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👋Hello World: ExxonMobil FY24Q1 Financial Statement
Our first visual newsletter on an industry leader
Connor Clark
May 16, 2024 • Estimated Reading Time: 4 minutes
Today in a snapshot:
📈Financial Performance: Achieved a 9.9% margin and a net profit of $8.2 billion for Q1.
💪Cash Flow and Investment: Strong cash flow supported significant investments in capital expenditures and robust dividend payouts.
⚖️Balance Sheet Stability: No significant changes in overall balance sheet ratios, maintaining financial stability.
Income Statement
Margin Decline: Margin decreased to 9.9% from 13.2% in FY23Q1.
Revenue Reduction: Net revenue fell by U$3.5 billion to U$83 billion.
Profit Decrease: Net profit dropped by U$3.2 billion to U$8.2 billion.
Factors Impacting Earnings: Decrease due to lower refining margins and natural gas prices. Additional influences include derivative impacts, tax and inventory adjustments, and divestments.
Volume and Cost Management: Gains from increased production in Guyana and Beaumont refinery expansion, alongside structural cost savings, offset impacts from reduced base volumes and higher maintenance costs.
Cost Savings: Achieved U$10.1 billion in structural cost savings since 2019; aims for a total of U$15 billion by 2027.
Cash Flow and Shareholder Returns: Generated U$14.7 billion in operational cash flow and U$10.1 billion in free cash flow. Distributed U$6.8 billion to shareholders, including dividends and share repurchases.
Share Repurchase Program: Temporarily paused due to administrative processes; set to increase to U$20 billion annually post-transaction.
Upcoming Dividend: Declared a U$0.95 per share dividend payable on June 10, 2024.
Financial Health: Debt-to-capital ratio at 16%, net-debt-to-capital ratio at 3%, with a cash balance of U$33.3 billion at period end.
Cashflow Statement
Robust Cash Flow: Maintained a strong cash flow of U$14.7 billion.
Capital Expenditure: Invested U$5.0 billion in capital expenditures.
Dividends: Returned U$3.9 billion to investors through dividends.
Balance Sheet
Strategic Shift in Liability Structure: Notable increase in current liabilities accompanied by a reduction in non-current liabilities, primarily driven by the reclassification of long-term debt to short-term. This adjustment enhances financial flexibility, aligning with proactive debt management strategies.
Growth in Current Assets: Significant enhancement in current assets, driven by an uptick in Accounts Receivable (AR) and liquidity boosts from increased cash reserves. These moves are pivotal for bolstering operational agility and responding swiftly to market opportunities.
Stability in Core Financial Metrics: Overall assets and equity value remain stable, reflecting a robust balance sheet that supports strategic initiatives and long-term growth without diluting shareholder value.
Cheers,