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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 24, 1995
MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7555 13-2850309
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
3225 Gallows Road
Fairfax, Virginia 22037-0001
Telephone: (703) 846-3000
(Address of principal executive offices)
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Item 5. Other Events
The Registrant hereby incorporates by reference herein the
information set forth in its News Release dated April 24, 1995, a
copy of which is annexed hereto as exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99. Mobil Corporation News Release dated April 24,
1995 reporting estimated earnings for the first quarter of 1995.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
REGISTRANT MOBIL CORPORATION
By /S/GORDON G. GARNEY
NAME AND TITLE Gordon G. Garney, Senior Assistant Secretary
DATE April 24, 1995
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EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
------- ----------------
99. Mobil Corporation, Electronic
News Release dated
April 24, 1995
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CONTACT: John Lord, (703) 846-1014
Fairfax, VA, April 24, 1995 -- Mobil Corporation today reported
estimated first quarter 1995 net income of $636 million.
Income was up $101 million, or 19%, from the first quarter of
1994, after excluding last year's charge of $680 million for
the change in accounting principle related to foreign
inventories. Estimated earnings per common share for the first
quarter were $1.57 compared with $1.31 in the comparable period
of 1994 (before the change in accounting principle).
In commenting on this quarter's income versus last year's first
quarter, Chairman Lucio A. Noto said, "Mobil's 19% income
improvement was significant in an environment of extremely low
refining margins throughout the world and the lowest North
American natural gas prices in more than three years. Mobil's
good performance reflected strength in the Chemical segment,
particularly in petrochemicals, which benefitted from higher
industry demand and a tight ethylene market. Income also
benefitted from higher worldwide crude oil prices, up more than
$3.00/bbl. from last year's depressed levels."
Mr. Noto added, "Continuing benefits from business initiatives
to increase volume, enhance revenues, and reduce costs boosted
income this quarter. Worldwide petroleum product sales volumes
were up 7%, chemical sales volumes were up 29%, and, at the
same time, expenses continued their downward trend."
Mr. Noto continued, "We are also taking advantage of attractive
opportunities for growth which are expected to benefit future
earnings. Since the beginning of the year, we have announced:
(1) commencement of work on a natural gas liquids project in
Nigeria; (2) participation in a study to develop large gas
resources in the Sable Island area offshore eastern Canada;
(3) establishment of a new business unit to develop
independent power plant projects; (4) formation of a
consortium to evaluate and bid on new acreage in Venezuela, and
reentry into lubricant manufacturing and marketing in that
country; (5) an agreement to explore for oil and gas in
Kazakhstan; (6) a commitment to sell LNG from the Qatar Ras
Laffan project to South Korea; and ( 7) a fuels market entry
into Ecuador. In addition, Mobil's exploration program
realized several successes in both emerging and core areas
during the quarter. Significant discoveries were made in
Equatorial Guinea (offshore western Africa), Norway, and the
Netherlands."
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Mr. Noto concluded, "Petroleum sector market fundamentals
continue to be volatile and are likely to remain so in the near
term. While worldwide crude oil prices have increased since
the beginning of the year, refining margins have been very
weak, and North American natural gas prices remain low.
However, throughout the company, we continue to implement
business initiatives that will, independent of industry
conditions, improve the productivity of our assets, reduce
costs, increase shareholder value, and lay the groundwork for
future growth of the company."
COMPARISON OF FIRST QUARTER 1995 WITH FIRST QUARTER 1994
The following comments address the operating performance of the
major business segments during the first quarter of 1995, as
compared with the same quarter of 1994:
. Exploration and Producing income of $377 million was $42
million higher. In the United States, income was $82
million, up $5 million, as higher crude oil prices and
lower operating expenses more than offset lower production
volumes and significantly lower natural gas prices.
International income of $295 million was $37 million
higher. Higher crude oil and Indonesian LNG prices were
partly offset by lower Canadian natural gas prices and
higher exploration and frontier area expenses. In
addition, a fire caused a shutdown of the Ubit platform in
Nigeria and resulted in decreased production. The
platform was re-streamed late in March and most of the
lost production should be recovered over the balance of
the year.
. Marketing and Refining income of $146 million was $90
million lower. The United States was breakeven, compared
with income of $61 million last year. Industry margins
were exceptionally weak during the quarter, masking the
benefits of lower refinery turnaround activity, lower
operating expenses, and increased sales and production.
In particular, margins suffered due to decreased
distillate demand resulting from warm winter weather and
lower-than-anticipated requirements for reformulated
gasoline following its introduction on January 1, 1995.
International income of $146 million was $29 million
lower. Refining margins in all enclaves were very weak
due to low distillate demand. These were, however,
partially offset by benefits derived from ongoing business
initiatives, which contributed to higher trade sales
volumes, particularly in the Pacific Rim, and expense
savings in Europe. Income also reflected full quarter
benefits from the major refinery upgrade in Singapore, and
improved lubricants profitability in Europe.
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. Chemical income of $174 million was $159 million higher,
reflecting better industry fundamentals in most
businesses, particularly polyethylene resin. Income also
benefitted from the Singapore aromatics complex, as well
as increased sales volumes of OPP films and chemical
specialties. Business initiatives, notably in plastics
fabricating and petrochemicals, also contributed to the
income improvement.
. Corporate and Other income was $4 million, an improvement
of $17 million, mainly in real estate operations, due to
the sale of an office complex in Arlington, Virginia.
. Net Financing Expense of $65 million was $27 million
higher, principally reflecting higher average interest
rates and certain favorable non-recurring items reported
in last year's results.
Capital and Exploration Expenditures for the first quarter of
1995 were estimated at $818 million, an increase of $100
million from the comparable period last year.
Mobil's estimated Return on Average Shareholders' Equity for
the twelve months ended March 31, 1995, was 10.8%, 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 March 31, 1995,
was 8.7%, compared with 8.4% for 1994 (excluding the cumulative
effect of the change in accounting principle).
Mobil's estimated Debt to Capitalization Ratio was 31% at March
31, 1995 and 31% at December 31, 1994.
Common Stock Dividends were $.85 per share in the first quarter
of 1995, the same as the comparable quarter of 1994.
<TABLE>
Table 1
<CAPTION>
MOBIL CORPORATION
First Quarter
--------------------------
1994 1995 Incr/
INCOME ($MM) Act Est (Decr)
------ ------ ------
<S> <C> <C> <C>
Petroleum Operations
E&P: United States 77 82 5
International 258 295 37
------ ------ ------
Total E&P 335 377 42
M&R: United States 61 - (61)
International 175 146 (29)
------ ------ ------
Total M&R 236 146 (90)
------ ------ ------
Total Petroleum 571 523 (48)
Chemical 15 174 159
Corporate and Other (a) (13) 4 17
Net Financing Expense (38) (65) (27)
------ ------ ------
Income Before Change in
Accounting Principle 535 636 101
Cumulative Effect of Change in
Accounting Principle (b) (680) - 680
------ ------ ------
Net Income (145) 636 781
========== ====== ====== ======
COMMON SHARES OUTSTANDING (MM)
Average 398.3 395.8 (2.5)
End of Period 398.4 395.7 (2.7)
EARNINGS PER COMMON SHARE ($)(c)
Before Chg in Acctng Princip 1.31 1.57 0.26
Based on Net Income (0.40) 1.57 1.97
DIVIDENDS
Common Stock
Total Paid ($MM) 338 337 (1)
Per Share ($) 0.85 0.85 -
Preferred Stock ($MM) 15 14 (1)
(a) Includes the results of Real Estate operations, Mining and
Minerals, administrative expenses, and other corporate
items.
(b) Reflects the 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>
<TABLE>
Table 2
<CAPTION>
MOBIL CORPORATION
1994 by Quarter and Year 1995
INCOME ADJUSTED FOR --------------------------------- ------
SPECIAL ITEMS ($MM) 1Q 2Q 3Q 4Q Year 1Q Est
----- ----- ----- ----- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Petroleum Operations
E&P: United States 77 79 92 58 306 82
International 258 256 217 287 1,018 295
----- ----- ----- ----- ------- ------
Total E&P 335 335 309 345 1,324 377
M&R: United States 61 74 84 54 273 -
International 175 150 150 216 691 146
----- ----- ----- ----- ------- ------
Total M&R 236 224 234 270 964 146
----- ----- ----- ----- ------- ------
Total Petroleum 571 559 543 615 2,288 523
Chemical 15 39 60 110 224 174
Corp and Other (a) (13) (31) (12) (16) (72) 4
Net Financing Expense (38) (54) (63) (54) (209) (65)
----- ----- ----- ----- ------- ------
Oper. Income Bef. Special
Items and Change in
Accounting Principle 535 513 528 655 2,231 636
Special Items - (315) (25) (132) (472) -
Cum. Effect of Change in
Accounting Principle (b)(680) - - - (680) -
----- ----- ----- ----- ------- ------
Net Income (145) 198 503 523 1,079 636
========== ===== ===== ===== ===== ======= ======
EARNINGS PER COMMON SHARE
BASED ON: ($) (c)
Operating Income Before
Special Items and Change
in Accounting Principle 1.31 1.25 1.29 1.61 5.46 1.57
Net Income (.40) 0.46 1.23 1.28 2.57 1.57
(a) Includes the results of Real Estate operations, Mining and
Minerals, administrative expenses, and other corporate items.
(b) Reflects the 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>
<TABLE>
Table 3
<CAPTION>
MOBIL CORPORATION
1994 by Quarter and Year 1995
SPECIAL ITEMS ------------------------------ ------
AFFECTING INCOME ($MM) 1Q 2Q 3Q 4Q Year 1Q Est
----- ----- ---- ----- ------- ------
<S> <C> <C> <C> <C> <C> <C>
E&P United States
Asset Sales - - - (21) (21) -
Property Writedowns - (143) - (17) (160) -
E&P International
Property Writedowns - (42) (16) - (58) -
Restructuring - - (9) - (9) -
M&R United States
Restructuring - - - (11) (11) -
LIFO/Oth. Inv. Adjustmen - - - 14 14 -
Property Writedowns - (35) - - (35) -
M&R International
Restructuring - - - (44) (44) -
Chemical
Restructuring - (115) - - (115) -
Environmental Provision - - - (7) (7) -
Corp/Other
Restructuring - 20 - - 20 -
Property Writedowns - - - (46) (46) -
----- ----- ---- ----- ------- ------
Total Specials - (315) (25) (132) (472) -
Change in Accounting
Principle (680) - - - (680) -
----- ----- ---- ----- ------- ------
Total Special/Other Items (680) (315) (25) (132) (1,152) -
===== ===== ==== ===== ======= ======
</TABLE>
<TABLE>
Table 4
<CAPTION>
MOBIL CORPORATION
First Quarter
-----------------------------
CAPITAL AND EXPLORATION 1994 1995 Incr/
EXPENDITURES ($MM) Act Est (Decr)
------- ------- -------
<S> <C> <C> <C>
Petroleum Operations
E&P: United States
Exploration Expenses 12 18 6
Other Expenditures 99 95 (4)
------- ------- -------
Total E&P--U.S. 111 113 2
International
Exploration Expenses 70 77 7
Other Expenditures 201 298 97
------- ------- -------
Total E&P--Int'l 271 375 104
------- ------- -------
Total E&P 382 488 106
M&R: United States 117 124 7
International 102 143 41
------- ------- -------
Total M&R 219 267 48
------- ------- -------
Total Petroleum 601 755 154
Chemical 65 40 (25)
Other 52 23 (29)
------- ------- -------
Total Mobil Corporation 718 818 100
======= ======= =======
OTHER FINANCIAL DATA ($MM)
Total Revenues 15,118 17,627 2,509
Depreciation, Depletion,
and Amortization 668 669 1
Income Taxes 542 (a) 594 52
AVERAGE U.S. PRICES
Crude ($/BBL) 10.19 14.28 4.09
NGL ($/BBL) 9.28 9.83 0.55
Natural Gas ($/MCF) 2.28 1.48 (0.80)
AVERAGE INT'L. PRICES
Crude ($/BBL) 13.80 16.65 2.85
Natural Gas ($/MCF) 2.36 2.48 0.12
(a) Excludes income taxes attributable to change in accounting
principle related to foreign inventories.
</TABLE>
<TABLE>
Table 5
<CAPTION>
MOBIL CORPORATION
First Quarter
---------------------------
1994 1995 Incr/
OPERATING HIGHLIGHTS Act Est (Decr)
------ ------ -------
<S> <C> <C> <C>
NET PRODUCTION OF LIQUIDS (TBD)
United States 294 290 (4)
Canada 61 54 (7)
Indonesia 85 74 (11)
Nigeria 183 136 (47)
Norway 98 93 (5)
United Kingdom 68 78 10
Other 73 77 4
------ ------ -------
Total International 568 512 (56)
------ ------ -------
Worldwide 862 802 (60)
====== ====== =======
NET PRODUCTION OF NATURAL GAS (MMCFD)
United States 1,579 1,494 (85)
Canada 464 491 27
Germany 491 477 (14)
Indonesia 1,736 1,653 (83)
United Kingdom 644 733 89
Other 175 190 15
------ ------ -------
Total International 3,510 3,544 34
------ ------ -------
Worldwide 5,089 5,038 (51)
====== ====== =======
TOTAL NET
PRODUCTION (TBDOE) 1,767 1,697 (70)
====== ====== =======
NATURAL GAS SALES (MMCFD)
United States
Equity 1,979 1,900 (79)
Resale 748 1,799 1,051
------ ------ -------
Total United States 2,727 3,699 972
International 3,540 3,632 92
------ ------ -------
Worldwide 6,267 7,331 1,064
====== ====== =======
</TABLE>
<TABLE>
Table 6
<CAPTION>
MOBIL CORPORATION
First Quarter
---------------------------
1994 1995 Incr/
OPERATING HIGHLIGHTS Act Est (Decr)
------ ------ -------
<S> <C> <C> <C>
REFINERY RUNS (TBD)
Runs for and by Mobil
United States 827 904 77
Europe 368 419 51
Pacific Rim 603 679 76
All Other 165 136 (29)
------ ------ -------
Total 1,963 2,138 175
Runs for Mobil by Others 23 10 (13)
------ ------ -------
Worldwide Runs for Mobil 1,986 2,148 162
====== ====== =======
PETROLEUM PRODUCT SALES (TBD)
United States
Automotive Gasoline
Sales to Trade 495 506 11
Supply/Other Sales 145 191 46
------ ------ -------
Total Automotive Sales 640 697 57
Distillates/Jet Fuel 288 350 62
Other 182 212 30
------ ------ -------
Total United States 1,110 1,259 149
Europe 772 757 (15)
Pacific Rim 750 831 81
All Other 301 301 -
------ ------ -------
Worldwide 2,933 3,148 215
====== ====== =======
U.S. CHEMICAL PRODUCTION (MM LBS)
Polyethylene 431 460 29
CHEMICAL SALES BY PRODUCT CATEGORY ($MM)
Petrochemicals 380 751 371
Plastics 406 479 73
Chemical Products 21 33 12
------ ------ -------
Total 807 1,263 456
====== ====== =======
</TABLE>
