Arco Reports 50% Decline in Net for Quarter

Atlantic Richfield, the nation’s sixth-largest oil company, reported Monday that it recorded a loss for the year and that fourth-quarter earnings dropped 50.1%.

Mobil, the No. 2 ranked oil company, reported that its fourth-quarter earnings increased about 50%, primarily due to “much healthier” profit margins on refined petroleum products in the United States and abroad.

Atlantic Richfield said it had net income of $142 million in the fourth quarter of 1985, compared to $285 million for the same period in 1984. Revenue fell 9% to $5.45 billion from $5.99 billion.

Arco took an after-tax charge against fourth-quarter earnings of $164 million to cover the cost of a $315-million payment to the Department of Energy.

For all of 1985, Arco said it had a net loss of $202 million, compared to net income of $567 million for all of 1984. Revenue for the full year was $22.49 billion, down 8.5% from $24.59 billion a year earlier.

Arco said its full-year results include after-tax provisions of $1.15 billion for unusual items, including $987 million in the second quarter to provide for anticipated losses on the sale of the company’s East Coast refining and marketing operations, personnel reductions and the write-down of some retained assets.

In addition, Arco took a $514- million after-tax write-down in 1985 for discontinued operations, mostly involving mineral assets.

In 1984, Arco made a $166-million after-tax provision for unusual items and a $806-million after-tax provision for discontinued operations.

Lodwrick M. Cook, Arco’s chairman and chief executive, said the company was helped by higher margins on refined petroleum products as well as increased production of foreign crude oil and natural gas. He said Arco was hurt by higher interest expense and lower volume and prices for domestic crude oil and natural gas.

Mobil, based in New York, said fourth-quarter profit totaled $425 million, as opposed to $284 million in the same period of 1984. Revenue edged up to $16.3 billion from $16.1 billion. For the full year, Mobil had a profit of $1.04 billion, down from 1984’s $1.27 billion. Revenue edged down to $60.38 billion from $60.47 billion.

Mobil said its 12-month profit was reduced by a one-time charge of $508 million for the restructuring of Montgomery Ward.

Chairman Rawleigh Warner Jr. said that, on the domestic side, much healthier refining and marketing results were partly offset by lower exploration and producing earnings, reflecting lower natural gas and crude oil prices.