Arco’s Earnings Climb to Record $2 Billion in ’90 : Energy: Unocal, Phillips, Pennzoil and Amerada Hess report sharp increases in fourth-quarter earnings, mainly because of the Persian Gulf crisis.

Atlantic Richfield Co., a Los Angeles-based energy concern, on Monday reported record profit for 1990, in part because of sharply higher earnings late in the year as Iraq’s invasion of Kuwait drove up the price of oil.

Unocal Corp., also based in Los Angeles, reported earnings that were substantially up in the fourth quarter of 1990, mostly because of the Persian Gulf crisis, which pumped oil prices as high as $41 a barrel. So did Phillips Petroleum Co., Pennzoil Co. and Amerada Hess Corp.

For the year, Phillips’ earnings more than tripled, while Pennzoil’s net income declined slightly.

Arco also announced a 10% hike in its quarterly common stock dividend to $1.375 a share from $1.25.

The reports were in line with expectations that the entire industry would see large profits in the three months ending Dec. 31, particularly in the “upstream” end of the business--exploration, production and development--most affected by high crude oil prices.

“Clearly, we expected the bulk of the earnings gains would come from the production end of the business, and reserves (for environmental charges) and writeoffs of questionable wells would come in the fourth quarter, and it appears that’s what happened,” said Andrew Gray III, an analyst with Pershing & Co. in Jersey City, N.J.

Industry officials have sought to portray the robust profits as anomalies, for fear of negative congressional and public reaction. Nevertheless, several windfall profits tax measures have been introduced in Congress.

Arco, the nation’s seventh-largest oil company in sales, reported net earnings up 40.4% to $566 million, or $3.45 per share, in the fourth quarter of 1990, compared to $403 million, or $2.38 per share, a year earlier.

That brought total 1990 income to a record $2.011 billion, or $12.15 a share, up 3% from 1989’s $1.953 billion, or $11.26 per share. Sales were $18.8 billion, up from $16 billion.

“Third- and fourth-quarter increases in crude oil prices as a result of market reaction to Iraq’s invasion of Kuwait in August played an important role in our earnings improvement,” said Lodwrick M. Cook, chairman of Arco.

For the year, Arco took a one-time charge of $400 million for taxes, royalties on Alaskan oil and unspecified future environmental cleanup costs. Analysts said those costs include investments to meet the new federal Clean Air Act. Arco’s results also included a $323-million gain from a change in accounting methods.

Unocal Corp., the nation’s 11th-largest energy company in sales, reported fourth-quarter net income of $38 million, or 16 cents per share, contrasted with a net loss of $26 million, or 11 cents a share, a year ago.

Total 1990 net earnings were up 54% to $401 million, or $1.71 a share, from $260 million, or $1.11 a share, in 1989. Revenue was $11.81 billion, up from $11.35 billion.

In the fourth quarter, the company took an $80-million after-tax charge on the writedown of an investment in a New Mexico molybdenum mine. For the year, Unocal saw a one-time gain of $132 million from the sale of Norwegian assets, gains from deferred tax benefits and charges for litigation and unspecified environmental costs.

In other oil earnings:

* Phillips Petroleum Co., the nation’s eighth-largest energy firm, reported quarterly net income of $237 million, or 92 cents a share, contrasted with a net loss of $255 million, or $1.04 a share, a year before. For 1990, the company’s net income more than tripled to $779 million, or $3.13 per share, from $219 million, or 90 cents a share, in 1989.

The fourth-quarter results included a $57-million charge for environmental costs.

Revenue for 1990 was $13.98 billion, up from $12.49 billion in 1989.

* Amerada Hess Corp. of New York reported that its net income in the fourth quarter more than tripled to $235.2 million, or $2.90 a share, from $70.8 million, or 88 cents a share, a year earlier. For the year, the company’s profit increased to $482.7 million, or $5.96 a share, from $476.3 million, or $5.87 a share, a year earlier.

Fourth-quarter results included $114.6 million earned from trading in oil markets and a one-time gain of $87.3 million from the settlement of an insurance claim. For 1990, revenue was $7.08 billion, up from $5.68 billion in 1989.

* Pennzoil Co. of Houston reported fourth-quarter net income of $29.9 million, or 75 cents a share, contrasted with a net loss of $102.5 million, or $2.94 a share, the year before. For 1990, the company reported net income of $93.8 million, or $2.37 a share, down from $103.5 million, or $2.42 a share.

Revenue for 1990 was $2.37 billion, up from $2.33 billion in 1989.

The fourth quarter of 1989 included a charge of $125 million for the disposal of a business unit.