Earnings Call Excerpt
ExxonMobil (XOM)
Q4 2005 Earnings Conference Call
January 30th 2006, 11:00 AM.
Executives:
Henry H. Hubble, Vice President of Investor Relations and Secretary
Analysts:
Nikki Decker, Bear Stearns
Paul Cheng, Lehman Brothers
Mark Flannery, Credit Suisse
Doug Terreson, Morgan Stanley
Paul Sankey, Deutsche Bank
Doug Leggate, Citigroup
Neil McMahon, Bernstein
Daniel Barcelo, Banc of America
Jennifer Rowland, JP Morgan
Mark Gilman, Benchmark Company
Fadel Gheit, Oppenheimer & Company
Bruce Lanni, AG Edwards.
John Herrlin, Merrill Lynch
Presentation
Operator
Welcome to this ExxonMobil Corporation Fourth Quarter 2005 Earnings Conference Call. Today’s call is being recorded. At this time for opening remarks and introductions I would like to turn the call over to the Vice President of Investor Relations and Secretary, Mr. Henry Hubble. Please go ahead, sir.
Henry H. Hubble, Vice President of Investor Relations and Secretary
Thank you. I’d like to welcome you to ExxonMobil's teleconference and webcast on our fourth quarter and full year 2005 financial and operating results. As you are aware from this morning’s press release, we had a very strong quarter. Our portfolio of businesses has performed well and we captured the benefits of the strong industry conditions. Many in the investment community were not expecting earnings of this magnitude. And this morning I will highlight the factors that have contributed to our performance, including those in our international business where results appear to have been most underestimated.
Before we go further I would like to draw your attention to our cautionary statement. Please note that estimates, plans and projections are forward-looking statements. Actual results, including resource recoveries, volume growth, and project outcomes could differ materially due to factors I discuss and factors noted in our SEC filings. Please see Factors Affecting Future Results and the Form 8-K we furnished this morning, which are available through the investor information section of our website. Please also see the frequently used terms, the supplement to this morning’s 8-K, and the 2004 financial and operating review on our website. This material defines certain financial and operating terms I will use today, shows ExxonMobil's net interest in specific projects, and includes information required by SEC Regulation G.
Now I am pleased to turn your attention to the specific results. ExxonMobil's fourth quarter net income was $10.7 billion or $1.71 per share. These results include a $390 million from resolution of the SABIC licensing dispute. Excluding this gain, normalized earnings were $10.3 billion or $1.65 per share. This was an increase of $1.9 billion versus the fourth quarter of last year. As you know, it’s been a quarter marked by strong commodity prices. But our performance is really distinguished by the underlying fundamentals of our businesses, underpinned by the hard work of our people. Operations are run safely and reliably. Investment decisions are based on long-term fundamentals. A key component of the corporation’s competitive position is its ability to successfully manage projects and costs, and improved efficiency in all aspects of its business. For example, while our earnings are driven in part by world commodity prices, our upstream earnings were at record levels in the fourth quarter because we also consistently delivered projects on time while successfully controlling cost.
Thank you, Mr. Hubble. The question and answer session will be conducted electronically toady. If you would like to ask a question please register by pressing the ?*
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