Exhibit 99
Fairfax, VA, January 22, 1996 -- Mobil Corporation today reported
estimated fourth quarter 1995 operating income of $760 million, up
$105 million from the comparable period of 1994. Estimated full
year 1995 operating income of $2,846 million was up $615 million
from the prior year and was a record for operating income,
exceeding the previous record of $2,331 million, which was set in
1980 when crude oil prices were about $35 per barrel, twice the
current level.
Net special charges included in 1995 totaled $470 million. The net
special charges included: (a) charges of $590 million for various
worldwide restructuring initiatives;
(b) non-cash charges of $487 million resulting from the adoption of
FAS 121, the new accounting standard for Impairment of Long-Lived
Assets; partially offset by (c) net benefits of $607 million,
mainly on sales of certain Chemical and Mining assets, and a
favorable litigation settlement. These net special charges reduced
1995 reported net income to $2,376 million. Full year
1994 reported net income was $1,079 million, which included net
special charges of $472 million, primarily for property writedowns
and restructuring, and a non-cash charge of $680 million for the
change in accounting principle related to inventories. Estimated
reported earnings per common share for full year 1995 were $5.87
compared with $4.28 for full year 1994 (excluding the $680 million
non-cash charge in 1994 for the change in accounting principle
related to inventories).
"Compared with 1994, Mobils operating income of $2,846 million
improved by $615 million, or 28%," said Lucio A. Noto, Mobils
Chairman and Chief Executive Officer. "In total, Mobil had no net
help from petroleum and petrochemical commodity prices. The impact
of higher crude oil prices and petrochemical margins was offset by
weakness in North American natural gas prices and
worldwide refining margins. In spite of these business conditions,
all operating segments contributed to the improvement. Mobil
benefitted from strong operating performance, particularly at our
refineries, and from initiatives throughout the company which
reduced costs and increased sales volumes."
Controllable cash operating expenses were reduced by more than $300
million pre-tax versus 1994, and have been reduced by over $1.1
billion since 1991. This was achieved even though costs were up
more than $1.5 billion due to higher volumes, new facilities, and
inflation. Compared with last year, refinery throughput was up 2%
and worldwide petroleum product sales volumes were up 4%. Somewhat
offsetting these favorable factors, oil and gas production was 4%
lower, reflecting asset sales, natural decline in the U.S., and
temporary operating disruptions in Nigeria.
- 2 -
"In 1995, major steps were taken to further improve returns from
existing assets and to profitably grow the business," said Noto.
"The realignment of worldwide staff support services and
restructuring programs in the U.S. and European downstream are on
track. In addition, we recently announced a further restructuring
in the U.S. upstream to improve competitiveness and
identify additional non-core properties which will be efficiently
depleted, traded, or sold. Operating expense savings from these
programs are expected to ramp up during 1996. By year-end 1996, we
should be in a position to realize projected annual pre-tax savings
of more than $1 billion from these programs."
Mobil has also continued to sell non-core businesses that are worth
more to others, and in 1995 received cash estimated at $2 billion,
primarily from the sale of Mobil Chemicals Plastics Division and
Mining and Minerals South Fort Meade phosphate mine. As a result,
Mobils year-end debt-to-capitalization ratio declined to 27%. This
level is expected to rise as Mobil increases investment spending to
take advantage of the many attractive opportunities for growth in
the company's core businesses, which could include acquisitions.
Mobil also advanced several large projects in 1995 that are
expected to generate earnings and cash flow growth in the future.
In the upstream sector, these include the liquefied natural gas
(LNG) projects in Qatar, the Hibernia oil development off the east
coast of Canada, a natural gas liquids (NGL) recovery project in
Nigeria, and the first phase development of oil
discoveries in Equatorial Guinea. In the downstream sector,
construction is progressing on refinery upgrading projects in
Australia and Japan, and new market entries were made in Latin
America. Consistent with our goal of being number one in lubes,
Mobil is constructing a second lube base stock refinery
in Saudi Arabia and is progressing a lube base stock facility at
our Singapore refinery. The company is also advancing several lube
blend plant projects around the world. In Chemical, Mobil is
expanding its worldwide paraxylene capacity to take advantage of
strong growth in the Pacific Rim. Mobil is also expanding ethylene
capacity at Beaumont, Texas to improve the scale and
competitiveness of that facility, and is developing a major
expansion of its joint venture petrochemical complex in Saudi
Arabia.
