Exxon Quarterly Earnings Higher; Texaco Down; Schlumberger Reports Loss
NEW YORK (AP) _ Exxon Corp., the world’s largest oil company, today reported that its third-quarter earnings rose by 6 percent, on sales that fell by 23 percent. Texaco, the nation’s third-largest oil concern, said its earnings fell by 46 percent.
Separately, Schlumberger Ltd., the world’s largest oilfield services company, said late Thursday it had a third quarter loss, after posting a profit in the 1985 third quarter.
Exxon said it earned $1.055 billion, or $1.46 per share, on third-quarter sales of $17.18 billion. That compared with a profit of $995 million, or $1.33 per share, in the third quarter of 1985 on $22.3 billion in revenue.
Including special items, the company’s quarterly profit was $1.07 billion, or $1.49 a share, compared with $1.21 billion, or $1.62 a share in the third quarter of 1985.
″While net income was up in comparison to the third quarter of 1985, earnings before special items dropped $133 million,″ said Exxon Chairman C.C. Garvin Jr. ″This decline reflected crude price reductions averaging over 50 percent, only partially offset by stronger petroleum product and chemicals margins.
″Special items in the third quarter of 1985 included restructuring charges for certain chemical and refining facilities in Germany. Special items did not noticably affect third quarter 1986 results,″ he added.
Third-quarter capital expenditures totalled $1.527 billion, compared with $2.765 billion in the year-ago period, the company said.
Exxon said that its profit in the first three quarters of this year was $3.88 billion, or $5.36 a share, on $57.41 billion in revenue. That compared with a profit of $3.06 billion, or $4.03 a share, on sales of $68.53 billion for the first nine months of 1985.
Without special items, the company said its nine-month earnings totalled $4.15 billion, or $5.73 a share, vs. $3.75 billion, or $4.94 a share in the year-ago period.
At Texaco’s White Plains, N.Y. headquarters, John J. McKinley, chairman and chief executive officer, said the earnings reflected the effects of depressed crude oil prices offset by improvements in refining and marketing profits.
The company said its third-quarter earnings totalled $162 million, or 67 cents a share, on sales of $7.3 billion. This compared with a 1985 third- quarter profit of $301 million, or $1.26 a share, on $11.3 billion of revenue.
The company said its quarterly profit included a $32 million upward revision, because of tax changes, on a 1985 $114 million nine-month extraordinary gain because of the sale of a partial stock interest in Texaco Canada Inc.
In the first three quarters, Texaco said its earnings totaled $675 million, or $3.83 per share, down 27 percent from $926 million, or $2.81 per share, for the same period of 1985. Nine-month revenue declined 29 percent to $24.8 billion from $35 billion in the year-earlier period.
In its third-quarter earnings statement, Schlumberger said it lost $41.93 million on sales of $1.29 billion, compared with a profit of $208.1 million, or 70 cents a share, on sales of $1.56 billion in in the year-ago period.
Affecting quarterly earnings were a $53 million gain from favorable settlement of a court suit; $35 million in provisions mainly related to unfavorable computer lease commitments and the anticipated loss on divestiture of a small electronics business; $24 million in personnel termination costs; and provisions anticipating losses on certain investments, offset by an anticipated $60 million gain on another investment.
Euan Baird, company chairman, said Schlumberger’s quarterly performance was primarily affected by the continued drop of oilfield activity worldwide.
In the first nine months, Schlumberger said it earned $161.47 million on sales of $4.29 billion, compared with $723.7 million, including nonrecurring charges of $24 million, on sales of $4.89 billion a year ago. Earnings per share fell to 56 cents from $2.42.