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5959 Las Colinas Boulevard Phone +1 972 4441000 Revenue 310,586 (million USD)
Irving, TX Fax +1 972 4441348 Net Profit 19,280 (million USD)
75039 Website www.exxonmobil.com Employees 80,700
United States Exchange XOM [New York Stock Exchange] Industry Energy and Utilities
Company Overview
Exxon Mobil Corporation (ExxonMobil) is an integrated oil and gas company. The company is engaged in exploration and
production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum
products. ExxonMobil is also involved in the commodity petrochemicals and holds interests in electricity generation facilities. It
operates in more than 200 countries across the globe with a number of brand names including ExxonMobil, Exxon, Esso and
Mobil. The company is headquartered in Irving, the US.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Profitability Ratios........................................................................................................................................................................................................ 42
Cost Ratios.................................................................................................................................................................................................................. 43
Efficiency Ratios.......................................................................................................................................................................................................... 44
List of Figures
Exxon Mobil Corporation, Performance Chart (2005 - 2009) ...................................................................................................................................... 34
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Rex W. Tillerson Mr. Tillerson has been the Chairman and the Chief Executive Officer of
Exxon Mobil since 2006. He was the Senior Vice President of the
Job Title: Chairman, Chief Executive Officer company during 2001-2004. He also held many management positions in
Board Level: Executive Board domestic and foreign operations since he joined the company in 1975,
including those of the President, Exxon Yemen Inc. and Esso Exploration
Since: 2006 and Production Khorat Inc.; the Vice President, Exxon Ventures (CIS)
Age: 58 Inc.; the President, Exxon Neftegas Limited and the Executive Vice
President, Exxon Mobil Development Company.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Products:
Crude oil
Natural gas
Electricity
Refined products:
Gasoline
Diesel
Furnace oil
Bitumen
Lubricants
Petroleum specialties
Chemicals:
Aliphatic fluids
Aromatic fluids
Olefins
Higher alcohols
Plasticizers
Oxygenated fluids
Neo acids
Polymers:
Butyl polymers
EPDM rubber
Specialty elastomers
Santoprene TPEs
Polyethylene
Olefins
Polypropylene
Plastomers
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Functionalized polymers
Polymer films:
OPP films
Services:
Service stations
Convenience stores
Brands:
Exxon
Esso
Mobil
Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
2009 Contracts/Agreements In Nov 2009,Nigeria renewed three oil leases involving joint ventures
operated by the company. An agreement reached on the terms of new
leases that will run for a further 20 years with an option to renew.
2008 Contracts/Agreements On April 14, 2008, ExxonMobil Exploration and Production Hungary
Limited, a subsidiary of ExxonMobil, and MOL Hungarian Oil and Gas Plc.
(MOL) announced an agreement to start a joint exploration program in
blocks 106 and 107 in the Mako Trough, Southeast Hungary. ExxonMobil
will fund the work program and receive a 50% interest in the acreage
upon completion. MOL will retain the remaining 50% interest. This
exploration program covers 387,000 acres.
2008 Acquisitions/Mergers/Takeovers In 2008, the compay's affiliate, ExxonMobil Exploration and Production
Romania Limited, have signed an agreement with Petrom SA to help
explore deepwater portions of the Neptun Block offshore Romania.
2008 New Products/Services ExxonMobil Chemical Company Introduced a new product for Packaging
and Agricultural Greenhouse Films with the Potential to Reduce Waste
and Energy Consumption in 2008.
2008 Contracts/Agreements The company signed an agreement with Petrom SA to help explore
deepwater portions of the Neptun Block offshore Romania during
December 2008.
2007 Other In February 2007, Exxon Mobil completed the phase one of the Sakhalin-
1 project offshore Eastern Russia with affiliates of Rosneft, RN-Astra and
Sakhalinmorneftegas-Shelf, Sakhalin Oil and Gas Development Company
and ONGC Videsh Limited.
2007 Other In March, Sinopec, Fujian Province, Exxon Mobil and Saudi Aramco
received the government approval for the Fujian Refining and Ethylene
Joint Venture Project. The Chinese government granted the business
licenses for their two joint ventures in Fujian Province, Fujian Refining &
Petrochemical Company Limited and Sinopec SenMei Petroleum
Company Limited.
2007 Corporate Changes/Expansions The two joint ventures, with a total investment of about $5 billion, will be
Exxon Mobil’s first fully integrated refining, petrochemicals and fuels
marketing project with foreign participation in China.
2006 Corporate Changes/Expansions Exxon Mobil expanded its lubricants distribution network across Germany
and Poland during February 2006.
2006 Contracts/Agreements In 2006, the company signed agreements with Abu Dhabi National Oil
Company (ADNOC) in March 2006; through which Exxon Mobil receives a
28% undivided interest out of ADNOC's exploration and production
activities in the Upper Zakum oil field. The company also entered an
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
2006 Other In 2006, Mobil Pipe Line Company (MPLCO), an affiliated company,
commenced the delivery of Canadian crude to the U.S. Gulf Coast during
April 2006 through an 858-mile crude oil pipeline that runs from Patoka,
Illinois to Nederland, Texas. In May 2006, Exxon Mobil Chemical and
Mitsubishi Chemical Corporation (MCC) agreed to terminate certain joint
venture agreements for Mytex Polymers Asia Pacific Private Limited
(Mytex AP) and Mytex Polymers Partnership (Mytex US). In Nigeria, the
company started production from the Erha deepwater development,
located approximately 60 miles (97 kilometers) offshore Nigeria.
