<PAGE>
PAGE 1
- - - -----------------------------------------------------------------
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): January 20, 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)
- - - -----------------------------------------------------------------
<PAGE>
PAGE 2
Item 5. Other Events
The Registrant hereby incorporates by reference herein the
information set forth in its News Release dated January 20, 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 January 20,
1995 reporting estimated earnings for the fourth
quarter and full year of 1994.
<PAGE>
PAGE 3
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/ Patricia A. Stevenson
NAME AND TITLE Patricia A. Stevenson, Senior Assistant Secretary
DATE January 20, 1995
<PAGE>
PAGE 4
EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
------- ----------------
99. Mobil Corporation, Electronic
News Release dated
January 20, 1995
<PAGE> EXHIBIT 99
-1-
Fairfax, VA, January 20, 1995 -- Mobil Corporation today reported
estimated 1994 operating income of $2,231 million, $7 million
higher than the prior year. Special charges in 1994 of $472
million, mainly resulting from on-going restructuring and asset
review programs, and the previously announced non-cash charge of
$680 million for a change in accounting principle related to
foreign inventories, reduced full year 1994 reported net income to
$1,079 million. Full year 1993 net income was $2,084 million and
included net special charges of $140 million.
In commenting on full year operating income of $2,231 million,
Chairman Lucio A. Noto said, "In 1994, Mobil's strong operating
performance more than offset a significant deterioration in
petroleum sector business conditions. Compared with 1993,
worldwide crude oil prices were about $1/bbl. lower, U.S. natural
gas prices were down more than $.30/mcf, and worldwide refining
margins were down about 30%. We estimate that depressed
hydrocarbon prices and refining margins reduced Mobil's income by
more than $500 million after-tax versus last year. Those weaker
industry conditions were partially offset by favorable marketing
margins in the international downstream area. The chemical
business was a bright spot, helped by a substantial improvement in
the petrochemical markets.
"Mobil's operating performance, which wholly offset the impact of
net negative market fundamentals and the higher expenses of an
expanded drilling program, resulted from initiatives which
increased volumes, enhanced revenues, and reduced costs. Compared
with last year, worldwide oil and gas production volumes were 2%
higher and worldwide petroleum product sales volumes were up 5%.
Marketing and Refining and Mobil Chemical both benefitted from the
Singapore refinery/aromatics complex which was streamed early in
the year. Programs to increase efficiency and reduce costs
continued to show positive results and to improve income in all
business segments. Controllable cash operating expenses were down
more than $250 million pre-tax, on top of reductions of $575
million during the previous two years, despite cost increases
associated with higher volumes, new facilities, and inflation."
Mobil's estimated fourth quarter 1994 operating income was $655
million, up $53 million, or 9%, from the fourth quarter of 1993.
This was Mobil's best quarterly operating income since the first
quarter of 1991, when prices and margins were favorably impacted by
the Middle East crisis. Special charges this quarter of $132
million, primarily for on-going downstream restructuring and for
asset writedowns in the U.S., reduced this year's fourth quarter
net income to $523 million. Fourth quarter 1993 net income was
$349 million and included net special charges of $253 million.
Commenting on fourth quarter operating income of $655 million, Mr.
Noto continued: "Mobil's fourth quarter operating income increased
versus last year, principally due to improvements in Mobil
<PAGE>
-2-
Chemical, driven by both higher margins and improved operating
performance. This increase was partly offset by lower downstream
income, mainly attributable to weaker worldwide refining margins.
These refining margins were lower by more than $1/bbl., reflecting
weak distillate prices in the face of warmer-than-normal weather
and ample supplies of product. Income benefitted, however, from
the quarter-to-quarter reductions in controllable cash operating
expenses."
