and billions and billions in write downs. That makes me feel good. Gotta go....see if I can get in on some Sears stock while the gett'ns good.
@OP, have a look at this video. It's not too long.
The Covid crisis has exposed the major flaws in ExxonMobil strategy and, more serious, the major flaws in the management and corporate culture. This hasn't gone away. High crude prices have the same effect as taking a painkiller when you've got a toothache. It doesn't cure the root cause.
https://www.cnbc.com/video/2021/07/30/jp-morgan-investors-dont-seem-to-want-to-give-chevron-and-exxon-mobil-full-credit-for-whats-going-on-with-oil-prices.html
@1wtc+1c5Eyg40
The only "operating chemical plant" that we have in China is the Fujian JV with Sinopec and Aramco. It was built for $4.5 billion dollars in 2009.
We did issue a press release to Reuters in April 2020 that we kicked off construction on a $10 billion petrochemical complex in south Chinese city Huizhou, state news agency Xinhua reported. The complex, which consists of a 1.6 million tonnes per year ethylene facility, is one of the few mega petrochemical projects in China wholly owned by a foreign investor.
Source: https://www.chemeurope.com/en/news/109505/exxonmobil-celebrates-china-s-fujian-facility-completion.html
ChemEurope
17-Nov-2009 - China Petroleum & Chemical Corporation (Sinopec)
ExxonMobil Celebrates China's Fujian Facility Completion
ExxonMobil and its partners, Sinopec, Fujian Province and Saudi Aramco, celebrated the full operation of China’s first integrated refining and petrochemical facility with foreign participation. This facility, the Fujian Integrated Refining and Ethylene Jo--t Venture Project, will help meet the region’s growing need for fuels and chemical products.
More than $4.5 billion was invested in the complex, which tripled the capacity of the existing refinery to 240,000 barrels per day to produce transportation fuels and other refined products. In addition, the project added a new petrochemical complex that includes an 800,000 tons-per-year ethylene steam cracker, an 800,000 tons-per-year polyethylene unit, a 400,000 tons-per-year polypropylene unit and a 700,000 tons-per-year paraxylene unit.
The complex also features a 250 megawatt cogeneration facility, which will meet the majority of the site’s power demands. Cogeneration is the simultaneous production of electricity and useful heat or steam from waste energy, resulting in lower operating costs and significantly reduced greenhouse gas emissions.
The complex is jointly owned by the Fujian Petrochemical Company Limited (50 percent), ExxonMobil China Petroleum and Petrochemical Company Limited (25 percent) and Saudi Aramco Sino Company Limited (25 percent).
It also is fully integrated with the Fujian Fuels Marketing Jo--t Venture, formally registered as “Sinopec SenMei (Fujian) Petroleum Company Limited,” owned by Sinopec (55 percent), ExxonMobil China Petroleum and Petrochemical Company Limited (22.5 percent) and Saudi Aramco Sino Company Limited (22.5 percent). The venture manages and operates approximately 750 service stations and a network of terminals in Fujian Province.
@1wtc+1c5Eyg40 - ExxonMobil Chemical has a $10B Chemical Plant in China? I don't think so. Prove me wrong by telling me what city in China is the location of the $10B plant.
Exxon's stellar Q2 overshadowed by lack of buybacks as shares slide 2.3%
Jul. 30, 2021 5:54 PM ET
Exxon Mobil Corporation (XOM)
By: Carl Surran, Seeking Alpha News Editor
Exxon Mobil (NYSE:XOM) closed -2.3% in today's trading despite tallying $4.7B in Q2 profits for its best quarterly total in more than a year, and its $9.7B of cash flow from operations was the highest in nearly three years and sufficient to cover dividends, capital investments and debt reduction.
But while Chevron, Shell and TotalEnergies all announced a return to stock buybacks this week, Exxon apparently disappointed investors by resisting the trend, pledging instead to use its extra cash to pay down debt rather than reward shareholders.
A renewal of buybacks that have been suspended since 2016 is "on the table" for consideration, CEO Darren Woods said on today's earnings conference call, but "restoring the strength of our balance sheet, returning debt to levels consistent with a strong double-A rating" is the priority. "I wouldn't see huge shifts in the strategy but you may see accelerations, additional emphasis in areas."
Exxon has less flexibility than peers because of a brutal 2020 and years of overspending, WSJ Heard On The Street's Jinjoo Lee says, as the company's commitment to restraining its capital spending this year has brought debt levels down from the record highs reached last year, but "it will take some time to contemplate splashier cash returns."
Questions also remain over how Exxon plans to allocate long-term capital going forward, especially with the new makeup of its board.
Woods said on the earnings call that the company has engaged in "productive discussions" with the new board but that it was too early to give specifics.
Dang $4.69B! We only need to do this for all 4 quarters in 2021 to afford our total dividend and break even and not have to borrow again! Now if we can just chip away at the $60B+ of debt?
Perhaps you can strap your knee pads tighter and crank out some more life saving PowerPoint presentations OP! Save us all! Troll MF
@OP Cool story. Read on while it gets ripped to shreds.
That $4.69B was made from EM’s plastics business, most of which came from their $10B plant in China. Even if they do as well in same business unit next quarter, the plant still won’t have fully paid for itself. Add to that the fact that inflation is already beginning to drive up operating costs, and that OPEC is due to increase output by October 2021.