2006 New Products/Services Exxon Mobil introduced new products in 2006, including polypropylene for
the automotive industry and turbine oils for Mitsubishi Heavy Industries
(MHI) gas and steam turbines.
2006 Corporate Changes/Expansions ExxonMobil extended its technology partnership with Team McLaren
Mercedes to supply the Formula 1 racing team with Mobil 1-branded
motor oils and high-performance fuels.
2006 Corporate Changes/Expansions In July 2006, ExxonMobil Middle East Gas Marketing Limited, a wholly
owned subsidiary of the company signed the development plan and the
launch of the Al Khaleej Gas-Phase Two (AKG-2) project with the State of
Qatar and Qatar. With this, the company completed the initial stage of the
project, AKG-1, which was started in November 2005.
2005 Other The company sold its 3.7% stake in China Petroleum and Chemical
Corporation (Sinopec) in March 2005.
2005 Contracts/Agreements Qatar Petroleum, Exxon Mobil and Edison entered an agreement in May
2005 for developing a liquefied natural gas (LNG) terminal, offshore the
coast of Italy in the North Adriatic Sea.
2005 Contracts/Agreements In September 2005, the company entered into a five-year supply
agreement with Caterpillar, to supply Caterpillar oils to the Caterpillar
factories and dealers worldwide. Further, Exxon Mobil Chemical Company
entered into a product distribution agreement with R T Vanderbilt in
December 2005, to distribute Exxon Mobil’s commercial Vistalon Ethylene
Propylene Diene Rubber - EP(D) M products in North America.
2005 Plans/Strategy In 2005, the company also announced its plans to convert its 71 Tiger
market convenience stores in Nashville and Memphis to its flagship On
the Run convenience store brand. The company introduced many new
products during 2005 including motor oils and multi-purpose greases for
the food-processing industry.
2004 Contracts/Agreements Exxon Mobil Chemical entered into an agreement with BP Chemicals in
2004, to acquire sales and marketing assets of the BP European
Isopropyl Alcohol (IPA) business. Also, the government of the State of
Qatar and an Exxon Mobil subsidiary, Exxon Mobil Qatar GTL, entered
into a heads of agreement (HOA) for a gas-to-liquid (GTL) project worth
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
2004 Corporate Changes/Expansions In 2004, the company strengthened its exploration and production
activities in Angola and Columbia. Exxon Mobil also received Euro 1.39
billion from the sale of its stake in the pipeline unit of Gasunie to the Dutch
government.
2003 New Products/Services In 2003, the company launched its first synthetic blend motor oil for high-
mileage engines.
2003 Corporate Changes/Expansions In 2003, the company consolidated its U.S. East and U.S. West
production organizations to improve business performance. Towards the
end of 2003, Exxon Mobil announced that its subsidiary, Mobil North Sea
(MNSL), made a gas discovery in the Southern sector of the North Sea,
following the successful testing of an exploration well (about 32 miles east
of Bacton, U.K.).
2002 Corporate Changes/Expansions Exxon Mobil created a new business venture, EMTG in 2002, to expand
the commercial product and service line of the company's Mobil Travel
Guide series. During 2002, the company disposed its coal and mineral
business to focus on its core operations.
2000 Corporate Changes/Expansions In 2000, the company completed its $2 billion Sable Offshore Energy
Project, located off the coast of Nova Scotia, Canada.
1999 Incorporation/Establishment Exxon Mobil was formed in 1999 through the merger of Exxon and Mobil.
1882 Incorporation/Establishment Standard Oil of New Jersey (Jersey Standard) and Standard Oil of New
York (Socony), the chief predecessor companies of Exxon and Mobil, can
be traced to the 1882, when Mr. John D. Rockefeller acquired various
petroleum interests and organized them under the Standard Oil Trust.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
A statement by Mr. Rex W. Tillerson, the Chairman and the Chief Executive Officer of ExxonMobil is given below.
The statement has been taken from the company’s 2009 annual report.
To Our Shareholders
ExxonMobil’s 2009 results demonstrated again the strength of our business model and our ability to excel under even
the most challenging economic conditions. We confirmed once again that we are committed to a long-term vision of
investing with discipline, improving operational efficiency, and increasing shareholder value.
In the midst of the global economic downturn of the past year, all three of our businesses – Upstream, Downstream,
and Chemical – continued to lead the industry worldwide in performance. Earnings were $19 billion. Return on
average capital employed (ROCE) was 16 percent. Cash flow from operations and asset sales was $30 billion. For
our shareholders, our leadership in 2009 has allowed us to return value to them. Through our dividends and share
buybacks, our Corporation distributed a total of $26 billion to our shareholders in 2009. Over the past five years, we
have distributed a total of more than $150 billion to our shareholders.
Energy is the lifeblood of modern economies.For this reason, ExxonMobil continues to invest for the long term,
secure in the belief that economic growth will return. In 2009, our capital and exploration expenditures were $27
billion. Over the next five years, we will continue to invest record amounts, more than $125 billion, to advance new
technologies, deliver new Upstream projects, increase production of higher-value refined products, and grow our
Chemical business.
Another important measure of our long-term commitment to excellence is our industry-leading safety record. In 2009,
we achieved best-ever lost time incident rates for our combined employee and contractor workforce. We continue to
demonstrate our commitment to improving environmental performance and reducing environmental impacts. In 2009,
we recorded zero spills from company owned and operated marine vessels and reduced Upstream hydrocarbon
flaring by over 20 percent.