Mr. Noto concluded, "Petroleum sector market fundamentals continue
to be volatile and are likely to remain so in the near term. For
example, although worldwide crude oil prices have edged up since
the beginning of the year, they remain about $17/bbl., refining
margins continue to be weak, and North American natural gas prices
remain very low. Looking beyond the near term, we are making
strategic investments to upgrade our existing asset base and to
grow in selected areas. In addition, we continue with our on-going
restructuring programs to reduce operating and staff support costs.
Finally, consistent with our goal of increasing long-term
shareholder value, we have established a target of achieving a 12%
ROCE by 1998, without any substantive help from improved business
conditions."
COMPARISON OF FULL YEAR 1994 WITH 1993
The following comments address the operating performance of the
major business segments during 1994, as compared with 1993:
. Exploration and Producing income of $1,318 million was $212
million lower. In the United States, income was $313 million,
$119 million lower, mainly due to significantly lower natural
gas prices, down 16%. Lower crude oil prices and higher
exploration expenses were mainly offset by lower operating
expenses.
International income of $1,005 million was $93 million lower,
reflecting lower crude oil and natural gas prices, as well as
higher exploration expenses. Volumes were higher as a result
of streaming new fields in Australia and the U.K. and record
Indonesian LNG sales.
. Marketing and Refining income of $970 million was $118 million
lower. Income in the United States was $279 million. Despite
lower industry margins and a reduced advantage for refining
heavier, higher-sulfur crudes, income was down only $17
million. Results benefitted from continued emphasis on process
re-engineering leading to more competitive cost, and other
business initiatives, as well as increased sales and production
and higher lube income.
<PAGE>
-3-
International income of $691 million was $101 million lower,
reflecting very weak refining margins in all enclaves. These
were partially offset by higher marketing margins and benefits
derived from ongoing business initiatives, which contributed to
higher trade sales volumes, particularly in the Pacific Rim,
and expense savings, particularly in Europe. Full year results
also reflected the benefit of the streaming of the Singapore
refinery upgrade.
Chemical income of $228 million was $184 million higher,
reflecting better performance in all businesses. Income this
year benefitted from improved industry fundamentals, notably in
polyethylene resin. Also, sales volumes were higher,
reflecting the streaming of the Singapore petrochemical complex
earlier this year, as well as capacity additions in our
European OPP films and U.S. chemical specialties businesses.
Additionally, income in our plastics fabricating businesses
improved significantly on the strength of higher volumes and
benefits from business initiatives.
. Corporate and Other expense of $72 million was $67 million
lower, mainly reflecting improved phosphate and real estate
operations and the absence of costs incurred last year on the
solar energy program prior to discontinuation of this business.
. Net Financing Expense of $213 million was $86 million lower,
reflecting lower rates and balances, with average net debt down
$500 million. Additionally, the current year benefitted from
the favorable resolution of certain disputed items.
COMPARISON OF FOURTH QUARTER 1994 WITH 1993
Mobil's estimated fourth quarter 1994 reported net income was $523
million. This quarter included net special charges of $132
million, including $55 million for on-going downstream
restructuring and $84 million associated with asset sales and
writedowns in the United States. Excluding special charges, fourth
quarter operating income of $655 million was up 9% from the
comparable period of 1993. The following comments address the
operating performance of the major business segments during the
fourth quarter versus the same quarter last year:
. Exploration and Producing income of $339 million was the same
as last year. In the United States, income of $65 million was
$8 million higher, as higher crude oil prices and lower
expenses more than offset significantly lower natural gas
prices, down 29%. International income was $274 million, down
$8 million, as lower natural gas prices and higher exploration
expenses were almost fully offset by higher volumes and higher
liquids prices.
<PAGE>
-4-
. Marketing and Refining income of $276 million was $80
million lower. In the United States, income was $60
million, down $40 million. On-going business initiatives
resulted in lower operating expenses, higher sales, and
increased lube income. These benefits were more than offset
by poor industry refining margins, in part due to the warm
weather which hurt distillate margins, and to a reduced
advantage for refining heavier, higher sulfur crudes.
