2004 Summary Annual Report - ExxonMobil

Technology differentiates ExxonMobil Chemical.
Concentration on our core competencies, as well as selective
investment, produces growth and results that set us apart.
Chemical
2004 RESULTS AND HIGHLIGHTS
2004 earnings of $3.4 billion set a record – more than
double those in 2003. Our unique mix of businesses,
broad geographic coverage, and feedstock and integration
advantages ideally positioned ExxonMobil to capitalize on
an improved industry environment.
Chemical return on average capital employed reached
23 percent, up from 10 percent in 2003. ExxonMobil’s
Chemical returns exceeded the average returns of our major
chemical competitors. Over the last 10 years, our Chemical
segment achieved an average return of 14 percent. During
the same period, we estimate our competitors’ average
return to have been 8 percent.
2004 prime product sales volume of 27.8 million tons
was a record – 5 percent higher than in 2003. Growth in all
regions was achieved by higher utilization of existing assets,
supported by strong reliability and global supply optimization.
Capital expenditures were $0.7 billion. The Company
continued to invest selectively in high-return efficiency
projects, low-cost debottlenecks, and projects to support
the growth of our specialty businesses.
Capacity is more than 40 percent higher than the
last chemical cycle peak in 1995. Recent advantagedcapacity
additions in Saudi Arabia and Singapore are
contributing significantly to earnings growth. We are
particularly well-positioned to continue to meet growing
demand in Asia, which has been led by an expanding
Chinese economy.
C HEMICAL OUTPERFORMED COMPETITION
A CROSS THE BUSINESS CYCLE
Return on Average Capital Employed
ExxonMobil
(percent)
Major Chemical Competitors (1)
STATISTICAL RECAP 2004 2003 2002 2001 2000
Earnings (1) (millions of dollars) 3,428 1,432 830 882 1,161
Prime product sales (2) (thousands of metric tons) 27,788 26,567 26,606 25,780 25,637
Average capital employed (millions of dollars) 14,608 14,099 13,645 13,839 13,814
Return on average capital employed (percent) 23.5 10.2 6.1 6.4 8.4
Capital expenditures (millions of dollars) 690 692 954 872 1,468
(1) Earnings included a $175 million extraordinary gain on asset divestitures in 2001.
(2) Prime product sales include ExxonMobil’s share of equity-company volumes and finished-product transfers to the Downstream. Carbon-black oil volumes are excluded.
35
30
25
20
15
10
5
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
(1) Chemical competitor values calculated on a consistent basis with ExxonMobil,
based on public information. Competitor information estimated for 2004.
B USINESS MIX ENHANCES PROFITABILITY
Segment Earnings
Specialties Commodities
(billions of dollars)
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
EXXON MOBIL CORPORATION • 2004 SUMMARY ANNUAL REPORT
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