"The variability of commodity prices in 1995 underscores the fact
that business conditions are likely to remain volatile and
unpredictable," said Noto. "However, in this environment, Mobil
continues to position itself to provide superior returns to its
shareholders through cost control, initiatives, and profitable
growth." Mr. Noto concluded, "1995 was a particularly difficult
year for our employees as numerous restructuring initiatives were
actively progressed to ensure we remain competitive over the
long haul. In spite of these activities and no net help from
industry fundamentals, our employees met the challenge and
delivered record earnings."
- 3 -
COMPARISON OF FULL YEAR 1995 WITH 1994
The following comments address the operating performance of the
major business segments during 1995, as compared with 1994:
o Exploration and Producing income of $1,393 million was $69
million higher. In the United States, income was $332 million,
$26 million higher. Higher crude oil prices, lower exploration
expenses, and reduced capital recovery charges more than offset
lower natural gas prices and lower production, which mainly
resulted from asset sales and natural field declines.
International income of $1,061 million was $43 million
higher. Higher prices for crude oil and Indonesian LNG more
than offset higher operating expenses in new growth areas,
lower production volumes, and lower natural gas prices in
Canada and the U.K. In addition, exploration expenses were
lower as a result of improved drilling success and the
timing of well completions.
o Marketing and Refining income of $1,142 million was $178
million higher. Income in the United States was $333
million, $60 million higher. Benefits from business
initiatives, including lower expenses, higher sales volumes,
improved lube income, and excellent refinery performance
offset weaker business conditions.
International income was $809 million, $118 million higher.
More than offsetting generally weak refining margins and
lower marketing margins, especially in Japan, were lower
expenses in Europe and Australia, benefits from ongoing
business initiatives, higher sales volumes, particularly in
the rapidly growing Pacific Rim countries, higher lube
income, and the benefit of the Singapore refinery upgrade.
o Chemicals record income of $679 million was $455 million
higher. Petrochemical income improved significantly as a
result of higher worldwide polyethylene and paraxylene
margins. Our petrochemical joint venture in Saudi Arabia,
in the final year of its tax holiday, contributed
substantially to the improvement. Increased volumes from
the Singapore aromatics complex also boosted income.
Additionally, income from the OPP films business was higher,
resulting from lower expenses and other benefits from
business initiatives.
o Corporate and Other expense of $73 million was $1 million
higher, as increased real estate income and lower expenses
were offset by one-time costs associated with the staff
support services realignment.
- 4 -
o Net Financing Expense of $295 million was $86 million
higher, mainly reflecting higher average effective interest
rates this year, and the absence of certain favorable
non-recurring items reported in last years results.
COMPARISON OF 4TH QUARTER 1995 WITH 4TH QUARTER 1994
Mobil's estimated fourth quarter 1995 operating income was $760
million, up $105 million, or 16%, from fourth quarter 1994. Net
special benefits this quarter were $15 million, including gains on
asset sales of $598 million (mainly from Mobil Chemicals Plastics
Division and Mining & Minerals South Fort Meade phosphate rock
mine), non-cash charges of $487 million for asset impairments
resulting from the adoption of FAS 121, and other net charges
of $96 million, mainly for further restructuring in North American
E&P and European lubricant blending. The net special benefits
increased this year's fourth quarter net income to $775 million.
