_________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 10-Q
QUARTERLY REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
Commission file number 1-7555
MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 13-2850309
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3225 Gallows Road, Fairfax, VA. 22037-0001
(Address of principal executive offices) (Zip Code)
(703) 846-3000
Registrant's telephone number
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X . No .
The number of shares outstanding of the registrant's common
stock, all of which comprise a single class with a $2.00 par
value, as of October 31, 1995, the latest practicable date, was
394,473,245.
_________________________________________________________________
<PAGE>
MOBIL CORPORATION
Form 10-Q
Quarterly Report
September 30, 1995
TABLE OF CONTENTS
________________________________________________________________
PART I - FINANCIAL INFORMATION Page
Item 1. Condensed Consolidated Financial Statements
Consolidated Statement of Income for the
Three and Nine Months Ended
September 30, 1994 and 1995 .................. 1
Consolidated Balance Sheet at December 31,
1994 and September 30, 1995 .................. 2
Consolidated Statement of Cash Flows for the
Nine Months Ended September 30, 1994 and 1995. 3
Notes to Condensed Consolidated Financial
Statements ................................... 4
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition .......... 6
Summarized Financial Data
Mobil Oil Corporation .......................... 15
PART II - OTHER INFORMATION
Item 1. Legal Proceedings ................................ 16
Item 2. Changes in Securities ............................ 17
Item 3. Defaults Upon Senior Securities .................. 17
Item 4. Submission of Matters to a Vote of Security
Holders ........................................ 17
Item 5. Other Information ................................ 17
Item 6. Exhibits and Reports on Form 8-K ................. 17
SIGNATURE .................................................. 19
EXHIBIT INDEX .............................................. 20
Exhibit 11. Computation of Earnings per Common Share ..... 21
Exhibit 12. Computation of Ratio of Earnings to Fixed
Charges .................................... 23
________________________________________________________________
<PAGE>
PART I - FINANCIAL INFORMATION
<TABLE>
Item 1. Condensed Consolidated Financial Statements
MOBIL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per-share amounts)
<CAPTION>
For the Three Months | For the Nine Months
Ended September 30, | Ended September 30,
____________________ | ___________________
|
1994 1995 | 1994 1995
_______ _______ | _______ _______
<S> <C> <C> <C> <C>
Revenues |
Sales and services (a) ................... $16,739 $18,267 | $47,734 $54,369
Income from equity investments, asset |
sales, interest and other .............. 147 370 | 485 744
------- ------- | ------- -------
|
Total Revenues ......................... 16,886 18,637 | 48,219 55,113
------- ------- | ------- -------
Costs and Expenses |
Crude oil, products and operating |
supplies and expenses .................. 9,137 10,172 | 26,071 30,773
Exploration expenses ..................... 152 102 | 342 276
Selling and general expenses ............. 1,355 1,274 | 3,948 4,398
Depreciation, depletion and amortization . 673 688 | 2,375 2,225
Interest and debt discount expense ....... 101 119 | 356 351
Taxes other than income taxes (a) ........ 4,404 4,880 | 12,386 13,878
Income taxes ............................. 561 616 | 1,505 1,611
------- ------- | ------- -------
Total Costs and Expenses ............... 16,383 17,851 | 46,983 53,512
------- ------- | ------- -------
|
Income Before Change in Accounting |
Principle ................................ 503 786 | 1,236 1,601
Cumulative Effect of Change in Accounting |
Principle (c) ............................ - - | (680) -
------- ------- | ------- -------
Net Income ................................. $ 503 $ 786 | $ 556 $ 1,601
======= ======= | ======= =======
|
Income Per Common Share |
Income before change in accounting |
principle (b) .......................... $ 1.23 $ 1.95 | $ 3.00 $ 3.94
Cumulative effect of change in accounting |
principle (c) .......................... - - | (1.71) -
------- ------- | ------- -------
Net Income Per Common Share ................ $ 1.23 $ 1.95 | $ 1.29 $ 3.94
======= ======= | ======= =======
|
Dividends Per Common Share ................. $ .85 $ .925 | $ 2.55 $ 2.70
======= ======= | ======= =======
|
|
|
Notes: |
|
(a) Includes excise and state gasoline |
taxes of ............................. $ 1,905 $ 2,202 | $ 5,492 $ 6,248
|
(b) Based on income before change in |
accounting principle less preferred |
stock dividend requirements of ....... $ 14 $ 14 | $ 43 $ 42
divided by the weighted average |
number of common shares outstanding |
(000's) of ........................... 398,109 395,536 | 398,266 395,726
(c) Reflects adoption, effective January 1, 1994, of a change in the accounting
method used to apply the lower of cost or market test for crude oil and
product inventories.
