Exxon 2008 Annual Report Download - page 4

To Our Shareholders
2008 was another outstanding year for ExxonMobil.
We delivered $45 billion in net income, a record for the
Corporation, with each of our businesses – Upstream,
Downstream, and Chemical – achieving strong earnings
performance. Return on average capital employed
was 34 percent, and cash flow from operations and
asset sales was nearly $66 billion. These results reflect
the strength of our straightforward business model
and long-term perspective in a highly competitive
global industry.
The Corporation distributed a total of $40 billion to
our shareholders in 2008, an increase of $4 billion
from 2007, through dividends and share purchases to
reduce shares outstanding. Over the past five years,
we have distributed a total of over $146 billion to our
shareholders, including a 58-percent increase in
our annual dividend.
We recognize the uncertain economic environment
that has developed. Highly volatile commodity prices,
the global credit crisis, and the impacts of economic
slowdown have created challenging conditions affecting
businesses and consumers worldwide. At the same
time, access to global energy resources remains difficult
in some countries where policy and regulatory changes
have limited resource development.
Despite these challenges, our capital and exploration
expenditures were $26 billion in 2008. Over the next
five years, we plan to invest record amounts, more than
$125 billion, to develop new technology, deliver new
Upstream projects, increase our refining capacity, and
grow our Chemical business.
In 2008 ExxonMobil continued to lead the industry in
workforce safety performance. We also recorded zero
marine spills from company-operated marine vessels,
contributing to a greater than 60-percent reduction
in total spills greater than one barrel for the company
since 2001. These accomplishments are evidence of the
commitment, training, and performance of our workforce
throughout our worldwide operations.
Eight major Upstream projects started up in 2008,
including multiple new fields in Angola and developments
in Nigeria and Malaysia. These projects not only deliver
new supplies of crude oil and natural gas to the world,
but also deliver significant value for resource owners
and for our shareholders. The effective development
and execution of complex, long-term projects is a
competitive advantage for ExxonMobil.
In our Downstream and Chemical businesses, we
have continued to improve efficiency and increase the
capacity of our facilities. We are applying our operational
expertise to world-class investment opportunities such
as the Singapore petrochemical project, which when
completed, will be part of our largest integrated chemical
and refining site. This project, along with our partnership
in China’s first fully integrated, world-scale refining and
petrochemical project in Fujian Province, will help meet
long-term demand growth in Asia.
Meeting the projected increase in energy demand is
an enormous challenge. The world is expected to
need about 30 percent more energy in 2030 than it
does today, driven by continued economic growth in
developing countries. Oil and natural gas will continue to
meet the majority of that demand as indispensable parts
of a diverse portfolio of energy sources and suppliers.
To meet this demand, it is essential that we develop all
economically viable energy sources while at the same
time reducing environmental impact.
ExxonMobil has a steadfast commitment
to the business principles that have
proven successful for over 125 years.
Our business approach – effective
long-term risk management, disciplined
capital investment, enduring business
controls, and an unwavering commitment
to safe and reliable operations – sets
us apart from industry competition
and allows us to continue to grow
long-term shareholder value.
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