ExxonMobil Reviews Record-Breaking 2004 Performance, Sees Market Changes Playing to Strengths
Posted: 16 March 2005
Exxon Mobil Corporation Chairman and CEO Lee Raymond told analysts today at the New York Stock Exchange that the energy market is changing and that the changes are playing to ExxonMobil's strengths.
Raymond noted that ExxonMobil has a track record of anticipating change. "We work hard to ensure that our differentiating capability is ready as opportunities mature," said Raymond. "Technology increasingly differentiates ExxonMobil, as do our competitively advantaged integrated operating facilities. So while we acknowledge that the playing field is changing, these changes actually play to ExxonMobil's strengths."
Long-Term Perspective
Raymond cited ExxonMobil's disciplined, long-term focus as critical to its continuing operational and financial performance. "Our industry is driven by long-term trends," said Raymond. "Seeing past the market noise and understanding long-term market trends is one of the hallmarks of ExxonMobil's approach. Our portfolio of assets captures the full value of market cycles across different businesses, economies and regions."
This commitment to a long-term approach differentiates ExxonMobil from its competitors. "Some companies talk about their business in much shorter time frames than we do," said Raymond.
In 2004 ExxonMobil delivered record results across the board. Net corporate income was a record $25.3 billion, with all business segments reporting record earnings. Return on capital employed was 24 percent, cash flow from operations and asset sales was more than $43 billion, and the company improved upon its industry-leading safety performance.
Outstanding Competitive Position
Raymond noted that ExxonMobil is uniquely positioned to meet the challenge of adding new resources and continuing to deliver returns to shareholders. "We have an industry-leading resource base of 73 billion oil-equivalent barrels and the financial strength to pursue all opportunities that satisfy our rigorous criteria," he said. "Our global functional organization allows us to better leverage our scale, and we enjoy enormous competitive advantage by maintaining the strongest suite of proprietary technologies in the industry."
Demonstrated by Results
Raymond also linked ExxonMobil's industry-leading performance to its consistent return to investors. "Our shareholders benefit from our consistent financial and operating performance by the unique combination of high returns with low relative risk," said Raymond. "Over a 20-year period, ExxonMobil stock has earned an average 16 percent return per year. We accomplished this with far lower risk than our competition and at the same level as the entire S&P 500 index."
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