For our Upstream business, 2009 was a strong year. Together with our partners, we started up eight major projects in
the United States, the United Kingdom, Norway, Italy, and Qatar. These projects not only deliver new supplies of
crude oil and natural gas to the world, but also provide significant value for resource owners and for our shareholders.
In 2009, ExxonMobil and XTO Energy announced an all-stock transaction that will enhance ExxonMobil’s position in
the development of unconventional natural gas and oil resources. We are confident that the combination of our
complementary strengths will open new opportunities to meet growing global energy demand and build value for our
shareholders.
In our Downstream and Chemical businesses, we have maintained our long-term strategic approach during the
recent economic downturn. Around the world, we continued to capture new efficiencies and benefit from our
integration and operating flexibility, helping us to maximize the value of our assets and resources. In 2009, in the
growing Asia Pacific market, we and our partners successfully started up China’s first integrated refining and
petrochemical complex with foreign participation. We remain focused on operational excellence and the disciplined
execution of our business strategies, which position us well for the future.
Underpinning success across all of our businesses is our commitment to technology. We have invested more than $4
billion in research and development over the last five years. These investments have led to several technological
breakthroughs that enable us to map undersea reservoirs, drill horizontally under arctic oceans, and efficiently
transport cleaner-burning natural gas to markets worldwide. We have also worked with vehicle manufacturers to
improve fuel economy through advanced plastics, new tire-lining technology, and synthetic lubricants. In 2009, we
launched a multimillion dollar research initiative with Synthetic Genomics Inc. to explore the development and
commercialization of algae-based biofuels.
Through these efforts and many others, ExxonMobil is engineering integrated solutions to help meet the world’s
growing energy needs while managing emissions.
Of course, none of our Corporation’s technological advances – or our industry-leading operational excellence – would
be possible without the talented men and women of ExxonMobil. Our success and our innovations are driven by their
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Our National Content strategy enables us to make a positive change in the communities in which we operate, by
opening doors of opportunity in host nations to promote economic development by employing and training local
workforces and investing in infrastructure projects to support education and healthcare.
As the world recovers from the current economic downturn, ExxonMobil will continue to look beyond the current
business environment and focus on long-term business success and long-term growth in shareholder value. We will
continue to pursue opportunities to enhance our portfolio to ensure our businesses remain well-positioned to deliver
industry-leading performance at the top and bottom of the business cycle. We remain committed to meeting future
growing energy demand through long-term planning, disciplined investment, operational excellence, and strong
technological leadership.
On behalf of the men and women of ExxonMobil, I am grateful to our shareholders who have placed their trust and
confidence in us. We look forward to the successes to come.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
ExxonMobil Canada Ltd. ExxonMobil Abu Dhabi Offshore Petroleum Company Limited
106-1701 Hollis St United Arab Emirates
HALIFAX
NS
B3J 3M8
Canada
Tel: +1 902 4908900
Fax: +1 902 4960958
Esso Exploration and Production UK Limited Exxonmobil Research & Engineering Company
ExxonMobil House 1545 US Highway 22 East
Ermyn Way, Leatherhead Annandale
Surrey NJ
KT22 8UX 08801 3096
United Kingdom United States
Tel: +44 1372 222261 Tel: +1 908 730 0100
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
ExxonMobil, along with its subsidiaries and affiliates engages in the exploration, production and transportation of
crude oil and natural gas; and manufacture and sale of refined products. The company is also a manufacturer and
marketer of commodity petrochemicals, such as olefins, aromatics, polyethylene and polypropylene plastics and a
range of specialty products. In addition, it has interests in electric power generation facilities. ExxonMobil has
presence in six continents covering over 200 countries and operates through three reportable business segments:
Upstream, Downstream and Chemical.Recently, ExxonMobil concluded the acquisition of XTO Energy, Inc., an oil
and natural gas company, for a purchase consideration of USD 41,000 million.
As at December 31, 2009, the company chemical complex capacity stood at 8.9 millions metric tons (MT) of ethylene,
7.3 MT polyethylene, 2.2 MT polypropylene and 3.8 MT paraxylene.
In 2009, the company started up a fully integrated, world-scale facility in Fujian Province, China, which comprised 800
thousand tons per year ethylene steam cracker and associated polypropylene, polyethylene and paraxylene units.
Chemical - Production
During the fiscal year 2009, the total chemical prime product sales reached 24,825 thousand metric tons, as
compared to 24,982 thousand metric tons in 2008. Of which, 9,649 thousand metric tons were sold in the US and
15,176 thousand metric tons were sold in the remaining areas of the world.
Chemical - Financials
For the fiscal year 2009, the Chemical segment’s revenue accounted for USD 2,309 million, a decline of 22% over
2008.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
As part of its supply business, the company has interests in 11 crude oil and product tankers with individual capacity
of more than one thousand deadweight tons. It also has interests in 186 major petroleum products terminals globally.
Its fuels marketing business is responsible for marketing and selling of petroleum products and related services
through its network of 28,000 retail service stations, under brands, Mobil, Exxon, and Esso. The company's lubricants
and specialties business is involved in the marketing of finished lubricants, asphalt, and specialty products.
ExxonMobil completed the commissioning of new cogeneration facilities in China and Belgium, representing a total of
375 MWs in 2009. In July 2009, the company formed an alliance with Synthetic Genomics Inc., a biotech company, to
research and develop biofuels from photosynthetic algae.