Fourth quarter 1994 net income was $523 million and included net
special charges of $132 million. The following comments address
the operating performance of the major business segments during
the fourth quarter versus the same quarter last year:
o Exploration and Producing income of $339 million was $6
million lower. In the United States, income of $95 million
was $37 million higher, as the impact of higher natural gas
prices, lower exploration expenses, and reduced capital
recovery charges were partly offset by lower production
volumes. International income was $244 million, down $43
million. The impacts of lower production volumes, lower
natural gas prices in Canada and the U.K., and higher
expenses in new growth areas were partly offset
by higher liquids prices and lower exploration expenses.
o Marketing and Refining income of $379 million was $109
million higher. In the United States, income was $98
million, up $44 million. Ongoing business initiatives
resulted in lower operating expenses, improved
refinery performance, higher sales volumes, and increased
lube income, which more than offset weaker business
conditions. International income of $281 million was $65
million higher, reflecting higher refining margins in all
enclaves, lower operating expenses, particularly in
Europe and Australia, and the benefits of the Singapore
refinery upgrade.
o Chemical income of $140 million was up $30 million, as
higher volumes, better paraxylene margins, and business
initiatives more than offset lower polyethylene margins.
o Net Financing Expense of $80 million was $26 million higher,
principally due to higher average effective interest rates
and the absence of certain favorable non-recurring items
reported in the fourth quarter of 1994.
- 5 -
Capital and Exploration Expenditures for the fourth quarter of 1995
were estimated at $1,371 million, an increase of $212 million from
the comparable period last year. For full year 1995, worldwide
capital and exploration expenditures were estimated at $4,268
million, compared with $3,825 million for full year 1994.
Mobil's estimated Return on Average Shareholders' Equity for the
twelve months ended December 31, 1995 was 13.5%, compared with
10.4% for 1994 (excluding the cumulative effect of the change in
accounting principle). Estimated Return on Average Capital
Employed for the twelve months ended December 31, 1995 was
11.0%, compared with 8.4% for 1994 (excluding the cumulative effect
of the change in accounting principle).
Mobil's estimated Debt to Capitalization Ratio was 27% at December
31, 1995 and 31% at December 31, 1994.
Common Stock Dividends were $.925 per share in the fourth quarter
of 1995, $.075 per share higher than the comparable quarter of
1994. Full year 1995 common stock dividends of $3.625 per share
were $.225 higher than full year 1994.
Laurie Spahr 466-1014 or (703) 846-1014
Corp. Public Relations http://www.mobil.com/
3225 Gallows Rd. #3C819
Fairfax, VA 22037
Table 1
MOBIL CORPORATION
Fourth Quarter Twelve Months
---------------------- ----------------------
1994 1995 Incr/ 1994 1995 Incr/
INCOME ($MM) Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
Petroleum Operations
E&P: United States 20 (292) (312) 125 (107) (232)
International 287 156 (131) 951 948 (3)
------ ------ ------ ------ ------ ------
Total E&P 307 (136) (443) 1,076 841 (235)
M&R: United States 57 98 41 241 229 (12)
International 172 220 48 647 451 (196)
------ ------ ------ ------ ------ ------
Total M&R 229 318 89 888 680 (208)
------ ------ ------ ------ ------ ------
Total Petroleum 536 182 (354) 1,964 1,521 (443)
Chemical 103 641 538 102 1,164 1,062
Corporate and Other (a) (62) 32 94 (98) (14) 84
Net Financing Expense (54) (80) (26) (209) (295) (86)
------ ------ ------ ------ ------ ------
Income Before Change in
Accounting Principle 523 775 252 1,759 2,376 617
Change in Accounting
Principle (b) - - - (680) - 680
------ ------ ------ ------ ------ ------
Net Income 523 775 252 1,079 2,376 1,297
========== ====== ====== ====== ====== ====== ======
COMMON SHARES OUTSTANDING (MM)
Average 397.0 394.6 (2.4) 398.0 395.4 (2.6)
End of Period ... ... ... 396.0 394.6 (1.4)
EARNINGS PER COMMON SHARE
BASED ON ($) (c)
Before Chg in Accounting
Principle 1.28 1.93 0.65 4.28 5.87 1.59
Net Income 1.28 1.93 0.65 2.57 5.87 3.30
DIVIDENDS
Common Stock
Total Paid ($MM) 337 365 28 1,353 1,434 81
Per Share ($) 0.85 0.925 0.075 3.40 3.625 0.225
Preferred Stock ($MM) 15 14 (1) 58 56 (2)
(a) Includes the results of Real Estate operations, Mining and Minerals,
administrative expenses, and other corporate items.
