Phillips Unveils Plan to Raise $500 Million

Phillips Petroleum Co., following an industry trend to shed unprofitable holdings, said it hopes to raise $500 million from asset sales and boost cash flow under a three-point plan announced Monday.

The program is expected to yield at least $500 million by 1993 and add more than $200 million annually in cash flow within the next two to three years, said C. J. Silas, Phillips chairman and chief executive.

Some layoffs are expected with the sales, and other jobs could be eliminated as the nation’s 11th-largest oil company finds more ways to streamline its operations, Phillips said.

The three-point program involves selling assets, reducing costs and generating a greater return on assets the company has left over.

The Oklahoma-based company recently sold or offered for sale several oil tankers, a Utah refinery, its advanced composites business and a partial interest in a pipeline.

Silas said in a statement that the program will help the company focus on its core businesses of oil and gas exploration and production, gas processing, petroleum refining and petrochemical manufacturing.

Industry analysts said they were not surprised by the announcement. George Froley, a money manager with Westwood-based Froley, Revy Investment Co., said the plan was an indication that Phillips wanted to “just get rid of stuff that won’t make money.” Regarding the reduction in staff, he said there is a “trend to just get your head count down.”

A recent example of large-scale layoffs is taking place at Atlantic Richfield Co. The company recently announced a corporate restructuring that will cut more than 1,000 jobs. The job cuts began with 145 layoffs at Arco’s refinery and marketing unit based in Los Angeles.