Recently, Mid-Atlantic Convenience Stores, LLC, acquired a majority interest in Uppy's Convenience Stores, Inc. and
170 convenience stores/fuel stations from ExxonMobil. 7-Eleven Australia Pty Ltd., a subsidiary of 7-Eleven Stores
Pty Ltd., entered into an agreement to acquire 295 gasoline filling stations, from Mobil Oil Australia Pty Ltd., a
subsidiary of the company. Additionally, Global Partners LP, a supplier of refined petroleum products, signed an
agreement with the company to acquire 190 Mobil-branded gas stations for USD 200 million.
ExxonMobil entered into a multi-year agreement, under which, ExxonMobil2 will manufacture and supply Caterpillar
branded lubricants to Caterpillar factories and dealers worldwide.
Downstream - Production
During the fiscal year 2009, the total throughput at the company’s refineries stood at 5,350 thousands of barrels per
day (mbpd), as compared to 5,416 mbpd in 2008. Furthermore, the petroleum product sales decreased to 6,428
mbpd in 2008 from 6,761 mbpd in 2008. The decline was primarily due to lower worldwide demand for fuel products.
Of the total 6,428 mbpd, the sales volumes of gasoline and naphthas stood at 2,573 mbpd; heating oils, kerosene,
diesel stood at 2,013 mbpd; aviation fuels stood at 536 mbpd; heavy fuels stood at 598 mbpd; and specialty products
stood at 708 mbpd.
Downstream - Financials
For the fiscal year 2009, the Downstream segment recorded Earnings after income taxes of USD 1.78 million, a
decline of 78% over 2008.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
The decreased demand of petroleum products and low refinery margins forced many companies to cut throughput
rates in their refineries or temporarily shut down the refineries. Furthermore, the prices of crude oil and petroleum
products have dropped drastically from the peak of 2008 affecting the profitability of refineries. The meltdown in the
financial sector has made it difficult to raise finance for the capital intensive refinery projects. These have prompted
many companies to postpone or cancel their refinery investment plans.
As of December 31, 2009, the company’s proved oil and gas reserves totaled 14,955 million barrels of oil equivalent
(mmboe). Of the total proved reserves, the crude oil and natural gas liquid reserves totaled 6,469 million barrels and
natural gas reserves reached 34,442 billion cubic feet.
At the end of 2009, the company's undeveloped exploration acreage totaled gross 110.75 million (net 71.92 million).
In addition, ExxonMobil has interests in electric power generation facilities.
In 2009, ExxonMobil commenced eight major projects in the US, the UK, Norway, Italy, and Qatar. The Golden Pass
liquefied natural gas (LNG) terminal is scheduled to open on the U.S. Gulf Coast in 2010 and is expected to have the
capacity to import 2 billion cubic feet of gas per day from the new LNG projects in Qatar. Oil and Natural Gas
Corporation Limited, an energy company, plans to sell its interest in Krishna Godavari basin gas block DWN-98/2, to
the company.
Upstream - Production
During the fiscal year 2009, the combined oil and gas production volumes was 3,932 thousand barrels of oil
equivalent (mboe), as compared to 3,921 mboe in 2008. During 2009, the company’s total liquids production was
2,387 mbpd and natural gas production was 9,273 million cubic feet per day (mmcfd). As of December 31, 2009 the
company had a total of 16,556 net productive oil wells and 9,760 net productive gas wells. Furthermore, at the year-
end 2009, it had 13,737 net operated wells.
Upstream - Financials
For the fiscal year 2009, the Upstream segment’s earning after income taxes accounted for USD 17,107 million, a
decrease of 52% over 2008.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
The company anticipates that the global LNG demand will increase rapidly by 2030, driven by the demand in North
America, Europe and Asia Pacific markets. By 2030, LNG demand is expected to represent about 16% of the world’s
gas demand. The company holds LNG liquefaction capacity of about 65 million tons in 2010, and it expect this to
increase to more than 100 million tons annually in the coming years.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
ExxonMobil is engaged in the exploration and production of crude oil and natural gas, and marketing of petroleum
products. It has integrated refining and chemical operations and cogeneration facilities. The company operates in
diverse geographic locations across the world. The company can expect to benefit from the increasing demand for
hydrocarbons in the long run. However, declining market share, proved oil reserves and the increasing production
costs are likely to affect its profitability. Furthermore, natural disasters such as hurricanes in the Gulf of Mexico and
the coastal US and stringent regulations may hamper its growth.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
The decrease in the demand for petroleum products and low refinery margins forced many companies to cut
throughput rates in their refineries or temporarily shut down the refineries. Furthermore, the prices of crude oil and
petroleum products have dropped drastically from the peak of 2008, affecting the profitability of refineries. The
meltdown in the financial sector has also made it difficult to raise finance for capital intensive refinery projects. While
the situation has stabilized in 2010, these have prompted many companies to postpone or cancel their refinery
investment plans.
Threat - US Energy Policy
The government’s proposed increase in taxes, and new oil and gas leasing policy may affect the earnings and growth
of oil and gas companies such as this. The US energy policy highlights a considerable shift from the fossil fuel driven
economy to an economy fuelled by renewable energy.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Moreover, in January 2010, the US’ interior secretary Ken Salazar announced amendments to the existing oil and gas
leasing policy. The leasing policy might make domestic oil and gas explorations difficult. As per the new regulations,
the leasing process will undergo internal and external scrutiny, verification of conformance to a Resource
Management Plan; have greater public participation and industry participation and comprise larger environmental
review procedures.
