ExxonMobil reported last Thursday that first quarter 2013 net income was $9.5 billion, up 1%, on revenue of $108.8 billion compared to $9.45 billion, on revenue of $124.1 billion during last year's first quarter. ExxonMobil produced 3.5 percent less oil and gas in the quarter. Chemical and U.S. refining profits rose and the company's corporate and financing expenses fell sharply, which Exxon attributes to "favorable tax impacts." Profit at ExxonMobil's global chemicals operation grew 62 percent in the quarter, to $639 million. U.S. refining profit grew 72 percent to $1 billion.
Sequentially, ExxonMobils first quarter 2013 earnings decreased by $450 million compared with the fourth quarter of 2012. Lower Upstream and Downstream earnings were partly offset by higher Chemical earnings and lower corporate and financing expenses.
Downstream earnings for the quarter were $1.5 billion, down $41 million from the first quarter of 2012. Improved margins mainly in refining increased earnings by $780 million. Volume and mix effects decreased earnings by $290 million mainly due to increased refinery maintenance activity. All other items decreased earnings by $530 million including lower gains on asset sales outside of the United States, the increased operating expenses associated with refinery maintenance activity and unfavorable foreign exchange effects. Chemical earnings were $1.1 billion, up $436 million versus the first quarter of 2012. Stronger commodity margins increased earnings by $320 million, reflecting improved U.S. steam cracking margins on lower ethylene feed cost. All other items increased earnings by $120 million mainly due to increased gains on asset sales.
Chevron Corporation last Friday reported earnings of $6.2 billion for the first quarter 2013, compared with $6.5 billion in the 2012 first quarter. Sales and other operating revenues in the first quarter 2013 were $54 billion, down from $59 billion in the year-ago period, as with most oil producing companies, mainly due to lower prices for crude oil.
U.S. downstream operations earned $135 million in the first quarter 2013, compared with $459 million a year earlier. The decrease was due to higher operating expenses primarily as a result of turnaround activity at the refineries in El Segundo, California, and Pascagoula, Mississippi, as well as lower margins on refined product sales. The decrease was partly offset by higher earnings from the 50 percent-owned Chevron Phillips Chemical Company LLC.
International downstream operations earned $566 million in the first quarter 2013, compared with $345 million a year earlier. Earnings increased primarily due to higher margins on refined product sales. These benefits were partly offset by the absence of a 2012 gain on the sale of the companys fuels and finished lubricants businesses in Spain. Foreign currency effects increased earnings by $76 million, compared to a decrease of $11 million last year.
U.S. upstream earnings of $1.13 billion in the first quarter 2013 were down $397 million from a year earlier. The decrease was primarily due to lower crude oil realizations and higher operating expenses. International upstream earnings of $4.8 billion increased $142 million from the first quarter 2012. Lower crude oil production and realizations were partially offset by favorable tax items and lower exploration expenses. Foreign currency effects increased earnings by $172 million, compared with a decrease of $208 million a year earlier.
France's TOTAL S.A. last Friday reported first-quarter 2013 operating earnings of $3.8 (2.9) billion, as earnings declined approximately 7% from earnings reported in the year-ago period. Net earnings was 1.5 billion. The decline in earnings was primarily due to lower contribution from the upstream segment. Higher technical costs, and lower production and sales due to a less favorable business environment weighed on the performance of this segment. Total revenue at the end of first-quarter 2013 was $63.56 billion (48.13 billion) against $67.07 billion (51.17 billion) in the first quarter of 2012. The year-over-year decline in revenue was 5%.
Also reporting last week, Canada's Imperial Oil said that earnings in the first quarter of 2013 were $798 million, down 21 percent or $217 million from $1,015 million in the first quarter of 2012. The company said that lower earnings were primarily attributable to the impacts of lower liquids realizations of $270 million, higher refinery and Syncrude maintenance effects of $165 million and higher Kearl sands project production readiness expenditures. These factors were partially offset by lower royalties of $160 million and higher refining margins of $125 million.