(b) Reflects the cumulative impact of the change in the method of applying
the lower of cost or market test for crude oil and product inventories,
recognized January 1, 1994.
(c) The earnings per common share calculation is based on income, less
preferred stock dividend requirements, divided by the weighted average
number of common shares outstanding.
Table 2
MOBIL CORPORATION
1994 by Quarter and Year 1995 by Quarter and Year
INC. ADJ. FOR ------------------------------ ------------------------------
SPEC. ITEMS ($MM) 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Est Est
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Petroleum Oper.
E&P: U.S. 77 79 92 58 306 82 109 46 95 332
Int'l 258 256 217 287 1,018 295 266 256 244 1,061
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Total E&P 335 335 309 345 1,324 377 375 302 339 1,393
M&R: U.S. 61 74 84 54 273 - 87 148 98 333
Int'l 175 150 150 216 691 146 153 229 281 809
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Total M&R 236 224 234 270 964 146 240 377 379 1,142
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Total Petroleum 571 559 543 615 2,288 523 615 679 718 2,535
Chemical 15 39 60 110 224 174 186 179 140 679
Corp and Other (a) (13) (31) (12) (16) (72) 4 (22) (37) (18) (73)
Net Financing Exp. (38) (54) (63) (54) (209) (65) (73) (77) (80) (295)
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Oper. Inc. Bef. Spec.
Items and Change in
Acctng. Principle 535 513 528 655 2,231 636 706 744 760 2,846
Special Items - (315) (25) (132) (472) - (527) 42 15 (470)
Change in Accounting
Principle (b) (680) - - - (680) - - - - -
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Net Income (145) 198 503 523 1,079 636 179 786 775 2,376
========== ===== ===== ===== ===== ====== ===== ===== ===== ===== ======
EARNINGS PER COMMON SHARE
BASED ON: ($) (c)
Oper. Inc. Bef. Spec.
Items and Change in
Acctng. Princip1.31 1.25 1.29 1.61 5.46 1.57 1.75 1.85 1.89 7.06
Net Income (.40)0.46 1.23 1.28 2.57 1.57 0.42 1.95 1.93 5.87
(a) Includes the results of Real Estate operations, Mining and Minerals,
administrative expenses, and other corporate items.
(b) Reflects the cumulative impact of the change in the method of applying
the lower of cost or market test for crude oil and product inventories,
recognized January 1, 1994.
(c) The earnings per common share calculation is based on income, less preferred
stock dividend requirements, divided by the weighted average number of
common shares outstanding.