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
MOBIL - 1 -
<PAGE>
<TABLE>
MOBIL CORPORATION
CONSOLIDATED BALANCE SHEET
(In millions)
<CAPTION>
Dec. 31, Sept. 30,
ASSETS 1994 1995
_______ ________
<S> <C> <C>
Current Assets
Cash and cash equivalents ................................ $ 531 $ 597
Accounts and notes receivable ............................ 6,535 6,630
Inventories .............................................. 3,302 3,506
Prepaid expenses and other current assets ................ 618 711
Deferred income taxes .................................... 195 280
------- -------
Total Current Assets ................................... 11,181 11,724
Investments and Long-Term Receivables ...................... 3,802 4,062
Properties, Plants and Equipment ........................... 53,788 55,611
Less: Accumulated Depreciation, Depletion and Amortization . 28,285 29,692
------- -------
Net Properties, Plants and Equipment ....................... 25,503 25,919
Deferred Charges and Other Assets .......................... 1,056 1,146
------- -------
Total Assets ........................................... $41,542 $42,851
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt .......................................... $ 3,013 $ 2,994
Accounts payable ......................................... 4,968 4,843
Accrued liabilities ...................................... 2,659 2,960
Income, excise, state gasoline and other taxes payable ... 2,531 2,772
Deferred income taxes .................................... 247 129
------- -------
Total Current Liabilities .............................. 13,418 13,698
Long-Term Debt ............................................. 4,714 4,793
Reserves for Employee Benefits ............................. 1,520 1,588
Accrued Restoration, Removal and Environmental Costs ....... 1,191 1,216
Deferred Credits and Other Noncurrent Obligations .......... 841 801
Deferred Income Taxes ...................................... 2,639 2,887
Minority Interest in Subsidiary Companies .................. 73 95
------- -------
Total Liabilities ...................................... 24,396 25,078
------- -------
Shareholders' Equity
Preferred stock (ESOP-related) -- shares issued and
outstanding: 95,778 at December 31, 1994 and
93,693 at September 30, 1995............................ 745 728
Unearned employee compensation (ESOP-related) ............ (472) (428)
Common stock -- $2.00 par value; shares authorized:
600,000,000; shares issued: 442,336,317 at December 31,
1994 and 443,525,037 at September 30, 1995.............. 885 887
Capital surplus .......................................... 1,325 1,379
Earnings retained in the business ........................ 16,859 17,349
Cumulative foreign exchange translation adjustment ....... (123) 114
Common stock held in treasury, at cost -- shares:
46,349,300 at December 31, 1994 and 48,302,800 at
September 30, 1995 ..................................... (2,073) (2,256)
------- -------
Total Shareholders' Equity ............................. 17,146 17,773
------- -------
Total Liabilities and Shareholders' Equity ................. $41,542 $42,851
======= =======
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
MOBIL - 2 -
<PAGE>
<TABLE>
MOBIL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
<CAPTION>
For the Nine Months
Ended September 30,
___________________
1994 1995
_______ _______
<S> <C> <C>
Cash Flows from Operating Activities
Net Income ......................................... $ 556 $ 1,601
Adjustments to reconcile to net cash from
operating activities:
Cumulative effect of change in accounting
principle .................................... 680 -
Depreciation, depletion and amortization ....... 2,375 2,225
Deferred income taxes .......................... (212) (41)
Earnings less (greater) than dividends from
equity affiliates ............................ 28 (27)
Exploration expenses (includes noncash
charges: 1994-$28; 1995-$20) ................ 342 276
Gain on sales of properties, plants and
equipment and other assets ................... (80) (34)
Decrease in working capital items .............. 174 6
Other, net ..................................... (32) 7
------- -------
Net Cash from Operating Activities ................... 3,831 4,013
------- -------
Cash Flows from Investing Activities
Capital and exploration expenditures ............... (2,666) (2,897)
Proceeds from sales of properties, plants and
equipment and other assets ....................... 212 266
Payments attributable to investments and
long-term receivables ............................ (102) (76)
------- -------
Net Cash Used in Investing Activities ................ (2,556) (2,707)
------- -------
Cash Flows from Financing Activities
Cash dividends ..................................... (1,059) (1,111)
Proceeds from borrowings having original
terms greater than three months .................. 863 1,493
Repayments of borrowings having original
terms greater than three months .................. (1,788) (1,248)
Increase (decrease) in other borrowings ............ 755 (201)
Proceeds from issuance of common stock ............. 38 56
Purchase of common stock for treasury .............. (124) (183)
------- -------
Net Cash Used in Financing Activities ................ (1,315) (1,194)
------- -------
Effect of Exchange Rate Changes on Cash and
Cash Equivalents ................................... 52 (46)
------- -------
Net Increase in Cash and Cash Equivalents ............ 12 66
Cash and Cash Equivalents - Beginning of Period ...... 827 531
------- -------
Cash and Cash Equivalents - End of Period ............ $ 839 $ 597
======= =======
_______________________________________________________________________________
Memo item
Net cash from operating activities .................. $ 3,831 $ 4,013
Net cash used in investing activities ............... (2,556) (2,707)
Cash dividends ...................................... (1,059) (1,111)
------- -------
Excess of cash from operating activities
over investing activities and dividends ........... $ 216 $ 195
======= =======
______________________________________________________________________________
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
MOBIL - 3 -
<PAGE>
MOBIL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Financial Statements
The condensed consolidated financial statements of Mobil Corporation (Mobil)
included herein are unaudited and have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission (SEC). Although certain
information normally included in financial statements prepared in accordance
with generally accepted accounting principles has been condensed or omitted,
Mobil believes that the disclosures are adequate to make the information
presented not misleading. The condensed consolidated financial statements
should be read in conjunction with the consolidated financial statements, the
notes thereto and the financial statement schedules included or incorporated
by reference in Mobil's Annual Report on Form 10-K for its fiscal year ended
December 31, 1994.