Threat - Threat to Oil Sand Industry
Low oil prices and environmental implications prove a dampener for companies active in oil sand exploration such as
this. There has been much impact on the environment due to the exploration of oil sands. Exploration activities have
influenced wildlife and water bodies. Oil sand operations generate toxic waste during the extraction process that
comprise water, sand, clay, small amounts of bitumen, and naturally occurring organic compounds, salt and traces of
metals. Furthermore, the amount of natural gas used by the Canadian oil sands industry is equivalent to the daily
consumption of 3.2 million Canadian homes, which contributes to increased carbon emission.
Additionally, the oil sands industry is more capital intensive than traditional oil exploration projects. The Canadian oil
sands industry needs an oil price in the range of USD 50–65, depending on the location, in order to be profitable.
However, the huge fall in the oil prices since the financial crisis has made many oil sands projects uneconomical. In
addition, the global economic slowdown and an uncertain future demand and price outlook have decreased the
attractiveness of the oil sands industry.
Threat - Rising Capital Costs in the Refining Sector
There was a significant pressure on refining margins due to the recessionary conditions. ExxonMobil operates 37
refineries in 21 countries. Refineries worldwide are becoming more complex and flexible in allowing refiners to
process different qualities of crude. Even in developing countries, petroleum product quality norms are getting more
stringent, which is resulting in an increase in costs for building secondary conversion units such as fluid catalytic
crackers, hydro crackers and cokers. Additionally, shifting yield patterns in favor of light and middle distillates instead
of fuel oil also require huge investments to upgrade simple refineries into complex ones for some companies.
NOTE:
* Sector average represents top companies within the specified sector
The above strategic analysis is based on in-house research and reflects the publishers opinion only
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Book Value per Share USD 18.21 19.87 22.62 22.70 23.39
Cash Value per Share USD 4.70 4.93 6.31 6.32 2.26
Profitability Ratios
Gross Margin % 31.34 32.57 31.45 28.85 28.89
PBT Margin (Profit Before Tax) % 16.03 17.85 17.67 17.47 11.20
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Financial Performance
The company reported revenues of (U.S. Dollars) USD 310,586.00 million during the fiscal year ended December 2009, a
decrease of 34.94% from 2008. The operating profit of the company was USD 34,777.00 million during the fiscal year 2009, a
decrease of 58.30% from 2008. The net profit of the company was USD 19,280.00 million during the fiscal year 2009, a decrease
of 57.36% from 2008.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Book Value per Share USD 22.18 22.60 23.39 23.95 27.53
PBT Margin (Profit Before Tax) % 10.10 11.19 11.36 13.37 13.74
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Oct 05, 2010: BAM Clough Receives Additional LoI For PNG LNG Jetty Topsides
Clough Limited (Clough) said that the BAM Clough joint venture has received an additional letter of intent (LoI) from
Chiyoda JGC joint venture for the fabrication and construction of the topsides for the PNG LNG condensate offloading
jetty. The second contract is valued at around $53 million, bringing the total value of contracts awarded to BAM
Clough for the PNG LNG jetty project to $308 million.
The topsides will be fabricated and assembled at Clough's Sattahip fabrication yard in Thailand, and will be
transported and installed at the jetty site, 20km northwest of Port Moresby.
John Smith, CEO of Clough, said: "Clough and our long-term partner BAM International are delighted to be given the
opportunity to deliver the topsides for this EPC project, which will provide continuity of quality work for our yard in
Thailand."
BAM Clough JV is a 50/50 joint venture between BAM International bv and Clough Operations Pty Ltd., a wholly-
owned subsidiary of Clough.
The PNG LNG project is an integrated development that includes gas production and processing facilities, onshore
and offshore pipelines and liquefaction facility with the capacity of 6.6 mtpa.
Participating interests include affiliates of ExxonMobil (33.2%), Oil Search Limited (29%), Independent Public
Business Corporation (PNG Government-16.6%), Santos Limited (13.5%), Nippon Oil Exploration (4.7%), Mineral
Resources Development Company (PNG landowners-2.8%) and Petromin PNG Holding Limited (0.2%).
Oct 01, 2010: Bapco Receives Bids For LNG Terminal In Bahrain
Bahrain Petroleum Company (Bapco) has received prequalification bids from local and international firms to build an
LNG import terminal that is estimated to cost over $1 billion, reported Steel Guru, citing MEED. The company is
expected to unveil the tenders by the fourth of 2010 and successful bidder by the first of 2011.
The project includes setting up a ship unloading system, LNG storage tanks, regasification and send out system,
marine works, a jetty and other associated works.
Companies bidding for prequalification for the project include: Punj Lloyd, Italian-Thai Development, Excelerate
Energy, Golar LNG Energy, Vitol Bahrain, Shell, IM Skaugen, China Harbour Engineering Company, Al-Hassanain
Company, GDF Suez Development, BG American & Global, Hess LNG, Samsung Construction & Trading, Tecnicas
Reunidas, Exxon Mobil Corporation, Mitsubishi Corporation, Korea Gas Corporation, BP Gas Marketing, Mitsui &
Co./JGC Corporation, Chevron Corporation and IHI Corporation.
Sep 29, 2010: ExxonMobil Announces Odoptu Production Startup At Sakhalin-1 Project In Russia
Exxon Mobil Corporation (ExxonMobil) has announced the startup of production from the Odoptu field at the
Sakhalin-1 project offshore northeastern Russia. ExxonMobil subsidiary Exxon Neftegas Limited (ENL) is operator on
behalf of the five-company international Sakhalin-1 consortium.
