CONTACT: Dave Dickson, +1 703-846-2378, Bill Cummings, +1 703-846-3110 or
Lauren Kerr, +1 703-846-1021
Mobil news release
MOBIL CORPORATION
3225 GALLOWS ROAD
FAIRFAX, VIRGINIA 22037-0001
TELEPHONE: (703) 846-2500
MOBIL ANNOUNCES THIRD QUARTER 1999 OPERATING EARNINGS OF $705 MILLION
Third Quarter
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1998 1999 Change
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Operating Earnings ($millions) 497 705 208
per share ($) 0.62 0.89 0.27
assuming dilution ($) 0.61 0.87 0.26
Net Income ($millions) 509 688 179
per share ($) 0.64 0.87 0.23
assuming dilution ($) 0.63 0.85 0.22
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. Overall, industry fundamentals and favorable expense performance helped
earnings.
. Crude oil and natural gas prices increased significantly.
. However, downstream margins, particularly in the international area, came
under severe pressure.
. Per barrel operating expenses decreased 6 percent on a year-to-date basis.
. Upstream earnings increased primarily due to improved industry fundamentals.
. Crude prices were up about $8.00 per barrel; natural gas prices also up.
. Expense performance continued to be favorable.
. Exploration expenses were lower.
. Volumes from growth areas were up significantly; however, overall
production was down about 3 percent primarily due to contractual
reductions in Indonesia.
. Downstream earnings decreased as margins lagged the rapid rise in crude
prices.
. U.S. Marketing and Refining experienced a significant amount of
unscheduled refinery downtime which has been rectified.
. However, benefits from initiatives in the international area continued to
grow resulting in favorable expense performance.
. Chemical earnings improved.
. Polyethylene margins strengthened.
. Expenses were lower.
. Performance at the recently upgraded Beaumont olefins plant approached
capacity.