International income of $216 million was $40 million lower,
reflecting continued weak refining margins in all enclaves.
Higher trade sales volumes and lower operating expenses,
particularly in Europe, helped offset the weak margins.
. Chemical income of $114 million was up $113 million,
reflecting significantly higher worldwide polyethylene
margins, higher volumes as a result of capacity additions,
and the benefits from business initiatives.
. Net Financing Expense of $58 million was $24 million lower.
This quarter included benefits following the favorable
resolution of certain disputed items.
Capital and Exploration Expenditures for the fourth quarter of 1994
were estimated at $1,164 million, an increase of $160 million from
the comparable period last year. For full year 1994, worldwide
capital and exploration expenditures were estimated at $3,830
million, compared with $3,656 million for full year 1993.
Mobil's estimated Return on Average Shareholders' Equity for the
twelve months ended December 31, 1994, excluding the cumulative
effect of the change in accounting principle, was 10.4%, compared
with 12.3% for 1993. Estimated Return on Average Capital Employed
for the twelve months ended December 31, 1994, excluding the
cumulative effect of the change in accounting principle, was 8.4%,
compared with 9.7% for 1993.
Mobil's estimated Debt to Capitalization Ratio was 31% at December
31, 1994 and 32% at December 31, 1993.
Common Stock Dividends were $.85 per share in the fourth quarter of
1994, the same as the comparable quarter of 1993. Full year 1994
common stock dividends of $3.40 per share were $.15 higher than
full year 1993.
<TABLE>
Table 1
MOBIL CORPORATION
<CAPTION>
Fourth Quarter Twelve Months
-------------------- ---------------------
1993 1994 Incr/ 1993 1994 Incr/
INCOME ($MM) Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
Petroleum Operations
E&P: U.S. 25 27 2 363 132 (231)
Int'l 297 274 (23) 1,289 938 (351)
------ ------ ------ ------ ------ -------
Total E&P 322 301 (21) 1,652 1,070 (582)
M&R: U.S. 86 63 (23) 151 247 96
Int'l 17 172 155 554 647 93
------ ------ ------ ------ ------ -------
Total M&R 103 235 132 705 894 189
------ ------ ------ ------ ------ -------
Total Petroleum 425 536 111 2,357 1,964 (393)
Chemical 1 107 106 44 106 62
Corporate and Other (a) (47) (62) (15) (190) (98) 92
Net Financing Expense (30) (58) (28) (127) (213) (86)
------ ------ ------ ------ ------ -------
Income Before Change in
Accounting Principle 349 523 174 2,084 1,759 (325)
Cum. Effect of Change in
Accounting Principl(b) - - - - (680 (680)
------ ------ ------ ------ ------ -------
Net Income 349 523 174 2,084 1,079 (1,005)
========== ====== ====== ====== ====== ===== =======
COMMON SHARES OUTSTANDING (MM)
Average 398.9 397.0 (1.9) 399.2 398.0 (1.2)
End of Period ... ... ... 398.2 396.0 (2.2)
EARNINGS PER COMMON SHARE ($)(c)
Bef Chg in Acctng Prin 0.84 1.28 0.44 5.07 4.28 (0.79)
Based on Net Income 0.84 1.28 0.44 5.07 2.57 (2.50)
DIVIDENDS
Common Stock
Total Paid ($MM) 340 337 (3) 1,298 1,353 55
Per Share ($) 0.85 0.85 - 3.25 3.40 0.15
Preferred Stock ($MM) 14 15 1 59 58 (1)
(a) Includes results of Real Estate operations, Mining and
Minerals, administrative expenses, and other corporate items.
(b) Reflects impact of the change in the method of applying the
lower of cost or market test for crude oil and product inventories,
recognized retroactively to January 1, 1994.
(c) The earnings per common share calculation is based on net
income,less preferred stock dividend requirements, divided by the
weighted average number of common shares outstanding.
