Mobil’s Earnings More Than Double, Exxon’s Rise by 33%

Mobil Oil Corp.’s profits more than doubled and Exxon Corp.’s were up by a third in the second quarter, buoyed by cost cutting and higher domestic natural gas prices, the companies said Friday.

Mobil credited its strong presence in the Pacific Rim, cost cutting and higher natural gas prices for its 127% earnings gain.

Exxon, meanwhile, said its second-quarter earnings climbed nearly 33% on revenues that rose less than 1%. More than $200 million of the $305-million profit increase came from lower operating expenses, Exxon said.

Mobil reported second-quarter profits of $579 million--up $324 million from $255 million in the same period of 1992. Earnings per share were $1.41, compared to 60 cents a year earlier.

The results included a one-time $60-million net gain from settlement of previous tax issues for international operations which were partially offset by some environmental and restructuring costs.

Revenues rose to $16.2 billion from $15.2 billion.

“Considering the continued economic problems in both the U.S. and Europe, we had a good quarter,” said Chairman Allen E. Murray. “Oil and gas production was up, refinery runs increased, and petroleum product sales were higher.

“Earnings improved on higher U.S. natural gas prices and on our strong presence in the growing Pacific Rim markets,” Murray added. “Moreover, our ongoing focus on restructuring and other income improvement initiatives contributed to the good quarter.”

U.S. exploration and producing operations for the quarter earned $148 million--up $50 million from last year, while international operating earnings for that unit were $245 million--a gain of $22 million.

Mobil’s stock closed at $71, up $1.25 a share on the New York Stock Exchange late Friday.

Exxon earned nearly $1.24 billion, or 98 cents per share, on revenues of $27.9 billion, compared to profits of $930 million, or 73 cents per share, on revenues of nearly $27.8 billion during 1992’s second quarter.

The results include $210 million in one-time credits--mostly tax credits and gains on asset sales--compared to $24 million in such credits in the year-ago period.

The gains came despite weak crude oil prices and sluggish economic conditions, Chairman L.R. Raymond said.

He said lower operating expenses accounted for over $200 million of the improvement.

“Expense reductions resulted from the effect of restructuring steps taken in North America in 1992 as well as continued emphasis on efficiency improvements within each of the major business segments worldwide,” Raymond said.

Petroleum product margins also were improved, and refining crude runs and sales of petroleum products were higher, Raymond said. The stronger U.S. natural gas market also led to both improved profits and higher sales volumes, he said.

Exxon’s stock closed Friday at $65.125 a share, up $1 on the NYSE.