Major U.S. Oil Firms Boost Profits
The nation’s biggest oil companies Monday reported first-quarter profit increases, as an upturn in their chemical units offset lower refining earnings caused by a mild winter.
* Atlantic Richfield Co.’s first-quarter earnings more than doubled from a year ago on the strength of higher chemical and crude oil prices and increased cost cutting.
The Los Angeles-based energy company said earnings soared to $322 million, or $1.97 a share, on sales of $4.4 billion, up from of $149 million, or 92 cents a share, on revenue of $4 billion a year earlier. Revenue rose 14%, to $4.46 billion from $3.93 billion a year ago.
Arco Chief Executive Mike Bowlin attributed the dramatic improvements to “better crude oil prices, strong performances by Arco’s chemical interests and the benefits of companywide cost reductions. This combination more than offset a downturn in refining and marketing performance and lower domestic natural gas prices.”
* Exxon Corp., the largest U.S. oil company, said earnings shot up 42% to $1.7 billion, or $1.33 a share, in the first quarter, from $1.2 billion, or 92 cents a share, a year earlier.
Revenue climbed to $29.8 billion from $26 billion.
The Irving, Tex.-based company said its chemicals division had record earnings of $547 million, boosted by higher chemical product margins and sales.
“Chemical earnings rose to record levels in the first quarter, more than tripling the results of a year ago,” Chairman Lee Raymond said.
He said rising crude oil prices more than offset the effects of unseasonably warm weather, which cut sales of natural gas in Europe and further depressed U.S. natural gas prices.
* Mobil Corp., the second-largest U.S. oil company, said its first-quarter profit rose 19% to $636 million, or $1.57 a share, from $535 million, or $1.31 a share, a year ago. Revenue soared to $17.7 billion from $15.1 billion.
The Fairfax, Va.-based company said income from chemicals shot up $159 million to $174 million.
* Texaco Inc. said its earnings climbed to $301 million, or $1.10 a share, from $202 million, or 69 cents a share, a year earlier. Revenue rose to $9.1 billion from $7.4 billion.
“While the quarter’s performance benefited from worldwide crude oil prices . . . this was offset by extremely depressed refining margins in the United States and in Europe and an almost 30% comparative drop in U.S. natural gas prices,” said Alfred DeCrane Jr., Texaco’s chief executive.
The White Plains, N.Y.-based company said its first-quarter results reflect gains of $88 million from the sale of land by its affiliate Caltex Petroleum Co. in Japan and sales of non-core U.S. producing properties.
* Occidental Petroleum Corp. posted first-quarter net income of $178 million, or 49 cents a share, contrasted with last year’s loss of $40 million, or 19 cents a share. Revenue rose to $2.7 billion from $2.1 billion a year earlier.
The Los Angeles-based company attributed the gains to improved operating results in both its chemical and oil divisions.
* Amoco Corp. said its strong first-quarter earnings were largely due to record results in its chemicals unit.
It posted a profit of $523 million, or $1.05 a share, compared to $398 million, or 80 cents a share, in the first quarter of 1994. Sales rose to $7.6 billion from $6.8 billion.
The Chicago-based company said its chemicals unit earned a record $233 million for the quarter, compared to $88 million a year ago.
