ConocoPhillips earned $1.43 billion, or $1.16 a share, in the final three months of 2012, compared to a profit of $3.39 billion, or $2.56 a share, for the same period a year earlier when results included earnings from the spun-off downstream businesses. Excluding one-time items, fourth-quarter adjusted earnings were $1.43 per share. Revenue for the period was $16.4 billion, compared with $16.1 billion a year earlier. For all of 2012, the company earned $8.43 billion, or $6.72 a share, compared with full-year 2011 earnings of $12.44 billion, or $8.97 a share. The 2011 profit included 12 months of downstream earnings, and the 2012 figure included the four months of combined earnings before the spinoff of the new Phillips 66.
Royal Dutch Shell, based in the Netherlands with its U.S. headquarters in Houston, posted a 2.6 percent rise in fourth-quarter net earnings. The results fell short of expectations. Its production rose in the fourth quarter, but expense,s including its problem-plagued initial foray into Alaskan Arctic waters, took a toll on the bottom line. It plans to continue with its aggressive investment programs in the year ahead.
The company reported $6.67 billion in fourth-quarter profit, or $1.06 a share, compared with a profit of $6.5 billion, or $1.04 a share, in the same period the previous year. Revenue in the quarter was $118.05 billion, compared with $115.58 billion in the year-ago quarter. Shell earned $26.59 billion, or $4.24 a share, in 2012, compared with $30.92 billion, or $4.97 a share, in 2011. Twelve-month revenue came to $467.15 billion, compared with $470.17 billion in 2011. Shell plans to use ambitious exploration strategies to achieve its goals, and has spent more than $5 billion on its Arctic exploration activities.
Conclusion
In comparison to Conocophillips and Royal Dutch Shell, I believe that ExxonMobil is the world’s best-run integrated oil company, based on its track record of superior returns on capital. The company boasts diversified operations across the world, with several new projects coming online through 2013.
The company’s efforts to build an unconventional resource portfolio both in North America and overseas aims at increasing production through increased exposure to large energy resources with long reserve life and low field declines. Despite the collapse in natural gas prices, ExxonMobil expects unconventional gas to play a dominant role in future supplies, owing to the rapid decline in conventional production. Its strength lies in its balanced operations, strong financial flexibility, and continuous improvement on efficiency and cost control.
With the energy sector acting as a defining catalyst for economic growth, Exxon is a good investment at its current price.
The article Exxon Mobil- What the Numbers Say originally appeared on Fool.com and is written by aakanksha patodia.
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