EXXONMOBIL an, CHEN, Jacob, jonathan, maureen, nana, YVES
UNLOCKING NATURAL GAS RESOURCE VALUE
through Increasing Storage of LNG in India
& Enhancing LNG Transportation in East Asia
COMPANY OVERVIEW
ExxonMobil's Integrated Businesses
2014 Highlights
Oil price over years...
Earnings 2014: $32.5B
ROCE 2014: 16.2%
ExxonMobil also makes significant positive impacts on the global economy.
Vision
Exxon Mobil Corporation aspires to be at the leading edge of competition in affordable and reliable energy business to help meet the world’s growing energy needs.
Mission
Exxon Mobil Corporation is committed to being the world's premier petroleum and petrochemical company. To that end, we must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards.
We are committed to enhancing the long-term value of the investment dollars entrusted to us by our shareholders.
We commit to be innovative and responsive, while offering high quality products and services at competitive prices.
We are committed to maintaining a safe work environment enriched by diversity and characterized by open communication, trust, and fair treatment.
We commit to be a good corporate citizen in all the places we operate worldwide.
UPSTREAM OVERVIEW
Upstream 2014
The exploration and production (E&P) sector
- Increased proved reserves by 1.5B boe.
- Completed 8 major projects, highlighted by Papua New Guinea LNG project
- Successfully managed activities in Canada, Indonesia, Russia...
- Progressed a large and diverse portfolio of LNG opportunities
Best-ever Safety performance in 2014
World-class operator
Disciplined approach in managing cost
UPSTREAM STRATEGY ANALYSIS
EFE Analysis
OPPORTUNITIES
Oil and natural gas will meet about 60% of global demand growth in 2040.
Natural gas will continue to be the fastest-growing major fuel source.
Technological advancement
Supply chain efficiency
THREATS
Influence of OPEC
Declining oil price
IFE Analysis
STRENGTHS
Full-year 2014 to 2013 earnings
Ahead of its competitors in FY2014 with upstream earnings per boe
Exxon is in a strong financial position.
WEAKNESS
Weaker earnings from downstream operations
SWOT Analysis
UPSTREAM STRATEGIES
- GROWING PROFITABLE OIL AND GAS PRODUCTION
- UNLOCKING NATURAL GAS RESOURCE VALUE (Selected)
Taking advantage aggressively of the growing energy market (W10, O6) = > ExxonMobil should maintain and continue to develop its natural gas wells and resources.
Reducing production costs through innovative and cost effectiveness (W1, O7) => ExxonMobil should develop LNG operations through technology and innovative ventures.
QSPM
- Large Natural Gas reserve (1.3 trillion BOE)
- Natural Gas taking over Coal as 2nd source of energy
- Highest drilling success rate in Natural Gas industry
CPM
ExxonMobil has more resources than competitors with larger operation and stronger financial background.
Positioning Map
Grand Matrix
Space Matrix
BCG
A low market growth rate and a high market share. ExxonMobil is able to generate more cash however, does not use its cash to its total efficiency.
FINANCIAL ANALYSIS
EPS-EBIT Analysis
NPV & IRR
IRR: 153%
NPV: $48,367.82 (million)
Financial Ratios
ACTIONS
ExxonMobil's Current Plan
- Increasing returns and profitability through disciplined investing
Portfolio of 120 projects supports investment selectivity - NG & LNG
- Building upon a strong global position to meet growing LNG demand
Apply high-impact technologies & Deploy world-class project execution capability
Balanced Scorecard
Storage in Mumbai, India (1)
- 6 million metric ton storage site
- 1.2$ billion per 1 million metric ton (4)
- Cost: 7.2$ Billion
Transportation Costs
- 4 ships added to the East Asian market (Ship from Australia & Papua New Guinea)
- Cost 200$ million each ship
- 800 Million$
Ship Location
- 1 ship holds 165,000 cubic meters - 4 ships = 660,000 (10)
- 4 ships added to East Asian Market
