Exxonmobil Unveils Aggressive Long-Term Growth Plans

US-based diversified conglomerate, ExxonMobil, has outlined an aggressive growth strategy to more than double earnings and cash flow from operations by 2025 at today’s oil prices.

“We have got the best portfolio of high-quality, high-return investment opportunities that we have seen in two decades. Our plan takes full advantage of the company’s unique strengths and financial capabilities, using innovation, technology and integration to drive long-term shareholder value and industry-leading returns,” Mr. Darren Woods, Chairman and CEO, said at the company’s annual meeting of investment analysts at the New York Stock Exchange.

Growth plans include steps to increase earnings by more than 100% – to $31-bn by 2025 at 2017 prices – from last year’s adjusted profit of $15-bn, which excluded the impact of US tax reform and impairments. Mr. Woods said this plan projects double-digit rates of return in all three segments of Exxon Mobil’s business – upstream, downstream and chemical.

In its chemical business, ExxonMobil expects to grow manufacturing capacity in North America and Asia Pacific by about 40%. That growth will be achieved in part by adding 13 new facilities, including two world-class steam crackers in the US. These investments would enable the company to meet increasing demand in Asia and other growing markets. “We are uniquely positioned to take advantage of the global demand growth for higher-value products in the downstream and chemical,” Mr. Woods said.

Investments at refineries

ExxonMobil’s downstream business is projected to double earnings by 2025 by upgrading its product slate through strategic investments at refineries in Baytown and Beaumont in Texas and Baton Rouge, Louisiana, Rotterdam, Antwerp, Singapore, and Fawley in the UK. These projects are expected to result in double-digit returns by enabling increased production of higher-value products, such as ultra-low sulphur diesel, chemicals feedstocks and basestocks for lubricants. As a result of these improvements, the company’s 2025 downstream margins are projected to increase by 20%. Expansion is supported by projected demand growth in emerging markets, and includes entries into new markets such as Mexico and Indonesia. It is supported by integration with chemical manufacturing and upstream production, the company said.

In the upstream, the company expects to significantly increase earnings through a number of growth initiatives involving low-cost-of-supply investments in US tight oil, deepwater and liquefied natural gas (LNG). Growth coming online from new and existing projects is expected to increase production from 4 million oil-equivalent barrels per day to about 5 million.