Oil companies flex muscles
|
|
January 25, 2000: 10:23 a.m. ET
Exxon Mobil, Chevron beat 4Q forecasts despite losses at refineries and pump
|
NEW YORK (CNNfn) - Exxon Mobil Corp. and Chevron Corp. both beat analysts' forecasts for the fourth quarter, helped by rising oil prices that have lifted the industry's results.
Exxon Mobil, the world's largest oil company, was reporting its first quarter as a combined company. Its earnings excluding merger expenses and special items was $2.7 billion, or 77 cents a diluted share. Analysts surveyed by First Call had been looking for 75 cents in the period.
In the year-earlier period, Exxon and Mobil would have posted combined income of $2.0 billion, or 58 cents a share, on a pro-forma basis before special items and merger costs.
The Irving, Texas, company said that rising oil prices helped the profitability of its exploration and drilling business, accounting for virtually all of its profit. But it said the inability to pass along some of the increases to customers as fast as crude prices increased hurt profitability of its refining, marketing and distribution business, which it said were slightly below break even for the period.
Net income including charges and special items rose to $2.3 billion, or 65 cents a share, in the quarter, up from $1.4 billion, or 39 cents a share, a year earlier.
Revenue rose to $56.0 billion in the quarter, up from $43.1 billion in the year-earlier period.
For the year, income excluding merger charges and special items was $8.4 billion, or $2.38 a diluted share, compared with $8.8 billion, or $2.49 a share, in 1998.
Net income in 1999 was $7.9 billion, or $2.25 a diluted share, compared with $8.1 million, or $2.28 a share, in 1998. Revenue for the year fell to $186.9 billion from $169.6 billion.
Chevron blows past expectations
San Francisco-based Chevron had earnings before special items of $819 million, or $1.24 a diluted share. Analysts surveyed by First Call had been looking for $1.23 in the period. Income is up 63 percent from the $503 million, or 76 cents a share, it made in the fourth quarter of 1998.
Net income including charges and items came to $809 million in the quarter, or $1.23 a diluted share, compared with a loss of $206 million, or 31 cents a share, a year earlier.
Chevron reported the same pressure on margins for its refining, marketing and distribution business as did Exxon Mobil. Chevron said that the U.S. side of those operations made money in the period, but worldwide the company lost $6 million from those operations excluding special items, compared with $71 million in earnings a year ago.
Revenue for the period rose to $11.0 billion from $7.3 billion.
For the year, earnings excluding special items was $2.3 billion, or $3.47 a diluted share, up 18 percent from $1.9 billion, or $2.95 a share, in 1998. Net income including all items came to $2.1 billion for the year, or $3.14 a diluted share. That's up 55 percent from the $1.3 billion, or $2.04 a share, in 1998. Annual revenue was up almost 20 percent to $36.6 billion from $30.6 billion.
In trading Tuesday, shares of Dow component Exxon Mobil (XOM) were up 1-1/4 to 85-1/2, while Chevron (CHV) was up 11/16 to 89-1/2 in early trading.
|
|
|
|
|
|