Table 3
MOBIL CORPORATION
1994 by Quarter and Year 1995 by Quarter and Year
SPECIAL ITEMS ----------------------------- -------------------------------
AFFECTING INCOME 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
($MM) Est Est
----- ----- ---- ----- ------- ---- ----- ---- ----- -----
E&P United States
Asset Sales - - - (21) (21) - (22) - - (22)
Asset Impairment - - - - - - - - (366) (366)
Prop. Writedowns - (143) - (17) (160) - - - - -
Restructuring - - - - - - (30) (a) - (21) (51)
E&P International
Asset Sales - - - - - - - - 23 23
Asset Impairment - - - - - - - - (121) (121)
Prop. Writedowns - (42) (16) - (58) - - - - -
Tax Adjustment - - - - - - - - 26 26
Restructuring - - (9) - (9) - (25) (a) - (16) (41)
M&R United States
Restructuring - - - (11) (11) - (104) (b) - - (104)
LIFO/Other Inv. Ad - - - 14 14 - - - - -
Prop. Writedowns - (35) - - (35) - - - - -
M&R International
LIFO/Other Inv. Ad - - - - - - - - (13) (13)
Restructuring - - - (44) (44) - (268) (c) - (48) (316)
Prop. Writedowns - - - - - - - (29) - (29)
Chemical
Asset Sale - - - - - - - - 501 501
Restructuring - (115) - - (115) - (16) (a) - - (16)
Environ. Prov. - - - (7) (7) - - - - -
Corp/Other
Asset Sale - - - - - - - - 74 74
Environmental - - - - - - - - (24) (24)
Restructuring - 20 - - 20 - (62) (a) - - (62)
Prop. Writedowns - - - (46) (46) - - - - -
Litigation Settle. - - - - - - - 71 - 71
----- ----- ---- ----- ------- ---- ----- ---- ----- -----
Total Specials - (315) (25) (132) (472) - (527) 42 15 (470)
Change in Accounting
Principle (680) - - - (680) - - - - -
----- ----- ---- ----- ------- ---- ----- ---- ----- -----
Total Spec/Other
Items (680) (315) (25) (132) (1,152) - (527) 42 15 (470)
===== ===== ==== ===== ======= ==== ===== ==== ===== =====
(a) Staff redesign project.
(b) Includes $65 million for staff services redesign and $39 million for further
restructuring of marketing and refining operations.
(c) Includes $88 million for staff services redesign and $180 million for
European refining.
Table 4
MOBIL CORPORATION
Fourth Quarter Twelve Months
------------------------- --------------------------
CAPITAL AND EXPLORATION 1994 1995 Incr/ 1994 1995 Incr/
EXPENDITURES ($MM) Act Est (Decr) Act Est (Decr)
------- ------- ------- ------- ------- -------
Petroleum Operations
E&P: United States
Exploration Expenses 38 18 (20) 115 71 (44)
Other Expenditures 129 235 106 486 759 273
------- ------- ------- ------- ------- -------
Total E&P--U.S. 167 253 86 601 830 229
International
Exploration Expenses 136 130 (6) 401 353 (48)
Other Expenditures 333 452 119 1,156 1,496 340
------- ------- ------- ------- ------- -------
Total E&P--Int'l 469 582 113 1,557 1,849 292
------- ------- ------- ------- ------- -------
Total E&P 636 835 199 2,158 2,679 521
M&R: United States 198 142 (56) 572 475 (97)
International 237 307 70 725 809 84
------- ------- ------- ------- ------- -------
Total M&R 435 449 14 1,297 1,284 (13)
------- ------- ------- ------- ------- -------
Total Petroleum 1,071 1,284 213 3,455 3,963 508
Chemical 53 69 16 212 224 12
Other 35 18 (17) 158 81 (77)
------- ------- ------- ------- ------- -------
Total Mobil Corporation 1,159 1,371 212 3,825 4,268 443
======= ======= ======= ======= ======= =======
OTHER FINANCIAL DATA ($MM)
Total Revenues 19,164 19,766 602 67,383 74,879 7,496
Income Taxes 414 405 (9) 1,919 (a) 2,016 97
AVERAGE U.S. PRICES
Crude ($/BBL) 13.98 13.88 (0.10) 12.91 14.52 1.61
NGL ($/BBL) 11.23 10.03 (1.20) 10.37 9.94 (0.43)
Natural Gas ($/MCF) 1.62 1.84 0.22 1.90 1.58 (0.32)
AVERAGE INT'L. PRICES
Crude ($/BBL) 16.36 16.73 0.37 15.66 16.94 1.28
Natural Gas ($/MCF) 2.46 2.38 (0.08) 2.44 2.47 0.03
(a) Excludes income taxes attributable to change in accounting principle
related to foreign inventories.