The condensed consolidated financial statements included herein reflect all
normal recurring adjustments that, in the opinion of management, are necessary
for a fair presentation. The results for interim periods are not necessarily
indicative of trends or of results to be expected for a full year.
2. Change in Accounting Principle
Effective January 1, 1994, Mobil changed the method of accounting it uses
to apply the lower of cost or market (LCM) test for its crude oil and product
inventories. The LCM test is now measured, and the results are recognized
separately, on a country-by-country basis, and any resulting writedowns to
market are recorded as permanent adjustments to the last-in, first-out (LIFO)
cost of inventory in accordance with Accounting Research Bulletin No. 43,
Chapter 4, "Inventory Pricing". Previously, Mobil aggregated its worldwide
inventories into one pool for the determination of the LCM measurement. The
$680 million after-tax charge to 1994 first quarter net income represents the
cumulative effect of this accounting change as of January 1, 1994. The new
method of applying the LCM test to the book value of inventories is preferable
because Mobil's financial statements will better reflect local market
conditions and exchange rates in the countries in which Mobil operates.
3. Restructurings
During the second quarter of 1995, Mobil announced three major restructuring
programs affecting worldwide staff support services, United States (U.S.)
downstream businesses, and European refining operations. The implementation
of these three programs will result in the elimination of approximately 5,200
positions and the closure of certain facilities, the costs of which are
expected to total $789 million ($505 million after-tax), which was charged to
second quarter 1995 income. Of the total pre-tax amount, $575 million was
charged to selling and general expenses, primarily related to employee
separation benefits and facility shutdown expenses. The remaining $214
million related to asset writedowns and was charged to depreciation,
depletion, and amortization.
MOBIL - 4 -
<PAGE>
4. Supplementary Cash Flow Data
The table below details the components of the line "Decrease in working
capital items" which is shown in the Consolidated Statement of Cash Flows on
page 3. The impact of changes in foreign currency translation rates has been
removed from these amounts. Therefore, these amounts do not agree with the
differences that could be derived from the Consolidated Balance Sheet amounts
shown on page 2.
<TABLE>
<CAPTION>
______________________________________________________________________
(In millions) For the Nine Months
Ended September 30,
____________________
1994 1995
_____ _____
<S> <C> <C>
Changes in Working Capital Items
(Increases)/decreases
Accounts and notes receivable ................. $(387) $ (85)
Inventories ................................... (302) (174)
Prepaid expenses and other current assets ..... (158) (80)
Accounts payable .............................. 371 (129)
Accrued liabilities ........................... 291 283
Income, excise, state gasoline and
other taxes payable ......................... 359 191
----- -----
Decrease in working capital items ............. $ 174 $ 6
===== =====
______________________________________________________________________
</TABLE>
MOBIL - 5 -
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition.