The Odoptu field is expected to add up to 11 million barrels (1.5 million tons) to Sakhalin-1 oil production in 2011. The
startup is on schedule and within development cost expectations.
Neil W. Duffin, president of ExxonMobil Development Company, said: "This is yet another milestone in Sakhalin-1
project achievements. The Sakhalin-1 project is one of the largest energy investments in Russia and is a testament to
international cooperation.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Development of the Odoptu field has included world-class performance in the drilling and completion of seven
extended-reach wells. The Sakhalin-1 project employs one of the world's most powerful land-based rigs, which drilled
horizontally under the Sea of Okhotsk to the Odoptu oil reservoir over five miles (9km) offshore, said ExxonMobil.
Additional activities in the development of Odoptu included the construction of a new onshore oil and gas treatment
facility and flowline connection to the existing Chayvo onshore processing facility.
The Sakhalin-1 project includes the phased development of the Chayvo, Odoptu and Arkutun-Dagi fields, with an
estimated total resource of 2.3 billion barrels (307 million tons) of oil and 17 trillion cubic feet (485 billion cubic
meters) of natural gas. The Chayvo field, which was the initial phase of the Sakhalin-1 project, began production in
2005.
Future project phases call for the development of the Arkutun-Dagi field as well as expanded gas production and
sales from the Chayvo field. These later project developments will sustain production well into the future.
Since startup, the Sakhalin-1 project has produced over 270 million barrels (35.4 million tons) of oil for export to world
markets. It also has been a key supplier of over 210 billion cubic feet (six billion cubic meters) of associated natural
gas to customers in Khabarovsk Krai, in far eastern Russia, to heat homes and meet growing energy needs. The
project will continue to help meet future natural gas demand in this region.
The Sakhalin-1 consortium includes ENL (30% interest)Sakhalin Oil and Gas Development Co. Ltd. (SODECO,
30%)affiliates of Rosneft, RN-Astra (8.5%), Sakhalinmorneftegas-Shelf (11.5%) and ONGC Videsh Ltd. (20%).
Sep 23, 2010: Leighton To Deliver Civil And Underground Works For Gorgon Project
Leighton Contractors Pty Limited (Leighton) has been awarded a contract by Chevron Australia to deliver the civil and
underground works package for the Gorgon project, valued at more than $800 million. The contract win is in addition
to the company's current work in hand at the Gorgon project where the company is completing works on the 2.1km
LNG jetty and marine structures in consortium with Saipem.
Craig Laslett, managing director for Leighton, said: "We have a genuine commitment to deliver the project with the
highest standard of safety and to provide the expertise and services required to develop Australia's energy needs in
line with sustainable economic development."
Ray Sputore, general manager of Leighton western region, said: "Leighton has strong experience working with oil and
gas clients, and a skilled team to ensure our contribution is world-class. Being the largest single resources project in
Australia, we will be drawing on our pool of skilled workers as well as new talent to meet the peak target of 1,500
employees across both Leighton contracts.
"It is an exciting time for Leighton and we are proud to be involved in such an iconic West Australian project."
The contract scope includes earthworks, in-situ and precast concrete and underground services--including drainage,
piping and electrical and instrumentation cabling which will be installed within the LNG plant site.
The team will commence work immediately are expected to be complete by mid 2013.
The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian
subsidiaries of Chevron (around 47%), ExxonMobil (25%) and Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and
Chubu Electric Power (0.417%).
Sep 21, 2010: ExxonMobil Awards MZST License To Calfrac Well Services
ExxonMobil Corporation (ExxonMobil) has announced the licensing of its Multi-Zone Stimulation Technology (MZST)
well treatment process to Calfrac Well Services Ltd. (Calfrac Well Services). The MZST process can be used to
rapidly and reliably stimulate multiple reservoir zones in a single operation, yielding improved well economics.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
The MZST process can be particularly beneficial for fracturing operations in tight gas, shale gas, and coal bed
methane wells that target multiple reservoir zones, thick reservoir sections, or long reservoir intervals where multiple
stimulation treatments are required, said ExxonMobil.
The MZST process will enable Calfrac Well Services to optimize its stimulation operations by combining the
deployment of perforating and fracturing equipment simultaneously in the wellbore to enable single-trip, multi-zone
stimulations. The technology dramatically increases the number of zones that can be fractured per day compared to
conventional fracturing and stimulation operations.
Sara Ortwein, president of ExxonMobil Upstream Research Company, said: "For a variety of unconventional plays
ExxonMobil’s MZST process continues to be a premier technology for rapidly moving from drilled well to completed
production well. The track record of the MZST process for cost effective and efficient operations is a testament to the
value of the technology and the reason service companies choose to license the technology from ExxonMobil."
Doug Ramsay, president and CEO of Calfrac Well Services, said: "We are pleased to add this proven stimulation
technology to our portfolio and plan to promote the effectiveness and efficiency of using the ExxonMobil MZST
process with our many customers throughout Canada and the US."
Sep 20, 2010: ExxonMobil Announces Equipment For Industry Use Through MWCC
Exxon Mobil Corporation (ExxonMobil), on behalf of the Marine Well Containment Company (MWCC), has
announced an agreement with BP to provide its underwater well containment equipment to MWCC as part of BP's
intent to join the new organization. Chevron, ConocoPhillips, ExxonMobil and Shell are establishing the MWCC to
provide emergency response services in the US Gulf of Mexico.