</TABLE>
<TABLE>
Table 2
MOBIL CORPORATION
<CAPTION>
1993 by Quarter and Year 1994 by Quarter and Year
INC. ADJ. FOR ------------------------------ ------------------------------
SPEC. ITEMS ($MM 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Est Est
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Petroleum Oper.
E&P: U.S. 117 148 110 57 432 77 79 92 65 313
Int'l 316 245 255 282 1,098 258 256 217 274 1,005
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Total E&P 433 393 365 339 1,530 335 335 309 339 1,318
M&R: U.S. (4) 61 139 100 296 61 74 84 60 279
Int'l 138 183 215 256 792 175 150 150 216 691
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Total M&R 134 244 354 356 1,088 236 224 234 276 970
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Total Petroleum 567 637 719 695 2,618 571 559 543 615 2,288
Chemical 21 13 9 1 44 15 39 60 114 228
Corp & Other (a) (25) (55) (47) (12) (139) (13) (31) (12) (16) (72)
Net Financing Exp (73) (76) (68) (82) (299) (38) (54) (63) (58) (213)
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Oper. Inc. Bef. Spec.
Items and Change in
Acctng. Principl 490 519 613 602 2,224 535 513 528 655 2,231
Special Items - 60 53 (253) (140) - (315) (25) (132) (472)
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Inc. Bef. Change in
Acctng. Principl 490 579 666 349 2,084 535 198 503 523 1,759
Cumulative Effect of
Change in Acctng.
Principle (b) - - - - - (680) - - - (680)
----- ----- ----- ----- ------ ----- ----- ----- ----- ------
Net Income 490 579 666 349 2,084 (145) 198 503 523 1,079
========== ===== ===== ===== ===== ====== ===== ===== ===== ===== =====
EARNINGS PER COMMON SHARE
BASED ON: ($) (c)
Oper. Inc. Bef. Spec. Items
and Change in Acctng.
Principle 1.19 1.26 1.50 1.47 5.42 1.31 1.25 1.29 1.61 5.46
Net Income 1.19 1.41 1.63 0.84 5.07 (.40) 0.46 1.23 1.28 2.57
(a) Includes results of Real Estate operations, Mining and Minerals,
administrative expenses, and other corporate items.
(b) Reflects impact of the change in the method of applying the lower of cost
or market test for crude oil and product inventories, recognized
retroactively to January 1, 1994.
(c) The earnings per common share calculation is based on net income, less
preferred stock dividend requirements, divided by the weighted average
number of common shares outstanding.
</TABLE>
<TABLE>
Table 3
MOBIL CORPORATION
<CAPTION>
1993 by Quarter and Year 1994 by Quarter and Year
SPECIAL ITEMS --------------------------- ---------------------------
AFFECTING INCOME 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
($MM) Est Est
---- ----- ---- ----- ----- ---- ----- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
E&P United States
Asset Sales - - - (13) (13) - - - (21) (21)
Restructuring - (10) - - (10) - - - - -
Environment Prov. - (4) - - (4) - - - - -
Tax Rate Change - - (23) - (23) - - - - -
Inventory Related - - - (19) (19) - - - - -
Prop. Writedowns - - - - - - (143) - (17) (160)
E&P International
Asset Sales - - - 15 15 - - - - -
Tax Related Items - 86 - - 86 - - - - -
Tax Rate Changes - - 90 - 90 - - - - -
Prop. Writedowns - - - - - - (42) (16) - (58)
Restructuring - - - - - - - (9) - (9)
M&R United States
Environment Prov. - (108) - (36) (144) - - - - -
Restructuring - (23) - - (23) - - - (11) (11)
LIFO/Oth. Inv. Ad - - - 22 22 - - - 14 14
Prop. Writedowns - - - - - - (35) - - (35)
M&R International
Asset Sales - - - 35 35 - - - - -
Restructuring - (8) (11) (24) (43) - - - (44) (44)
Tax Rate Changes - - 20 - 20 - - - - -
Inventory Adj. - - - (250) (250) - - - - -
Chemical
Restructuring - - - - - - (115) - - (115)
Environment Prov. - - - - - - - - (7) (7)
Corp/Other
Claim Settlement - - (14) 10 (4) - - - - -
Restructuring - - (2) (30) (32) - 20 - - 20
Prop. Writedowns - - - (15) (15) - - - (46) (46)
Net Financing
Int. on Tax Items - 127 (7) 39 159 - - - - -
Fgn. Exchange Adj - - - 13 13 - - - - -
---- ----- ---- ----- ----- ---- ----- ---- ----- -----
Total - 60 53 (253) (140) - (315) (25) (132) (472)
==== ===== ==== ===== ===== ==== ===== ==== ===== =====
</TABLE>
<TABLE>
Table 4
MOBIL CORPORATION
<CAPTION>
Fourth Quarter Twelve Months
----------------------- -----------------------
CAPITAL AND EXPLORATION 1993 1994 Incr/ 1993 1994 Incr/
EXPENDITURES ($MM) Act Est (Decr) Act Est (Decr)
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Petroleum Operations
E&P: U.S.
Exploration Expenses 31 37 6 65 114 49
Other Expenditures 134 127 (7) 427 484 57
------- ------- ------- ------- ------- -------
Total E&P--U.S. 165 164 (1) 492 598 106
Int'l
Exploration Expenses 124 129 5 340 394 54
Other Expenditures 296 356 60 1,133 1,179 46
------- ------- ------- ------- ------- -------
Total E&P--Int'l 420 485 65 1,473 1,573 100
------- ------- ------- ------- ------- -------
Total E&P 585 649 64 1,965 2,171 206
M&R: U.S. 130 193 63 575 567 (8)
Int'l 175 223 48 687 711 24
------- ------- ------- ------- ------- -------
Total M&R 305 416 111 1,262 1,278 16
------- ------- ------- ------- ------- -------
Total Petroleum 890 1,065 175 3,227 3,449 222
Chemical 86 59 (27) 312 218 (94)
Other 28 40 12 117 163 46
------- ------- ------- ------- ------- -------
Total Mobil Corp. 1,004 1,164 160 3,656 3,830 174
======= ======= ======= ======= ======= =======
OTHER FINANCIAL DATA ($MM)
Total Revenues 16,799 18,892 2,093 63,975 67,111 3,136
Income Taxes 394 440 46 1,931 1,945(a) 14
AVERAGE U.S. PRICES
Crude ($/BBL) 11.62 14.00 2.38 13.54 12.90 (0.64)
NGL ($/BBL) 9.95 11.23 1.28 11.25 10.37 (0.88)
Natural Gas ($/MCF) 2.28 1.62 (0.66) 2.22 1.87 (0.35)
AVERAGE INT'L. PRICES
Crude ($/BBL) 15.22 16.36 1.14 16.99 15.66 (1.33)
Natural Gas ($/MCF) 2.58 2.45 (0.13) 2.62 2.44 (0.18)
(a) Excludes income taxes attributable to change in accounting principle
related to foreign inventories.