<TABLE>
RESULTS OF OPERATIONS
__________________________________________________________________________________
|<CAPTION> |
| REPORTED EARNINGS Third Quarter First Nine Months |
| (In millions) ______________ Incr./ _________________ Incr./ |
| 1994 1995 (Decr.) 1994 1995 (Decr.) |
| _____ _____ _____ ______ ______ ______ |
<S> <C> <C> <C> <C> <C> <C>
| Petroleum Operations |
| E&P - United States ........... $ 92 $ 46 $ (46) | $ 105 $ 185 $ 80 |
| - International ........... 192 256 64 | 664 792 128 |
| ----- ----- ----- | ------ ------ ------ |
| Total E&P ..................... 284 302 18 | 769 977 208 |
| ----- ----- ----- | ------ ------ ------ |
| M&R - United States ........... 84 148 64 | 184 131 (53) |
| - International ........... 150 200 50 | 475 231 (244) |
| ----- ----- ----- | ------ ------ ------ |
| Total M&R ..................... 234 348 114 | 659 362 (297) |
| ----- ----- ----- | ------ ------ ------ |
| Total Petroleum ................. 518 650 132 | 1,428 1,339 (89) |
| | |
| Chemical ........................ 60 179 119 | (1) 523 524 |
| Corporate and Other (a) ......... (12) 34 46 | (36) (46) (10) |
| Net Financing Expense ........... (63) (77) (14) | (155) (215) (60) |
| ----- ----- ----- | ------ ------ ------ |
| Income Before Change in | |
| Accounting Principle .......... 503 786 283 | 1,236 1,601 365 |
| Cumulative Effect of Change in | |
| Accounting Principle (b)....... - - - | (680) - 680 |
| ----- ----- ----- | ------ ------ ------ |
| Net Income ...................... $ 503 $ 786 $ 283 | $ 556 $1,601 $1,045 |
| ===== ===== ===== | ====== ====== ====== |
|__________________________________________________________________________________|
| |
| OPERATING EARNINGS Third Quarter First Nine Months |
| (Adjusted for Special Items) ______________ Incr./ _________________ Incr./|
| (In millions) 1994 1995 (Decr.) 1994 1995 (Decr.)|
| _____ _____ _____ ______ ______ ______ |
| Petroleum Operations | |
| E&P - United States ........... $ 92 $ 46 $ (46) | $ 248 $ 237 $ (11) |
| - International ........... 217 256 39 | 731 817 86 |
| ----- ----- ----- | ------ ------ ------ |
| Total E&P ..................... 309 302 (7) | 979 1,054 75 |
| ----- ----- ----- | ------ ------ ------ |
| M&R - United States ........... 84 148 64 | 219 235 16 |
| - International ........... 150 229 79 | 475 528 53 |
| ----- ----- ----- | ------ ------ ------ |
| Total M&R ..................... 234 377 143 | 694 763 69 |
| ----- ----- ----- | ------ ------ ------ |
| Total Petroleum ................. 543 679 136 | 1,673 1,817 144 |
| | |
| Chemical ........................ 60 179 119 | 114 539 425 |
| Corporate and Other (a) ......... (12) (37) (25) | (56) (55) 1 |
| Net Financing Expense ........... (63) (77) (14) | (155) (215) (60) |
| ----- ----- ----- | ------ ------ ------ |
| Income Excluding Special Items | |
| and Change in Accounting | |
| Principle ..................... 528 744 216 | 1,576 2,086 510 |
| Special Items (table on page 7) . (25) 42 67 | (340) (485) (145) |
| ----- ----- ----- | ------ ------ ------ |
| Income Before Change in | |
| Accounting Principle........... 503 786 283 | 1,236 1,601 365 |
| Cumulative Effect of Change in | |
| Accounting Principle (b)........ - - - | (680) - 680 |
| ----- ----- ----- | ------ ------ ------ |
| Net Income .......................$ 503 $ 786 $ 283 | $ 556 $1,601 $1,045 |
| ===== ===== ===== | ====== ====== ====== |
|__________________________________________________________________________________|
(a) Corporate and Other includes the results from 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, effective January 1, 1994.
</TABLE>
MOBIL - 6 -
<PAGE>
<TABLE>
__________________________________________________________________________________
<CAPTION>
SPECIAL ITEMS Third Quarter First Nine Months
(In millions) ______________ ________________
1994 1995 1994 1995
_____ _____ _____ _____
<S> <C> <C> <C> <C>
|
Restructuring Provisions ........... $ (9) $ - | $(104) $(505)
Asset Sales ........................ - - | - (22)
Asset Writedowns ................... (16) (29) | (236) (29)
Litigation Settlement .............. - 71 | - 71
----- ----- | ----- -----
|
Total Special Items .............. $ (25) $ 42 | $(340) $(485)
===== ===== ===== =====
__________________________________________________________________________________
</TABLE>
<TABLE>
__________________________________________________________________________________
<CAPTION>
REVENUES BY SEGMENT Third Quarter First Nine Months
(In millions) Incr./ Incr./
(Decr.) (Decr.)
