Exxon Profit Rises 50% in Quarter

Exxon on Wednesday reported a 50% gain in its second-quarter earnings, while Tenneco reported a sharply lower profit.

Exxon, the nation’s largest oil company, said it earned $1.115 billion--after special charges of $22 million--on revenue of $17.98 billion. That compared to second-quarter 1985 earnings of $745 million--after special charges of $527 million--on revenue of $22.97 billion, company officials said.

Tenneco, ninth largest in terms of revenue, said it netted $80 million, down 47% from $152 million in the second quarter last year. Revenue was unchanged at $3.7 billion.

The results reflected the adoption of a new method of accounting for pension costs and a previously reported change in the oil and gas method of accounting, Houston-based Tenneco said.

Exxon Chairman C. C. Garvin Jr. said the $22-million second-quarter charge included charges for a corporate restructuring as well as a gain from the sale of refining and marketing operations in Denmark.

In the year-ago quarter, the company’s earnings included a $545-million special charge in anticipation of an adverse federal court ruling involving overcharging for crude oil. The special charge was offset by certain other credits.

In February, Exxon paid the government $2.095 billion, representing $895 million in overcharges, plus interest, for overcharges from 1975 through January, 1981.

The company said its second-quarter capital and exploration expenditures were down 22% from the second quarter of last year and l3% from the first quarter. This reflected management actions in response to the worldwide collapse of oil prices, Garvin said.

The company said its second-quarter earnings from exploration and production operations fell $457 million in the United States and $199 million abroad, mainly because of lower crude prices.

But worldwide marketing and refining earnings were up $467 million from the year-earlier period, while chemical earnings totaled $123 million--a $51-million increase.

Tenneco said its natural gas pipeline and oil processing and marketing businesses both reported somewhat higher earnings than in the previous quarter, as did its non-energy divisions--construction and farm equipment, automotive, packaging and chemicals.