Exxon Mobil Corporation

Company Profile By – Rohan Shah (12)

Company Overview
• • • • US based, headquartered in Irving, Texas, employs 80,000 + The company operates in more than 200 countries under the names Exxon Mobil, Exxon, Esso, and Mobil Engaged in exploration and production, refining, and marketing of oil and natural gas The company is also engaged in the production of chemicals, commodity petrochemicals, and electricity generation Exxon Mobil - Ranked No. 1 in Fortune 500 for FY 2009 with revenues USD 442,851 mn & Profit of USD 45,220 mn Current Management - Rex W. Tillerson, Chairman of the Board of Directors and Chief Executive Officer
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Business Description
Three Segments: Upstream, Downstream & Chemicals UPSTREAM: Exploration & Production of Crude oil & Natural Gas The upstream business has operations in 36 countries Exxon Mobil has interests in electric power generation facilities with total capacity of 16,000 megawatts (MW).

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Business Description continues…
• • DOWNSTREAM: Downstream activities include refining, supply, and fuels marketing The company has interests in 12 lubricant refineries and manufactures three brands of finished lubricants (Exxon, Mobil, and Esso) At the end of FY2009, the company had interests in 37 refineries across 20 countries, with distillation capacity of 6.2 million barrels per day Fuel products and services are provided to aviation customers at more than 630 airports and to marine customers at more than 180 marine ports around the world

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Business Description continues…
• • Chemical: The chemicals division manufactures and sells petrochemicals Exxon Mobil Chemical is an integrated manufacturer and global marketer of olefins, aromatics, fluids, synthetic rubber, polyethylene, polypropylene, oriented polypropylene packaging films, plasticizers, synthetic lubricant base stocks, additives for fuels and lubricants, zeolite catalysts, and other petrochemical products.

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History & Background
• With the merger of Exxon and Mobil in 1999, the newly formed Exxon Mobil Corporation brought together a shared history that dates back over 120 years to their origins as part of the Standard Oil family of companies The re-organized Standard Oil Company of New Jersey and Standard Oil Company of New York emerged as two of the strongest companies. (The former would become Exxon; the latter Mobil.)

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Planning & Strategy

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SWOT Analysis

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Strengths…
• In 2009, refinery throughput averaged 6.4 million barrels per day, and petroleum product sales were 7.2 million barrels per day • Exxon Mobil leads the petrochemical industry with interests in 49 wholly-owned and joint-venture facilities around the world • Diversified revenue stream helps to reduce exposure to economic conditions or political stability in any one country or region • The net profit of the company increased at a CAGR of 16% during FY2004-FY2009, from $25.3 billion in FY2004 to $45.2 billion in FY2009. The net profit increased by 11.4% in FY2009 over FY2008 • It spent $847 million on R&D in FY2009. R&D expenses in previous years were $814 million in FY2008, $733 million in FY2007, $712 million in FY2006, and $649 million in FY2005

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Weakness…
• In October 2008, the company was fined by the European Commission along with eight other petrochemical companies for price fixing of paraffin wax • Exxon Mobil was fined E83.6 million (approximately $123 million) • Exxon Mobil's neglect has contaminated the soil, groundwater, tidal water, and sediment of San Francisco Bay. The suit demands that Exxon clean the site and pay the damages • The workers of Mobil Producing Nigeria (MPN), an affiliate of Exxon Mobil, went on a strike in April 2008 over pay and working conditions • Such employee actions adversely affect the operations of the company and result in decline in the productivity. • The upstream division in the US has recorded a consistent decline in its production volumes • The crude oil and natural gas liquid production volumes in the region have been declining since FY2005

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Opportunities…
• Over the next 10 years, the company expects about 60% percent of the world’s petrochemical demand growth to occur in Asia, with more than one-third in China alone ExxonMobil is currently participating in building the Golden Pass LNG regasification terminal on the US Gulf Coast, with a planned capacity of about 2 billion cubic feet per day. Exxon Mobil plans to invest between $25 billion to $30 billion annually over the next five years to deliver major projects to meet growing world energy demand The demand for global energy is expected to increase approximately 35% from 2005 to 2030.

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Threat…
• A weak economic outlook for these regions could depress industrial development and impact the demand for the company’s products • The company might experience fluctuations in exchange rates, complex regulatory requirements, and restrictions on its ability to repatriate investments and earnings from its foreign operations • The company might also face changes in the political or economic conditions in the foreign countries it operates in • Such instabilities could negatively impact the revenue growth of the company • Introduction of the Kyoto Protocol for the reduction of greenhouse gases. The protocol calls on industrialized countries to reduce their greenhouse gas emissions level by 5.2% on an average annual basis during the 2008-12 period

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TOP COMPETITORS
• • • • • • • • • • • Chevron Corporation Royal Dutch/Shell Group TOTAL S.A. ConocoPhillips Lyondell Chemical Company Valero Energy Corporation BP Plc Repsol YPF, S.A. Imperial Oil Limited Sunoco, Inc. Hess Corporation.

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Thank You.

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