As part of the agreement, the BP equipment will be made available to all oil and gas companies operating in the US
Gulf of Mexico.
The equipment could be deployed to capture and contain oil from a potential underwater well blowout while the new
rapid-response system announced in July is being developed.
Lloyd Guillory, marine well containment system project executive, said: "We are working quickly and effectively in an
unprecedented effort to improve incident preparedness. Our progress since we announced the system demonstrates
the commitment of our companies to make equipment immediately available for incident response."
The existing BP equipment is being assessed for use in near-term response capability. The sponsor companies'
project team will utilize full time BP technical personnel with experience from the Gulf of Mexico response.
Guillory said: "This and other equipment that the project expects to acquire will enable us to preserve and secure
existing capability for use by the oil and gas industry in the US Gulf of Mexico while we build the new system that
exceeds current response capabilities."
Richard Morrison, BP vice president for Gulf of Mexico operations, said: "We are pleased to provide the experience
and specialized equipment needed to respond to a deepwater well control incident and intend to join the MWCC. We
believe the addition of our recently gained deepwater intervention experience and specialized equipment will be
important to the marine well containment system."
Sep 16, 2010: ExxonMobils's Deepwater Exploration Well Commercially Not Viable
ExxonMobil Corporation (ExxonMobil) has drilled a deepwater exploration well, offshore Libya, which was
commercially not viable, Reuters reported. The well was first announced in 2009 with the collaboration between
ExxonMobil and National Oil Corporation of Libya.
Sep 14, 2010: MMA Secures Gorgon Fuel Transportation Contract
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
The contract will generate revenue in excess of AUD80 million over the initial three-year term and includes an option
to extend for a further 12 months.
In July 2010, MMA was awarded a further two contracts related to the Gorgon project to transport cargo and water
respectively from mainland Australia to Barrow Island. The contract for the transportation of cargo from MMA's
Dampier supply base to Barrow Island involves the provision of one towing tug and two barges for an initial term of 15
months, commencing mid 2010. The contract for the transportation of water to Barrow Island is for a term of nine
months later in 2010 and involves the provision of one towing tug and two barges.
Jeff Weber, managing director of MMA, said: "All three operations represent an exciting development for MMA and
we are proud to be able to support Chevron and the Gorgon project as it continues to progress.
"MMA has extensive experience in conducting tug and barge operations in the region and with the company also
providing stevedoring and related services to the Gorgon project on our Dampier supply base, we are able to
integrate the marine supply chain and ensure security of supply to Barrow Island."
The Gorgon project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian
subsidiaries of Chevron (approximately 47%), ExxonMobil (25%) and Shell (25%), Osaka Gas (1.25%), Tokyo Gas
(1%) and Chubu Electric Power (0.417%).
Sep 02, 2010: CCJV Wins AUD250 Million Work Order For LNG Upstream Infrastructure In Papua New Guinea
Clough Limited (Clough) said that the Clough Curtain joint venture (CCJV) has received firm work orders worth
AUD250 million associated with the upstream infrastructure contract awarded on May 1, 2009. The total value of work
awarded to CCJV on the upstream infrastructure project now stands at AUD560 million.
The PNG LNG project is an integrated development that includes gas production and processing facilities, onshore
and offshore pipelines and liquefaction facilities. Participating interests are affiliates of Exxon Mobil Corporation
(including Esso Highlands Limited as operator, 33.2%), Oil Search Limited (29%), Independent Public Business
Corporation (PNG Ggovernment, 16.6%), Santos Limited (13.5%), Nippon Oil Exploration (4.7%), Mineral Resources
Development Company (PNG landowners, 2.8%) and Petromin PNG Holdings Limited (0.2%).
Sep 01, 2010: WorleyParsons Receives Contract From ExxonMobil For Hebron Project In Canada
WorleyParsons Limited (WorleyParsons) has been awarded a contract by ExxonMobil Canada Properties
(ExxonMobil) for the topsides on the Hebron project. The contract is for front end engineering and design (FEED),
with the option at ExxonMobil’s discretion to subsequently provide detailed engineering, procurement and
construction (EPC) services.
The Hebron field is an oil and gas development in the Atlantic Ocean located 350km offshore from St. John’s in
Newfoundland and Labrador, Canada.ExxonMobil has approved $61 million for FEED to be completed through 2011.
WorleyParsons estimates the services revenue under the full FEED/EPC contract to be $285 million over five years.
WorleyParsons will provide overall project management of the contract with subcontracts to be awarded to multiple
third parties, with a special emphasis on performing work in Newfoundland and Labrador in accordance with Hebron
Project benefits commitments. WorleyParsons will work with ExxonMobil to deliver on this and other benefits
commitments, including those related to procurement, supplier development, education and training, research and
development, and gender equity and diversity.
John Grill, CEO of WorleyParsons, said: “WorleyParsons is excited to be selected by ExxonMobil Canada Properties
for the complex Hebron Project which will utilize our proven expertise in sub-Arctic floatover topsides.”
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
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Currency Codes
Currency Code Currency
USD U.S. Dollars
GlobalData
Ratio Definitions
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings Ratio Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income
(P/E) earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors
are paying more for each unit of income, so the stock is more expensive compared to one with
lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P/E. Price per share is as of previous business close,
and EPS is from latest annual report.
Calculation: Price per Share / Earnings per Share
Enterprise Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or
Value/Earnings as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is
before Interest, Tax, unaffected by a company's capital structure. It compares the value of a business, free of debt, to
Depreciation & earnings before interest. Price per share is as of previous business close, and shares outstanding
Amortization last reported. Other items are from latest annual report.
