Oil Firms See Rise in Profits for 1st Quarter

Oil companies on Monday reported surprisingly strong profits for the first quarter on higher oil and natural gas prices and strong winter demand to fuel furnaces.

The country’s two biggest oil companies, Exxon and Mobil, increased their profits about 15%. Los Angeles-based Atlantic Richfield also posted a 15% gain, and Amoco reported a nearly 40% profit gain.

The overwhelming profit strength from oil and gas production offset generally lower profits from chemicals, which faced stiffer price competition industrywide. But higher oil prices hurt refining profits.

Texaco, which no longer has a chemical business, posted a 30% profit gain.

Mobil and Chevron said the costs of retooling to make less-polluting gasoline in California hurt their refining profits. Nonetheless, Chevron said its overall profit rose 34%.

* Exxon’s profit rose to $1.9 billion from $1.7 billion a year ago. For each outstanding share, profit rose to $1.51, up from $1.33. Net income in first-quarter 1996 was boosted $125 million by unspecified tax benefits.

* Mobil said first-quarter earnings increased by $100 million to $736 million, or $1.83 a share, compared with $1.57 a share for the first three months of 1995.

* Arco said net income rose to $370 million, from $322 million in 1995, including a $28-million gain from special items. Earnings a share rose to $2.26 from $1.97.

* Texaco reported net income for the first quarter was $386 million, a 30% increase over the $297 million for the same period last year. Earnings a share rose to $1.42, up from $1.08 a year ago.

* Chevron reported net earnings rose 34% to $616 million, or 94 cents a share, compared with earnings of $459 million, or 70 cents a share, for the same period a year ago.

* Amoco said first-quarter earnings rose to $728 million, or $1.47 a share, from $523 million, or $1.05 a share, for the period a year ago.

* Shell Oil reported record first-quarter profit of $483 million, up 42% from $340 million in the same period a year ago.

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At a Glance:

Continental Airlines posted an $88-million profit in the first quarter, earning $2.36 a share, contrasted with a loss of $30 million, or $1.21 a share, in the same period a year ago. . . . US Healthcare said its first-quarter profit fell 14% because of expenses associated with its pending buyout by Aetna Life & Casualty to $82 million, or 53 cents a share, compared with $94 million, or 59 cents a share, for the same period last year. . . . Nabisco Holdings said net income rose to $53 million, or 20 cents a share, from $48 million, or 19 cents, in the year-ago quarter. . . . Hershey said its earnings fell to $59.4 million, or 77 cents a share, from $60.6 million, or 70 cents, in the year-ago quarter. . . . Ralcorp said profit from operations for the fiscal second quarter fell to $20.6 million, or 62 cents a share, compared with $21.9 million, or 65 cents a share, last year.

Knight-Ridder posted a 17% drop in first-quarter profit despite higher revenue, earning $23.5 million, or 48 cents a share, compared with $28.4 million, or 55 cents a share, in the same quarter last year. . . . Kaiser Aluminum said its first-quarter earnings more than doubled from a year ago, rising to $9.9 million, or 11 cents a share, from net income of $3.5 million in the year-earlier quarter. . . . Union Carbide’s first-quarter earnings fell 28% to $157 million, or $1.11 a share, contrasted with profit from operations of $218 million, or $1.49, in the year-earlier period. . . . Jenny Craig reported net income of $8.3 million, or 62 cents a share, for the third quarter, compared with $1.2 million, or 24 cents a share, for the same quarter a year ago. . . . Chart House Enterprises reported a $630,000 loss, or a loss of 8 cents a share, for the first quarter, contrasted with net income of $888,000, or 11 cents a share, for the year-ago period.