</TABLE>
<TABLE>
Table 5
MOBIL CORPORATION
<CAPTION>
Fourth Quarter Twelve Months
-------------------- --------------------
1993 1994 Incr/ 1993 1994 Incr/
Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
NET PRODUCTION OF LIQUIDS (TBD)
<S> <C> <C> <C> <C> <C> <C>
United States 309 307 (2) 305 299 (6)
Canada 61 59 (2) 58 57 (1)
Indonesia 89 70 (19) 90 77 (13)
Nigeria 177 177 - 169 175 6
Norway 99 92 (7) 95 95 -
United Kingdom 70 78 8 58 69 11
Other 60 83 23 63 80 17
------ ------ ------ ------ ------ ------
Total International 556 559 3 533 553 20
------ ------ ------ ------ ------ ------
Worldwide 865 866 1 838 852 14
====== ====== ====== ====== ====== ======
NET PRODUCTION OF NATURAL GAS (MMCFD)
United States 1,505 1,553 48 1,529 1,567 38
Canada 489 485 (4) 492 461 (31)
Germany 448 398 (50) 362 372 10
Indonesia 1,662 1,700 38 1,658 1,653 (5)
United Kingdom 567 578 11 390 470 80
Other 184 201 17 179 162 (17)
------ ------ ------ ------ ------ ------
Total International 3,350 3,362 12 3,081 3,118 37
------ ------ ------ ------ ------ ------
Worldwide 4,855 4,915 60 4,610 4,685 75
====== ====== ====== ====== ====== ======
TOTAL NET
PRODUCTION (TBDOE) 1,728 1,740 12 1,657 1,685 28
====== ====== ====== ====== ====== ======
NATURAL GAS SALES (MMCFD)
United States
Equity 1,711 1,975 264 1,784 1,947 163
Resale 804 1,215 411 623 878 255
------ ------ ------ ------ ------ ------
Total United States 2,515 3,190 675 2,407 2,825 418
International 3,423 3,579 156 3,017 3,140 123
------ ------ ------ ------ ------ ------
Worldwide 5,938 6,769 831 5,424 5,965 541
====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
Table 6
MOBIL CORPORATION OPERATING HIGHLIGHTS
<CAPTION>
Fourth Quarter Twelve Months
-------------------- --------------------
1993 1994 Incr/ 1993 1994 Incr/
Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
REFINERY RUNS (TBD)
Runs for and by Mobil
United States 879 874 (5) 836 857 21
Europe 462 417 (45) 446 420 (26)
Pacific Rim 625 622 (3) 607 622 15
All Other 164 156 (8) 163 163 -
------ ------ ------ ------ ------ ------
Total 2,130 2,069 (61) 2,052 2,062 10
Runs for Mobil by Others 20 16 (4) 20 20 -
------ ------ ------ ------ ------ ------
Total Runs for Mobil 2,150 2,085 (65) 2,072 2,082 10
Refinery Runs by Mobil
for Others 27 13 (14) 28 12 (16)
------ ------ ------ ------ ------ ------
Worldwide 2,177 2,098 (79) 2,100 2,094 (6)
====== ====== ====== ====== ====== ======
PETROLEUM PRODUCT SALES (TBD)
United States
Automotive Gasoline
Sales to Trade 517 526 9 512 522 10
Supply/Other Sales 136 198 62 110 155 45
------ ------ ------ ------ ------ ------
Total Automotive Sales 653 724 71 622 677 55
Distillates/Jet Fuel 343 313 (30) 282 288 6
Other 200 224 24 176 201 25
------ ------ ------ ------ ------ ------
Total United States 1,196 1,261 65 1,080 1,166 86
Europe 852 888 36 810 805 (5)
Pacific Rim 775 823 48 730 777 47
All Other 331 358 27 314 327 13
------ ------ ------ ------ ------ ------
Worldwide 3,154 3,330 176 2,934 3,075 141
====== ====== ====== ====== ====== ======
U.S. CHEMICAL PRODUCTION (MM LBS)
Polyethylene 405 415 10 1,657 1,695 38
CHEMICAL SALES BY PRODUCT CATEGORY ($MM)
Petrochemicals 388 663 275 1,608 2,103 495
Plastics 429 500 71 1,719 1,848 129
Chemical Products 23 29 6 81 101 20
------ ------ ------ ------ ------ ------
Total 840 1,192 352 3,408 4,052 644
====== ====== ====== ====== ====== ======
CONTACT: John Lord, (703) 846-2500
</TABLE>
