Exxon Corporation Reports Record 1997 Net Income of $8,460 Million

Strategic Insights -

Exxon Corporation, the leading international oil and gas company, reported a record net income of $8,460 million in 1997, representing a 13% increase from the previous year's net income of $7,510 million. This achievement marks the third consecutive year of record earnings for the company. On a per-share basis, net income was $3.41 compared to $3.01 in 1996. The strong financial performance was attributed to improved downstream margins, higher petroleum product and chemical sales, and lower unit operating expenses.

Key Takeaways:

  • Exxon's full-year 1997 capital and exploration expenditures were $8,817 million, a decrease from 1996 due to a stronger U.S. dollar.
  • Fourth-quarter 1997 net income of $2,500 million was a quarterly record, with net income per share of $1.01 compared to $1.00 in the same period last year.
  • Despite non-recurring credits, fourth-quarter 1997 earnings increased 5% from the prior year's fourth quarter, with earnings from U.S. refining and marketing up 63% and outside the U.S. refining and marketing up 163%.
  • Full-year 1997 chemical earnings increased 18% to a record $1,368 million, driven by strong sales volumes and improved margins.
  • Exxon purchased 43.2 million shares of its common stock for the treasury at a cost of $2,587 million in 1997.
  • The company's share buyback program allows for the purchase of shares in open market and negotiated transactions, which can be discontinued at any time.

Statistics:

  • 1997 net income: $8,460 million
  • 1996 net income: $7,510 million
  • Per-share net income: $3.41 (1997), $3.01 (1996)
  • Fourth-quarter net income: $2,500 million (1997), $2,327 million (1996)
  • Capital and exploration expenditures: $8,817 million (1997), $9,226 million (1996)
  • Chemical earnings: $316 million (fourth quarter 1997), $267 million (fourth quarter 1996)
  • Prime product sales: 4,374 kt (fourth quarter 1997), 3,864 kt (fourth quarter 1996)
  • Shares outstanding: 2,456.3 million (end of fourth quarter 1997), 2,465.9 million (end of fourth quarter 1996)

Sources:

  • Exxon Corporation
  • PR Newswire (January 21, 1998)
  • Exxon Corporation's 1997 Annual Report
  • Exxon Corporation's 1997 Fourth-Quarter Earnings Release