EM has yet to recover 2020 losses, has very high debt, and the $4.69B in profits has little to nothing to do with their core business. This isn’t winning; it’s a rear-guard action enabling an orderly retreat.
If all that are eligible would just Lump Sum together, we can sink this ship.
Lost about $50K in 401K match suspension and COLA elimination. So glad that management turned this ship around with their brilliant skills and not because of improving commodity prices. They deserve the big stock awards. Op, you like getting screwed don’t you?
@OP+1c5Eyg40 equals to DW. If not DW, your last name is hips or Lips, such a disgrace to your co-workers. Remember the only thing that you are going to receive for celebrating about the sinking ship is nothing or be PiPed (either way)
Hey OP - you need to smarten up. Companies which are in decline do not go straight down (see General Motors, General Electric, Eastman Kodak). It's the overall trend that matters, and that doesn't look good for EM. Sorry but just the facts. And don't take my word for it. Look at the market reaction. Right now XOM stock is DOWN 2.4% (while the S&P is down only 0.4%). Brutal truth.
'We gave away 700 million on mark to market derivative trading"
Perhaps XOM needs a new CFO?
IIT Boomers who think ExxonMobil is a leading company and the year is still 1985
Three layers of management needs to go start in Annandale, this place is costing the corporation a fortune.. use the sale to pay down dept. YL and Syrup first to go.
Awesome results! I hope this is signaling a swing back in the right direction.
Ha! Enjoy your “gruesome” bonus *ussy
Chemicals had a great quarter - exceeding pre-pandemic numbers.
Time to sell that baby off and stick with Crude trading!
I'm far from an expert on the topic, but for companies like ExxonMobil and Chevron that have very high dividends, isn't it plausible that share buybacks could improve the financial situation of the company by reducing the amount of dividends that have to be paid? They unfortunately tend to be done at times when the share price is high, but at the moment when the share price is quite low I could imagine that it is potentially a good idea.
I just hope EM does not start Stock Buyback again. Chevron announced that it is considering restarting Stock buybacks.
If EM had not thrown away $210 billion in stock buybacks then we would have easily weathered the Covid downturn with zero debt.
Get your life to a better place and stop dragging everyone down around you.
Many are probably foreign agents paid to do this. Dragging everyone down at American companies is their job, and TheLayoff makes it easier than ever.
So now that you’ve posted this. Whose desk do you get to crawl under next?
Agree, great result. I’m happy to see positive results. Haters on here I really do hope you can find a happy place. Either with change here or elsewhere. You should not go through life as unhappy as people are on this site. Get your life to a better place and stop dragging everyone down around you.
And our stock price dropped by $1.00 USD after our 2nd quarter earnings annoucement.
@OP - And 5 years ago, the company made $10B profit each quarter. What's your point ?
This is all thank to Biden. Oil $72.
OP, when you calculate how many millions you’ve earned the company in your EADS, ask yourself how much of that was returned to you.
The answer is all your productivity went straight to DW’s pockets. You are cheering on the folks that are robbing you. You are the ultimate victim of propaganda and here you are victimizing others who simply want to be treated like human beings at their workplace.
This is a big nothing burger. We gave away 700 million on mark to market derivative trading, what a farce, once again out Supply trading group has absolutely no idea what they are doing, unbelievable. We paid down 3 billion in debt, whoopee, only 57 billion to go. Refining is still out of control, we have too many refineries that are underperforming with ridiculously low margins, high costs to operate and many need to be shut down, but we continue to operate, hence we lose 230 million in the Downstream. We are harvesting Permian and other Upstream operations and putting nothing back into those operations so they look good now, but that will come back and bite us in the bu-t in a year or two. And what a waste of money being spent on low carbon strategies that have zero returns. Higher crude and chemicals margins saved us this quarter, but with OPEC+ increasing their outputs and chemical margins tightening the back half of 2021 is going to be tough. We are still way behind our competition in just about every indice such as Chevron that has now resumed stock buybacks. We need to PIP three layers of Management and quit PIPing the people that do work and make money for this company. And get rid of our mark to market supply group that loses 2-3 billion or more every year since 2018. And whatever happened to our divestment program, we have too many assets throughout the Corporation that need to go? $16B in annual CAPEX does not get the job done for future growth by any means, does not even cover annual depreciation of $20B, probably does not even cover annual required maintenance, which means we are in a harvest mode, not good. Our cr-p management put us here, with their cr-p plans, and unfortunately we have the same cr-p managers running the PIPSTELLATION.
Indeed! Net Income, OCF, REVs all better than Shells Q2, which is by far the most efficient major.
Sinking ship? I think not even close.
This amount is simply the result of the high oil prices. The fundamentals are the same: EM has a low quality portfolio that brings profits only at high prices. The other majors will also have a great quarter, but better than us. To pretend that a high profit during high prices is something to cheer shows that you either ignore EM’s situation or you are a payed propagandist.
XOM was the most valuable company in the world by market capitalization in Q1 2013, ahead of Apple. Where is it now only 8 years later?
XOM shareholders not impressed with XOM strategy.
Dow Chemical made ~3B profit on ~11B revenue. XOM ~5B in ~67B revenue.
How much of that value did you get in raises, benefits, bonuses, or just general respect from management?
Greed and fake optimism. Not everything is about money. Go back to your cave and supervise technicians/bunch of yes men/women in BTC/ fill excel as planner and make leadership achievement bullets in PowerPoint.