Table 5
MOBIL CORPORATION
Fourth Quarter Twelve Months
---------------------- ----------------------
1994 1995 Incr/ 1994 1995 Incr/
OPERATING HIGHLIGHTS Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
NET PRODUCTION OF LIQUIDS (TBD)
United States 310 273 (37) 300 281 (19)
Canada 59 54 (5) 57 53 (4)
Indonesia 70 73 3 77 77 -
Nigeria 177 181 4 175 157 (18)
Norway 92 90 (2) 95 91 (4)
United Kingdom 78 77 (1) 70 75 5
Other 86 62 (24) 80 74 (6)
------ ------ ------ ------ ------ ------
Total International 562 537 (25) 554 527 (27)
------ ------ ------ ------ ------ ------
Worldwide 872 810 (62) 854 808 (46)
====== ====== ====== ====== ====== ======
NET PRODUCTION OF NATURAL GAS (MMCFD)
United States 1,558 1,335 (223) 1,568 1,443 (125)
Canada 485 439 (46) 461 432 (29)
Germany 381 366 (15) 368 399 31
Indonesia 1,700 1,491 (209) 1,654 1,542 (112)
United Kingdom 578 759 181 470 577 107
Other 153 171 18 149 148 (1)
------ ------ ------ ------ ------ ------
Total International 3,297 3,226 (71) 3,102 3,098 (4)
------ ------ ------ ------ ------ ------
Worldwide 4,855 4,561 (294) 4,670 4,541 (129)
====== ====== ====== ====== ====== ======
TOTAL NET
PRODUCTION (TBDOE) 1,735 1,621 (114) 1,684 1,615 (69)
====== ====== ====== ====== ====== ======
NATURAL GAS SALES (MMCFD)
United States
Equity 1,975 1,709 (266) 1,932 1,791 (141)
Resale 1,215 1,291 76 878 1,604 726
------ ------ ------ ------ ------ ------
Total United States 3,190 3,000 (190) 2,810 3,395 585
International 3,648 3,534 (114) 3,127 3,260 133
------ ------ ------ ------ ------ ------
Worldwide 6,838 6,534 (304) 5,937 6,655 718
====== ====== ====== ====== ====== ======
Table 6
MOBIL CORPORATION
Fourth Quarter Twelve Months
---------------------- ----------------------
1994 1995 Incr/ 1994 1995 Incr/
OPERATING HIGHLIGHTS Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
REFINERY RUNS (TBD)
Runs for and by Mobil
United States 874 891 17 857 895 38
Europe 417 356 (61) 420 410 (10)
Pacific Rim 622 667 45 622 658 36
All Other 156 174 18 163 148 (15)
------ ------ ------ ------ ------ ------
Total 2,069 2,088 19 2,062 2,111 49
Runs for Mobil by Others 16 9 (7) 20 9 (11)
------ ------ ------ ------ ------ ------
Worldwide Runs for Mobil 2,085 2,097 12 2,082 2,120 38
====== ====== ====== ====== ====== ======
PETROLEUM PRODUCT SALES (TBD)
United States
Automotive Gasoline
Sales to Trade 526 551 25 522 539 17
Supply/Other Sales 198 232 34 155 215 60
------ ------ ------ ------ ------ ------
Total Automotive Sales 724 783 59 677 754 77
Distillates/Jet Fuel 338 355 17 299 318 19
Other 200 208 8 196 213 17
------ ------ ------ ------ ------ ------
Total United States 1,262 1,346 84 1,172 1,285 113
Europe 855 872 17 810 803 (7)
Pacific Rim 822 789 (33) 777 793 16
All Other 352 387 35 316 331 15
------ ------ ------ ------ ------ ------
Worldwide 3,291 3,394 103 3,075 3,212 137
====== ====== ====== ====== ====== ======
U.S. CHEMICAL PRODUCTION (MM LBS)
Polyethylene 415 419 4 1,695 1,735 40
CHEMICAL SALES BY PRODUCT CATEGORY ($MM)
Petrochemicals 648 646 (2) 2,088 2,914 826
Plastics 498 369 (129) 1,846 1,918 72
Chemical Products 29 29 - 101 115 14
------ ------ ------ ------ ------ ------
Total 1,175 1,044 (131) 4,035 4,947 912
====== ====== ====== ====== ====== ======