EARNINGS : Big Oil Companies Report Sharply Higher Profits in the Second Quarter

Big oil companies, including Chevron Corp., Atlantic Richfield Co. and Unocal Corp., reported stronger second-quarter results Monday as higher crude oil prices and renewed demand for petrochemicals offset weak natural gas prices.

The results fell in line with the rest of the industry, which has seen generally higher profits in the April-June quarter. Chemicals had been a drag on oil company profits, but have rebounded with the rest of the economy.

Crude oil prices averaged about $2 per barrel higher in the quarter and prices for refined products such as gasoline also rose.

Major producers noted that oil prices have been declining in recent weeks and natural gas prices have remained about 20% below year-ago levels.

Chevron, based in San Francisco, earned $607 million, or 93 cents a share, on revenue of $9.6 billion, against a profit of $257 million, or 39 cents a share, on revenue of $8.8 billion in last year’s second quarter.

Los Angeles-based Arco earned $391 million, or $2.39 a share, compared to $24 million, or 14 cents a share, in last year’s second quarter. The 1994 figures included $154 million in after-tax charges for job cuts and restructuring. Second-quarter ’95 revenue was $4.4 billion, up from $4.2 billion in the ’94 quarter.

Los Angeles-based Unocal reported a net profit of $78 million, or 28 cents a share, compared with $59 million, or 21 cents a share, for the same period last year. Revenue was $2.29 billion, versus $2.05 billion a year earlier.

Mobil Corp., the nation’s second-largest oil company, reported that operating earnings rose 38%, not counting one-time charges to pay for a massive restructuring.

Including the special charges taken in this year’s second quarter and a year ago, the company earned $179 million, or 42 cents a share. A year ago the company’s net income was $198 million, or 46 cents a share. Revenue increased to $18.8 billion from $16.2 billion a year earlier.

Earnings at Amoco rose to $533 million, or $1.08 a share, from $410 million, or 83 cents a share. Revenue was $7.73 billion, versus $8.04 billion in the ’94 quarter.

Shell Oil Co., U.S. subsidiary of Royal Dutch-Shell Group, said earnings were $385 million in the quarter, compared to a loss of $194 million in the same period last year. Revenue was $6.39 billion, up 24.6% from $5.13 billion in the ’94 period.

* Dallas-based Southwest Airlines said its earnings edged up slightly from last year, mostly due to its expansion into new markets and higher yields, or the average fare per person, for the quarter.

Southwest Airlines earned $59.7 million, or 41 cents a share, for the quarter ended June 30, compared to $58.5 million, or 40 cents a share, a year earlier.

Sales rose almost 12% to $738.2 million for the latest period, compared with $661.1 million in 1994’s second quarter.

* Capital Cities/ABC Inc. reported a 10.2% gain in second-quarter profit. Capital Cities, which operates the ABC television and radio networks, owns radio and TV stations, publishes newspapers, books and magazines and provides programming for cable TV, earned $208.9 million, or $1.36 a share, compared to $189.5 million, or $1.23 a share, in last year’s second quarter.

An analyst characterized the results as “a little disappointing,” and Capital Cities’ stock fell 3.78%.

Revenue rose 7.2% to $1.65 billion for the quarter from $1.54 billion a year earlier.

* American Express Co. said its profit climbed 15% in the second quarter as the number of its cardholders increased, and they spent more using the card.

The company said its net income for the quarter rose to $410 million, or 81 cents a share, from $357 million, or 69 cents a share, a year earlier.