1994 1995 % 1994 1995 %
_______ _______ ____ _______ _______ ____
<S> <C> <C> <C> <C> <C> <C>
Exploration & Producing ....... $ 1,492 $ 1,693 13 | $ 4,641 $ 5,268 14
Marketing & Refining .......... 14,178 15,391 9 | 40,290 45,280 12
Chemical ...................... 1,120 1,349 20 | 2,949 4,163 41
Corporate & Other ............. 96 204 113 | 339 402 19
_______ _______ | _______ _______
Total Revenues .............. $16,886 $18,637 10 | $48,219 $55,113 14
======= ======= | ======= =======
__________________________________________________________________________________
</TABLE>
CONSOLIDATED RESULTS OVERVIEW
THIRD QUARTER 1995 COMPARED WITH THIRD QUARTER 1994
Consolidated third quarter reported net income was $786 million, an increase
of $283 million, or 56%, from the $503 million reported for the third quarter
of 1994. Reported earnings per common share for the third quarter of 1995 were
$1.95, compared with $1.23 for the third quarter of 1994. The third quarter of
1995 included net special benefits of $42 million, the result of a favorable
litigation settlement partly offset by a charge for writedown of certain
marketing assets in Australia. Last year's third quarter included special
charges of $25 million for asset rationalization and restructuring in
International E&P. Excluding the special benefits and charges from both
periods, third quarter 1995 operating income of $744 million increased $216
million, or 41%, from the comparable quarter last year.
This quarter's strong improvement in operating income resulted from
significantly higher income in both the downstream petroleum and chemical
sectors. Despite somewhat weaker industry refining margins in most enclaves,
income in both the U.S. and International Marketing and Refining increased
substantially, reflecting a combination of excellent operating performance,
lower expenses, and higher lube income. In the U.S., seasonally high gasoline
demand in the third quarter, which favors our businesses, contributed to
income. Chemical continued to benefit from improved petrochemical industry
conditions, although there was some slippage as the quarter progressed.
Chemical income reflected better operating performance, including lower costs
following last year's restructuring. Exploration and Producing income held
steady, as lower exploration expenses offset lower volumes and significantly
lower natural gas prices in North America and the United Kingdom.
MOBIL - 7 -
<PAGE>
CONSOLIDATED RESULTS OVERVIEW - continued
Throughout the company, Mobil is striving to increase shareholder value by
getting more from existing assets and by making investments for growth. This
quarter, controllable cash operating expenses were down more than $100 million
pre-tax from last year's comparable quarter, reflecting the benefits of ongoing
restructuring and cost reduction programs. This quarter does not include any
significant benefits from the major restructuring programs announced last
quarter. Mobil expects to begin seeing these benefits early in 1996.
To provide for future growth, Mobil continues to take advantage of attractive
opportunities. Announcements made since the beginning of the third quarter
included (1) start of a development plan for the Zafiro complex offshore
Equatorial Guinea; (2) new deep-water production from Garden Banks Block 388,
and streaming of a new, deeper reservoir in the Eugene Island 240 field, both
in the Gulf of Mexico; and (3) development of new paraxylene manufacturing
technologies which will provide significant cost advantages, complementing
capacity expansions and supporting a long-term objective of becoming the
world s leading paraxylene marketer. In addition, to strengthen our competitive
position, we continue to look closely at all of our assets. We are actively
pursuing opportunities to restructure and acquire or divest assets, with the
objective of maximizing our long term returns.
Market fundamentals in both petroleum and chemicals continue to be uncertain
and volatile and are likely to remain so in the near term. Therefore, to better
cope with these industry conditions, Mobil continues to take steps to improve
productivity, reduce costs, and invest for growth.
Worldwide revenues in the third quarter of 1995 of $18,637 million were
$1,751 million higher than revenues in the third quarter of 1994, reflecting
higher worldwide chemical sales prices and higher U.S. petroleum sales volumes,
slightly offset by the effects of lower worldwide crude oil and natural gas
prices. Crude oil, products and operating supplies and expenses increased by
$1,035 million to $10,172 million due to higher crude and product-related costs
associated with higher worldwide sales volumes. Exploration expenses decreased
$50 million, reflecting reduced activity and a lower cost program, combined
with reduced dry well expenses resulting from greater drilling success than in
the prior year. Selling and general expenses decreased $81 million to $1,274
million, primarily due to overall reduced expenditures partially offset by
currency translation effects. Interest and debt discount expenses increased $18
million to $119 million, principally reflecting higher effective interest
rates. Taxes other than income taxes increased $476 million to $4,880 million
due to higher worldwide sales volumes, currency translation effects and higher
United Kingdom excise tax rates. Income tax expense increased $55 million to
$616 million, largely as a function of higher U.S. pre-tax income.
