Phillips to Take Write-Down of $350 Million : After-Tax Charge From Mineral, Chemical Assets

Phillips Petroleum reported Tuesday that it will take an after-tax charge of about $350 million against fourth-quarter earnings as a result of writing down the value of minerals and chemical assets.

Phillips is the third large oil company to announce a substantial charge against earnings in a week.

Standard Oil Co. (Ohio) announced Dec. 3 that it would take a $1.15-billion charge against earnings because of the costs of restructuring its copper operations and reducing the value of some of its oil assets.

A day later, Amerada Hess Corp. said it would take a $430-million after-tax charge as part of a restructuring of its refining and marketing operations.

Total $188 Million

Phillips officials said write-downs in the company’s minerals business will total about $188 million. Phillips has uranium, coal and oil shale properties.

Reductions in the carrying value of various chemical assets will reduce fourth-quarter earnings by $146 million, and write-downs in other miscellaneous operations will total $16 million.

C. J. Silas, Phillips chairman and chief executive, said the write-downs are consistent with a financial restructuring plan involving the sale of assets and modifications in business strategy and operations.

Under the plan, Silas said more of the company’s resources are being channeled into business lines generating the greatest returns.

Company officials said Phillips’ uranium and oil shale projects have been on standby while some coal reserves have been sold.

The company has focused its chemical business in selected commodity chemicals, plastics, catalysts and biotechnology, officials said.