(EV/EBITDA)
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +
Interest + Tax + Depreciation + Amortization)
Enterprise Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the
Value/Sales company's sales. EV/Sales is seen as more accurate than Price/Sales because market
capitalization does not take into account the amount of debt a company has, which needs to be
paid back at some point. Price per share is as of previous business close, and shares outstanding
last reported. Other items are from latest annual report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit.
Value/Operating Price per share is as of previous business close, and shares outstanding last reported. Other items
Profit are from latest annual report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Equity Ratios
Profitability Ratios
Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources
used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period
is indicative that the company is doing well.
Gross Margin Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed
and direct-variable unit costs.
Calculation: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency.
Calculation: (Operating Income / Revenues) *100
Net Profit Margin Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that
shows how much of each dollar earned by the company is translated into profits.
Calculation: (Net Profit / Revenues) *100
Profit Markup Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Calculation: Gross Income / Cost of Revenue
PBIT Margin (Profit Profit Before Interest & Tax Margin shows the profitability of the company before interest expense
Before Interest & Tax) & taxation.
Calculation: {(Net Profit+Interest+Tax) / Revenue} *100
PBT Margin (Profit Profit Before Tax Margin measures the pre-tax income over revenues.
Before Tax)
Calculation: {Income Before Tax / Revenues} *100
Return on Equity Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of
the common stock owners.
Calculation: (Net Income / Shareholders Equity)*100
Return on Capital Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Operating costs as percentage of total revenues measures the operating costs that a company
Sales) incurs compared to the revenues.
Calculation: (Operating Expenses / Revenues) *100
Administration costs Administration costs as percentage of total revenue measures the selling, general and
(% of Sales) administrative expenses that a company incurs compared to the revenues.
Calculation: (Administrative Expenses / Revenues) *100
Interest costs (% of Interest costs as percentage of total revenues measures the interest expense that a company
Sales) incurs compared to the revenues.
Calculation: (Interest Expenses / Revenues) *100
GlobalData
Liquidity Ratios
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher
the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's
ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment.
Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be
able to continue as a going concern.
Current Ratio Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an
idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-
term assets (cash, inventory, receivables). The higher the current ratio, the more capable the
company is of paying its obligations. A ratio under 1 suggests that the company would be unable to
pay off its obligations if they came due at that point.
Calculation: Current Assets / Current Liabilities
Quick Ratio Quick ratio measures a company's ability to meet its short-term obligations with its most liquid
assets.
Calculation: (Current Assets - Inventories) / Current Liabilities
Cash Ratio Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks
at the most liquid short-term assets of the company, which are those that can be most easily used
to pay off current obligations. It also ignores inventory and receivables, as there are no assurances
that these two accounts can be converted to cash in a timely matter to meet current liabilities.
Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
GlobalData
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of
financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked
at include debt, equity, assets and interest expenses.
Debt to Equity Ratio Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also
depends on the industry in which the company operates. For example, capital-intensive industries
tend to have a higher debt-equity ratio.
Calculation: Total Liabilities / Shareholders Equity
Debt to Capital Ratio Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its
operations, along with some insight into its financial strength. The higher the debt-to-capital ratio,
the more debt the company has compared to its equity. This indicates to investors whether a
company is more prone to using debt financing or equity financing. A company with high debt-to-
capital ratios, compared to a general or industry average, may show weak financial strength
because the cost of these debts may weigh on the company and increase its default risk.
Calculation: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Interest Coverage Ratio is used to determine how easily a company can pay interest on
Ratio outstanding debt, calculated as earnings before interest & tax by interest expense.
Calculation: EBIT / Interest Expense
GlobalData
Efficiency Ratios
Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its
use of resources.
Fixed Asset Turnover Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate
sales. A higher ratio indicates the business has less money tied up in fixed assets for each
currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in
plant, equipment, or other fixed assets.
Calculation: Net Sales / Fixed Assets
Asset Turnover Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales
revenue to the company. A higher asset turnover ratio shows that the company has been more
effective in using its assets to generate revenues.
Calculation: Net Sales / Total Assets
Current Asset Current Asset Turnover indicates how efficiently the business uses its current assets to generate
Turnover sales.
Calculation: Net Sales / Current Assets
Inventory Turnover Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a
period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies
either strong sales or ineffective buying.
Calculation: Cost of Goods Sold / Inventory
Working Capital Working Capital Turnover is a measurement to compare the depletion of working capital to the
Turnover generation of sales. This provides some useful information as to how effectively a company is
using its working capital to generate sales.
Calculation: Net Sales / Working Capital
Capital Employed Capital employed turnover ratio measures the efficiency of a company's use of its equity in
Turnover generating sales revenue to the company.
Calculation: Net Sales / Shareholders Equity
Capex to sales Capex to Sales ratio measures the company's expenditure (investments) on fixed and related
assets' effectiveness when compared to the sales generated.
Calculation: (Capital Expenditure / Sales) *100
Net income per Net income per Employee looks at a company's net income in relation to the number of employees
Employee they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher
productivity.
Calculation: Net Income / No. of Employees
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA
The data and analysis within this report is driven by GlobalData from its own primary and secondary research of
public and proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note
that the findings, conclusions and recommendations that GlobalData delivers will be based on information gathered in
good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee.
As such GlobalData can accept no liability whatever for actions taken based on any information that may
subsequently prove to be incorrect.
Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA