Exxon Mobil’s 4Q15 performance
Exxon Mobil Corporation (XOM) posted its 4Q15 results on February 2, 2016. In 4Q15, XOM’s revenues surpassed Wall Street estimates by 14%. The company’s 4Q15 EPS stands at $0.67, around 5% higher than the estimated EPS of $0.64. However, this is 57% lower than the 4Q14 EPS of $1.60.
Exxon Mobil’s 4Q15 earnings
Exxon Mobil (XOM) saw a fall in earnings from $6.6 billion in 4Q14 to $2.8 billion in 4Q15. This was due to lower earnings from the upstream segment, which slumped from $5.5 billion in 4Q14 to $0.86 billion in 4Q15 due to the steep fall in oil prices. WTI (West Texas Intermediate) average prices fell from $73 per barrel in 4Q14 to $42 per barrel in 4Q15.
XOM’s downstream segment saw its earnings rise from $0.5 billion in 4Q14 to $1.4 billion in 4Q15 due to higher margins. We will analyze XOM’s quarterly segment-wise performance in the next part.
Exxon Mobil’s peers BP Plc (BP) and Chevron Corporation (CVX) reported a fall in their 4Q15 earnings compared to 4Q14. BP, as well as CVX, reported losses in their upstream segments in 4Q15 over 4Q14. According to Wall Street estimates, Royal Dutch Shell (RDS.A) is also expected to post 47% lower EPS in 4Q15 over 4Q14. The Vanguard Energy ETF (VDE) has 41% exposure to integrated energy sector stocks, including XOM and CVX.
Exxon Mobil’s yearly performance
Exxon Mobil’s 2015 revenues stood at $269 billion, surpassing estimates by 6%. However, its 2015 revenues are 35% lower than its 2014 revenues. However, stronger refining margins drove higher downstream earnings, partially offsetting the fall in upstream earnings. XOM reported an EPS of $3.90 in 2015, beating Wall Street estimates by 1%. However, its 2015 EPS is 49% lower than its 2014 EPS.