Big Oil Companies Report Mixed Results

Mobil Corp., one of several oil companies to report second-quarter results, said its profit fell 43% due to depressed demand for petroleum and chemical products.

Atlantic Richfield Co. said its profit went up 25.6%, thanks to a strong market for refined products on the West Coast and higher prices for crude oil and natural gas.

And Chevron Corp. said earnings dropped 9%, mostly due to short-term costs associated with work force cuts.

But Phillips Petroleum Co., recording savings from refinancing its debt and laying off 1,250 workers, said its earnings increased more than sixfold from a year ago.

Mobil Corp. reported that it earned $225 million, compared to $445 million in the second quarter of 1991. Earnings per share were 60 cents, compared to $1.08 last year.

Revenue was $15.2 billion, up from $14.4 billion.

Chairman Allen E. Murray called the earnings unsatisfactory, saying higher crude oil prices and depressed demand for refined products have squeezed margins.

Murray said the company was cutting its capital budget to $4 billion, down from $5.4 billion last year, to respond to the economic slowdown.

Atlantic Richfield Co. reported earning $309 million, or $1.91 per share, compared to $246 million, or $1.51 per share, in the second quarter of 1991.

Revenue was $4.52 billion, up from $4.26 billion.

The latest quarter reflected a gain of $65 million from the sale of a majority interest in Lyondell Petrochemical Co.

The Los Angeles-based company said it benefited from wider profit margins and higher sales in refining and selling gasoline on the West Coast. Its production operations gained on higher crude oil and natural gas prices.

Chevron Corp. reported earnings of $350 million in the second quarter versus $384 million a year earlier, when special items bolstered profit by $120 million.

Per-share profit was off 6%, to $1.03 from $1.09, since fewer shares were outstanding.

Revenue for the quarter was $10.6 billion, compared to $9.7 billion last year.

The San Francisco company set aside $92 million during the quarter to pay for layoffs, relocations and early-retirement incentives. But prior-year income tax refunds and gains from the sales of assets reduced the impact of those costs.

The company said earnings increased 47% over the second quarter last year without the one-time costs. That was due mainly to higher prices for crude oil and U.S. refined products and reduced operating expenses.

Phillips Petroleum reported earning $104 million or 40 cents a share, compared to $16 million or six cents per share in the second quarter of 1991.

Revenue was $3.09 billion, down from $3.25 billion for the same period in 1991.

Exploration and production profits nearly doubled, while gas, gas liquids and petroleum product profits were $65 million, compared to $20 million a year ago.

Chemical earnings were down 57% to $19 million.