01 May 2008 14:20 [Source: ICIS news]
LONDON (ICIS news)--ExxonMobil’s first-quarter chemicals earnings fell 16.8% year-on-year to $1.03bn, the US oil giant said on Thursday.
Lower margins depressed earnings by about $350m, ExxonMobil said, which was offset by favourable currency exchange and tax effects.
Product sales were down 227,000 tonnes at 6.58m tonnes, with sales down 176,000 tonnes in the ?xml:namespace>
ExxonMobil’s US chemicals earnings were hardest hit during the period, falling 17.9% year on year to $284m. Chemicals earnings for the rest of the world were down 16.4% at $744m, it said.
Overall the oil group’s first-quarter net income was up 17%, hitting a record $10.89bn driven by record high crude oil prices.
Refining margins were down, however, alongside chemicals. ExxonMobil said production volumes in the quarter had been lower but operating costs higher.
Group-wide capital spending was up significantly, 30% higher than in the equivalent period of last year, at $5.5bn, as investments in oil, gas and downstream projects were ramped up.
The quarterly spend on chemicals more than doubled to $566m, from $219m, with non-US spending up from $467m, from $135m.
The company’s second steam cracker being built in
ExxonMobil said in March that it planned to increase its steam-cracking capacity in Asia and the
ExxonMobil is the world's largest publicly traded oil company.
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