Exxon, Chevron Post Higher Quarterly Nets
Exxon, the world’s largest company, said Tuesday that its refining and retail operations rebounded strongly in the fourth quarter, posting a 26.4% gain in after-tax profit over the same period a year ago. For the full year, however, earnings declined $650 million.
Chevron Corp., the nation’s fourth-largest oil company, reported a 38% rise in fourth-quarter earnings and a 1% gain for the year.
New York-based Exxon said it netted $1.80 billion in the last three months of 1985, compared to a profit of $1.42 billion in the same period of 1984. Revenue edged up to $24.68 billion from $24.55 billion.
Exxon’s total 1985 profit was $4.87 billion, an 11.9% drop from $5.52 billion the previous year. Revenue fell to $93.21 billion from $97.28 billion.
San Francisco-based Chevron said its post-tax profit in the last three months of 1985 was $601 million, up from $434 million a year earlier. Revenue decreased to $10.7 billion from $13.3 billion.
For all of 1985, the company said its earnings totaled $1.54 billion, as opposed to $1.53 billion in 1984. Revenue dipped to $45.3 billion from $47.4 billion.
Company officials said that Chevron’s revenue include those of Gulf Corp. for 1985, while the 1984 figures include Gulf revenue starting May 1, when the two companies merged.
The decrease in quarterly and yearly revenue was mainly due to sales of certain assets during 1985, including Gulf Canada and Gulf’s Southeast U.S. refining and marketing operations, they added.
In a prepared statement, Exxon Chairman C. C. Garvin Jr. called the company’s strong fourth-quarter showing “a gratifying turnaround from the depressed market condition of last year’s fourth quarter.”
Commenting on the yearly results, Garvin said there were stronger earnings in both domestic and foreign petroleum and natural gas operations, offsetting lower chemicals earnings and higher corporate and financing costs.
He said Monday’s Supreme Court decision not to review the Hawkins judgment, a crude oil pricing case, which resulted in Exxon’s having to pay back $2.1 billion for consumer overcharges, “has no additional impact of 1985 earnings, since previous provisions against earnings have provided for Exxon’s potential net cost, including interest.”
Chevron Chairman George M. Keller called 1985 “a difficult year, with sluggish demand for petroleum products and declining crude oil prices.”
“In one important area, our 1985 performance was very strong,” Keller added. “We reduced our total debt, both short and long term, by $6.1 billion, including $1.5 billion in the fourth quarter.
“The integration of Gulf and Chevron operations is essentially complete now and we are moving to create a stronger, more efficient company,” he said.
