Exxon 2007 Annual Report Download - page 29

DOW N S TRE A M S T R AT E G IES
ExxonMobil’s Downstream is a large, diversified, and
profitable business, with marketing presence and refining
complexes around the world. Fundamental Downstream
business strategies position the company to deliver
long-term growth in shareholder value that is superior
to competition regardless of market conditions:
•
Maintain best-in-class operations, in all respects
•
Provide quality, valued products and services to
our customers
•
Lead industry in efficiency and effectiveness
•
Capitalize on integration with other ExxonMobil businesses
•
Selectively invest for resilient, advantaged returns
•
Maximize value from leading-edge technology
Execution of these strategies combined with overall operations excellence continues to deliver superior results, such as
return on average capital employed. Our financial objectives in the Downstream can be summarized into three broad areas –
margin enhancement, cost efficiency, and capital discipline.
DOW N S TRE A M C O M PET I TIVE A DVA N TAGES
Portfolio Quality • We are the world’s largest global refiner,
manufacturer of lube basestocks, and supplier/marketer
of petroleum products. Our large, world-class facilities are
located in major markets around the world.
Global Integration • Over 75 percent of our refining capacity
is integrated with our lubes and/or chemical businesses. Our
global functional organization delivers efficient development
and deployment of best practices and new technology.
Discipline and Consistency • Systematic processes and
corresponding efficient execution have established us as an
industry leader in operations excellence and cost effectiveness.
Value Maximization • Proprietary Molecule Management
technology allows us to optimize raw materials, maximize
premium products, and highgrade product placement.
Long-Term Perspective • We maintain a disciplined capital
approach focused on profitable and resilient investments
that build on our advantages.
2007 Results and Highlights
Continued leadership in safety, reliability, efficiency, scale, and technology contributed to our best-ever financial performance
and superior operating results.
Earnings were a record $9.6 billion, up 13 percent from 2006.
More than $2 billion of pretax operating cost efficiencies and margin enhancements were achieved. We have delivered an average
of $2 billion in pretax improvements per year since 2003 through improvements derived from our scale, integration, collaboration
via our global functional organization, and industry-leading proprietary technology.
Downstream capital expenditures were $3.3 billion in 2007, up more than 20 percent versus 2006, reflecting new
investments in China and additional environmental expenditures.
Return on average capital employed was 38 percent, up from 36 percent in 2006.
Refinery throughput was 5.6 million barrels per day, in line with 2006 as volume growth was offset by divestments.
Petroleum product sales continued to be strong at 7.1 million barrels per day.
Refining & Supply, Fuels Marketing, and Lubricants & Specialties
ExxonMobil Integrated Oil Competitor Average(1)
2003 2004 2005 2006 2007
Downstream Return on Average Capital Employed
(percent)
(1) Royal Dutch Shell, BP, and Chevron values are estimated on a consistent basis
with ExxonMobil, based on public information.
40
35
30
25
20
15
10
5
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