Exxon Net Jumps 75% on Refined Products

Exxon Co., the nation’s biggest oil company, said Wednesday that its first-quarter earnings soared on higher income from sales of refined products such as gasoline and heating oil.

Irving, Tex.-based Exxon’s income jumped 75% to $2.24 billion. Revenue rose 15% to $30.69 billion.

Exxon said its strong earnings were the product of unusually favorable market conditions in foreign refining and marketing.

“Falling crude oil prices, coupled with the loss of industry refinery capacity in the Middle East, caused petroleum product margins to be higher than usual, particularly in Europe and the Far East,” Chairman Lawrence O. Rawl said.

Crude prices fell during the Gulf War when major producers such as Saudi Arabia began pumping more oil.

A drop in oil prices helps companies such as Exxon that receive much of their revenue from refining and selling gasoline and other products made from crude. Retail gasoline and heating oil prices typically do not fall as quickly as crude prices.

Earnings from refining and marketing rose more than sevenfold in the quarter to $1.35 billion, Exxon said.

Domestic refining profit was $256 million, contrasted with a loss of $28 million a year ago, Exxon said.

Pretax earnings from exploring for and producing crude fell 20%, while chemical-sector earnings jumped 23%.

The big profit at Exxon followed double-digit earnings increases at Mobil Corp., Amoco Corp., Texaco Inc., Chevron Corp. and Occidental Petroleum Corp.

Phillips Petroleum Co. was an exception to the trend. Its earnings were down 38%.