ExxonMobil Q4 chem profit down 86% on lower volumes, hurricanes

30 January 2009 14:21  [Source: ICIS news]

TORONTO (ICIS news)--US energy major ExxonMobil reported on Friday an 86% profit decline in its chemicals business, mainly due to lower volumes, repair costs from the Gulf Coast hurricanes, and foreign exchange effects.

Net income in the chemicals segment for the three months ended 31 December was $155m (€119m), down $957m from $1.112bn in the year-earlier period.

The company did not disclose the quarter’s chemical sales in dollar terms but said that “prime product sales” were 5.626m tonnes, down 20%, or 1.423m tonnes, from 7.049m tonnes in the 2007 fourth quarter.

Full-year chemical net income was $2.957bn, down 35%, or $1.606bn, from $4.563bn in 2007.

Lower margins decreased full-year net income by about $1.2bn while lower volumes reduced it by about $500m, ExxonMobil said.

Full-year prime chemical product sales were 24.982m tonnes, down 9% from 27.480m in the 2007.

Overall, the Texas-based global energy major reported a 33% decline in fourth-quarter net income, to $7.820bn from $11.660bn in the year-earlier period.

It cited weaker crude oil prices, higher operating expenses, lower chemical volumes and the impact of the Gulf Coast hurricanes for the decline which was only partially offset by higher downstream margins.

($1 = €0.77)

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By: Stefan Baumgarten
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