MOBIL - 8 -
<PAGE>
CONSOLIDATED RESULTS OVERVIEW - continued
FIRST NINE MONTHS 1995 COMPARED WITH FIRST NINE MONTHS 1994
Reported net income for the first nine months of 1995 was $1,601 million,
compared with $1,236 million for the same period of 1994 (excluding from last
year the $680 million non-cash charge for the change in accounting principle
related to inventories). Reported net income per common share for the first
nine months of 1995 was $3.94 compared with $3.00 for the comparable period of
1994 (before the change in accounting principle). Year-to-date 1995 net income
included net special charges of $485 million, primarily for the realignment of
worldwide staff support services and restructuring of marketing and refining
operations in the United States and Europe. Net special charges in the
comparable period of 1994 were $340 million, primarily for North American
property writedowns and Chemical restructuring. Excluding special items and the
accounting change, operating income for the first nine months was $2,086
million, up $510 million, or 32%, from the comparable period of 1994.
The $510 million increase in operating income reflected improvements in all
three core business segments, especially in Chemical, where income has
benefitted from significantly higher worldwide petrochemical margins, as well
as from business initiatives. In Marketing and Refining, lower expenses, higher
volumes, better refinery performance, and higher lube income more than offset
significantly lower worldwide industry refining margins. In Exploration and
Producing, higher worldwide crude oil prices and lower exploration expenses
more than offset lower natural gas prices. In addition, production volumes were
down about 50 thousand barrels per day oil equivalent (TBDOE), reflecting, in
part, adverse weather conditions in the Gulf of Mexico and operational
interruptions in Nigeria. Net Financing Expense increased as a result of higher
average effective interest rates and the absence of certain favorable non-
recurring items reported in last year's results.
Nine month 1995 revenues of $55,113 million were $6,894 million higher than
revenues in the same period of 1994 because of higher worldwide chemical sales
volumes and prices, higher U.S. petroleum sales volumes, and currency
translation effects. Crude oil, products and operating supplies and expenses
increased by $4,702 million to $30,773 million due to increased crude and
product-related costs and higher volumes to support increased sales, mainly in
the U.S. Exploration expenses decreased $66 million to $276 million reflecting
reduced activity and a lower cost program, combined with reduced dry well
expenses resulting from greater drilling success than in the prior year.
Selling and general expenses rose $450 million to $4,398 million, primarily due
to special charges for restructuring initiatives. Depreciation, depletion and
amortization expenses were $150 million lower largely due to asset writedowns
in the second and third quarters of 1994 exceeding asset writedowns in 1995
which mainly relate to the closure of certain facilities in connection with
various restructuring programs. Taxes other than income taxes increased $1,492
million to $13,878 million due to higher U.S. sales volumes, currency
translation effects and higher United Kingdom excise tax rates. Income tax
expense increased $106 million over the prior year largely as a function of
higher U.S. pre-tax income.
MOBIL - 9 -
<PAGE>
Exploration and Producing
<TABLE>
_________________________________________________________________________________
<CAPTION>
Exploration and Producing Third Quarter First Nine Months
Selected Operating Data Incr./ Incr./
(Decr.) (Decr.)
1994 1995 Vol. % 1994 1995 Vol. %
_____ _____ ___ __ _____ _____ ______ __
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Crude Oil and NGL |
Production (TBD) - U.S. 305 278 (27) (9) | 297 285 (12) (4)
- Intl. 534 533 (1) - | 550 523 (27) (5)
----- ----- --- | ----- ----- -----
Total .................. 839 811 (28) (3) | 847 808 (39) (5)
===== ===== === | ===== ===== =====
Net Natural Gas |
Production (MMCFD) - U.S. 1,583 1,417 (166)(10) | 1,572 1,479 (93) (6)
- Intl. 2,721 2,677 (44) (2) | 3,036 3,055 19 1
----- ----- --- | ----- ----- -----
Total .................. 4,304 4,094 (210) (5) | 4,608 4,534 (74) (2)
===== ===== === | ===== ===== =====
Natural Gas Sales |
(MMCFD) - U.S. 2,735 3,412 677 25 | 2,702 3,529 827 31
- Intl. 2,542 2,838 296 12 | 2,993 3,167 174 6
----- ----- --- | ----- ----- -----
Total .................. 5,277 6,250 973 18 | 5,695 6,696 1,001 18
===== ===== === | ===== ===== =====
_________________________________________________________________________________
</TABLE>
THIRD QUARTER 1995 COMPARED WITH THIRD QUARTER 1994
Exploration and Producing reported net income of $302 million was $18 million
higher than the third quarter of 1994. Last year's third quarter included
special items of $25 million for property writedowns and restructuring. There
were no special items in the current year third quarter. Excluding special
items, operating income of $302 million was $7 million lower than last year.
In the United States, 1995 third quarter operating income was $46 million,
down $46 million. Significantly lower natural gas prices and lower volumes,
in part due to weather disturbances in the Gulf of Mexico and natural field
declines, were partly offset by lower exploration expense.
