ExxonMobil: Balanced Portfolio Drives Outperformance, But Challenges Persist

BMI View: 2013 was a disappointing year for ExxonMobil with the company seeing profits and production fall compared to 2012. We believe 2014 will be a more successful year with a number of major projects scheduled to come on-stream over the course of the year, enabling the company to increase production compared to 2013. However, we note increasing project costs and softening oil prices as a deterrent to the long term growth strategy of the company. Furthermore, despite a very strong asset base, opportunities for organic expansion are limited, while global competition for new resources is increasing. ExxonMobil's balanced portfolio incorporating LNG, natural gas and liquids as well as its position in East Africa and Russia will be key to future growth. Of particular importance is the potential in Tanzania, the Kara Sea and the Bazhenov shale, all of which will be more extensively explored in 2014.

ExxonMobil 2013 Results Overview

ExxonMobil's (XOM) fourth quarter and full year results for 2013 disappointed with full year revenues down 27% from 2012. Earnings were impacted by lower production volumes and lower net gains from divestments.

Falling Revenues
ExxonMobil Revenues 2009-2013, US$mn

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Related sectors of this article: Oil & Gas
Geography: Global, Iraq, Russia