EARNINGS : Chevron, Mobil Net Off; Phillips Gains
Phillips Petroleum Co. on Tuesday reported improved earnings in the second quarter, due in part to higher crude oil prices, while Chevron Corp. and Mobil Corp. both reported lower earnings.
Chevron’s earnings dropped 22.3%, in part because last year’s numbers included an unusual gain; Mobil’s dropped 22.7%, in part because this year’s figures included a loss from the sale of assets, and Phillips’ rose 15.9%.
All companies benefited from higher crude prices and better refining margins during the period, though Phillips reported high costs from extensive scheduled maintenance on its refineries. The companies also reported lower income from chemical businesses, though Mobil reported an increase from the sale of its interest in a chemical company.
Chevron Corp.
Net income for the quarter ended June 30 was $404 million, compared to $520 million in the like period of 1988.
Last year’s second-quarter earnings included a $148-million gain mainly from Chevron’s sale of its interest in the mineral company AMAX Inc.
This quarter’s earnings were reduced by $10 million in adjustments, including special items and the effects of foreign exchange. Revenue for the quarter was $8.2 billion, compared to $7.3 billion in 1988.
Mobil Corp.
Estimated earnings for the second quarter were $401 million, compared to $519 million in 1988.
The 1989 figure included a $140-million loss on the sale of business operations in South Africa. Without that loss, earnings would have increased about 4% over last year, due mainly to improved income from refining and marketing operations and lower financing costs.
Earnings also improved from recent acquisitions, including a refinery in Louisiana, the domestic oil and gas interests of Newmont Mining and a chemical plant in Texas.
Revenue for the quarter was $14 billion, unchanged from a year earlier.
Phillips Petroleum Co.
Net income was $197 million, compared to $170 million in the like period a year ago.
Earnings were helped by a $21-million gain from the settlement of a dispute involving an interstate pipeline company, Phillips reported. Revenue for the quarter was $3.3 billion, compared to $2.9 billion a year ago.