International operating income for the third quarter of 1995 was $256 million,
up $39 million from last year. Lower exploration expenses and higher natural gas
sales were partially offset by lower natural gas prices in Canada and the United
Kingdom and by lower crude oil prices.
FIRST NINE MONTHS 1995 COMPARED WITH FIRST NINE MONTHS 1994
Exploration and Producing reported net income of $977 million was $208 million
higher than last year. The first nine months of 1995 included special charges of
$55 million for restructuring and $22 million for losses on U.S. asset sales.
The comparable period in 1994 included special charges of $9 million for
restructuring and $201 million for property writedowns. Excluding the special
charges from both periods, operating income of $1,054 million was up $75 million
(8%) from 1994. Higher worldwide crude oil prices and lower exploration expenses
more than offset lower natural gas prices and lower production volumes. Volumes
were down about 50 TBDOE, reflecting, in part, adverse weather conditions in the
Gulf of Mexico and operational interruptions in Nigeria.
MOBIL - 10 -
<PAGE>
Marketing and Refining
<TABLE>
__________________________________________________________________________________
<CAPTION>
Marketing and Refining Third Quarter First Nine Months
Selected Operating Data Incr./ Incr./
(Decr.) (Decr.)
1994 1995 Vol. % 1994 1995 Vol. %
_____ _____ ___ __ _____ _____ ___ __
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Petroleum Product
Sales (TBD)(a) - U.S. 1,126 1,285 159 14 | 1,133 1,266 133 12
- Intl. 1,876 1,910 34 2 | 1,866 1,885 19 1
----- ----- --- | ----- ----- ---
Total .................. 3,002 3,195 193 6 | 2,999 3,151 152 5
===== ===== === | ===== ===== ===
|
Refinery Runs (TBD) - U.S. 852 902 50 6 | 852 897 45 5
- Intl. 1,272 1,225 (47) (4)| 1,227 1,231 4 -
----- ----- --- | ----- ----- ---
Total .................. 2,124 2,127 3 - | 2,079 2,128 49 2
===== ===== === | ===== ===== ===
(a) includes supply/other sales
__________________________________________________________________________________
</TABLE>
THIRD QUARTER 1995 COMPARED WITH THIRD QUARTER 1994
Marketing and Refining reported net income of $348 million was $114 million
higher than the third quarter of 1994. The current quarter included $29 million
for property writedowns in Australia. There were no special items in the prior
year third quarter. Excluding special items, operating income of $377 million
for the third quarter of 1995 was $143 million higher than in the previous
year.
Operating income in the United States was $148 million, up $64 million,
reflecting lower expenses driven by ongoing business initiatives, higher fuels
sales volumes, and increased lube income. In addition, income was helped by
strong operating performance, high refinery throughput, and record gasoline
production.
International operating income was $229 million, up $79 million from the
third quarter of 1994. Income benefitted from ongoing business initiatives,
primarily expense savings in Europe and Australia, and from the increased
contribution from the Singapore refinery upgrade. These improvements more than
offset generally weaker refining margins in most enclaves and lower marketing
margins in Japan.
FIRST NINE MONTHS 1995 COMPARED WITH FIRST NINE MONTHS 1994
Marketing and Refining reported net income was $362 million, $297 million
lower than the comparable period last year. The first nine months of 1995
included special charges of $372 million for restructuring and $29 million for
property writedowns. The comparable period in 1994 included special charges of
$35 million for property writedowns. Excluding the special charges from both
periods, operating income of $763 million was $69 million higher than last
year. Lower expenses, higher volumes, better refinery performance, and higher
lube income more than offset significantly lower worldwide industry refining
margins.
MOBIL - 11 -
<PAGE>
Chemical
THIRD QUARTER AND FIRST NINE MONTH COMPARISONS OF 1995 WITH 1994
Chemical reported and operating net income of $179 million for the third
quarter of 1995 was up $119 million from the third quarter of 1994, reflecting
better worldwide margins on polyethylene resin, as well as paraxylene from the
Singapore petrochemicals complex. Ongoing business initiatives and benefits
from restructuring also contributed to the improvement.
In the first nine months of 1995, Chemical net income was $523 million,
compared with a loss of $1 million in the same period last year. Excluding the
special charges for restructuring ($16 million in 1995 and $115 million in
1994), Chemical operating income of $539 million was $425 million higher than
in the previous year. Operating income in 1995 benefitted from significantly
higher worldwide petrochemical margins, as well as from business initiatives.
