Exxon Mobil produces better-than-expected first quarter results

Exxon Mobil says high US petrol prices are largely responsible for its better-than-expected first quarter earnings.

The company believes improved operating efficiences also contributed to the strong performance. It recently sold its interest in the European fuels joint venture with BP.

Exxon Mobil has reported first quarter earnings per share of $1.44 - the equivalent of £1 - topping analysts' estimates by 9 cents.

Net income rose to $5.05bn (that's £3.5b) in the first quarter, up from $3.4bn (or £2.3bn) a year earlier.

Revenues totalled $57.3bn (which equates to £39.7bn) in the period, up from £54.1bn (£37.5bn) in the first quarter of 2000.

The company says the increases are due to much higher US petrol prices as a result of growing demand, a rise in refining margins and improved efficiencies.

Company chairman Lee Raymond said: "Volumes increased in every business line except for natural gas, which was affected by the controlled shutdown of facilities in the Aceh province of Indonesia."

Mr Raymond says capital expenditure increased in line with higher full-year spending plans.

The company bought 17.5 million shares of its common stock for the treasury at a gross cost of $1.44bn (or £1bn) in the first quarter.

Exxon Mobil said: "These purchases were to offset shares issued in conjunction with company benefit plans and programmes and to reduce the number of shares outstanding."