Corporate and Other
THIRD QUARTER AND FIRST NINE MONTH COMPARISONS OF 1995 WITH 1994
Corporate and Other showed an improvement of $46 million in the third quarter
of 1995 over the third quarter of the prior year. This year's third quarter net
income of $34 million included a special benefit of $71 million in settlement
of a patent infringement litigation. There were no special items in the third
quarter of 1994. Excluding special items, Corporate and Other expense of $37
million for the third quarter of 1995 was $25 million higher than the third
quarter of the prior year, mainly due to costs associated with the design and
implementation of our worldwide staff support services organization.
For the first nine months of 1995, Corporate and Other expense was $46
million compared to $36 million in the prior year. The first nine months of
1995 included special charges of $62 million for restructuring and the $71
million benefit from the litigation settlement noted above. The comparable
period in 1994 included a reclassification adjustment to restructuring charges
of $20 million. Excluding the special charges from both periods, Corporate and
Other expense was essentially flat with the prior year.
Net Financing Expense
THIRD QUARTER AND FIRST NINE MONTH COMPARISONS OF 1995 WITH 1994
Net Financing Expense of $77 million for the third quarter of 1995 was $14
million higher than the third quarter of the prior year, principally reflecting
higher average effective interest rates.
For the first nine months of 1995, Net Financing Expense was $215 million, up
$60 million from the previous year, as a result of higher average effective
interest rates and the absence of certain favorable nonrecurring items reported
in last year's results.
MOBIL - 12 -
<PAGE>
Accounting Standards
In March, 1995, Financial Accounting Standard (FAS) 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,
was issued. Adoption of this standard is required in the first quarter of 1996,
although earlier adoption is encouraged. The new standard requires assets that
are deemed to be impaired be reported at fair value. Mobil is currently
reviewing the impact of FAS 121 and plans to adopt the new standard in the
fourth quarter. Adoption is likely to result in a writedown, a non-cash charge,
which will not impact liquidity.
DISCUSSION OF FINANCIAL CONDITION
At September 30, 1995, total current assets of $11,724 million were
$543 million higher than at year-end 1994. Included in the increase were higher
petroleum products and chemical inventories.
Investments and long-term receivables increased $260 million, primarily due
to currency translation effects and continuing investment in Qatar LNG
projects.
Net properties, plants and equipment increased $416 million to $25,919
million. Capital expenditures and currency translation effects more than offset
depreciation, asset sales and retirements.
Total current liabilities of $13,698 million at September 30, 1995 increased
$280 million from year-end 1994. This increase primarily reflects provision for
restructuring initiatives, currency translation effects, higher taxes payable
associated with increased income and sales volumes, partly offset by a seasonal
decrease in product purchases and timing of certain payments and accruals.
Total debt of Mobil and its subsidiaries was $7,787 million at September 30,
1995, up $60 million from year-end 1994. The debt-to-capitalization ratio was
30% at September 30, 1995, compared with 31% at year-end 1994.
Shareholders' equity rose $627 million during the first nine months of 1995,
primarily due to an increase of $490 million in earnings retained in the
business at September 30, 1995, reflecting net income of $1,601 million less
dividends of $1,111 million.
During the first nine months of 1995, net cash generated from operating
activities was $4,013 million, $195 million more than the cash requirements for
investing activities and dividends. (Refer to table on page 3.)
MOBIL - 13 -
<PAGE>
DISCUSSION OF FINANCIAL CONDITION - continued
Capital and Exploration Expenditures for the third quarter of 1995 were
$1,119 million, an increase of $118 million from the comparable period last
year. For the first nine months of 1995, worldwide capital and exploration
expenditures were $2,897 million, compared with $2,666 million for the year-
earlier period.
<TABLE>
____________________________________________________________________________
<CAPTION>
CAPITAL AND EXPLORATION
EXPENDITURES Third Quarter First Nine Months
(In millions)
1994 1995 1994 1995
______ ______ ______ ______
<S> <C> <C> <C> <C>
Petroleum Operations |
Exploration & Producing - U.S. ... $ 117 $ 279 | $ 357 $ 524
- Intl. .. 342 384 | 823 1,044
Marketing & Refining - U.S. ... 133 94 | 374 333
- Intl. .. 183 178 | 488 502
Chemical ........................... 40 63 | 159 155
Corporate & Other .................. 34 19 | 123 63
------ ------ | ------ ------
Total Capital Expenditures ..... 849 1,017 | 2,324 2,621
|
Exploration Expenses - U.S. ... 40 27 | 77 53
- Intl. .. 112 75 | 265 223
------ ------ | ------ ------
Total Exploration Expenses ..... 152 102 | 342 276
------ ------ | ------ ------
Total Capital and |
Exploration Expenditures ... $1,001 $1,119 | $2,666 $2,897
====== ====== | ====== ======
____________________________________________________________________________
</TABLE>
Return on average shareholders' equity was 12.2% for the twelve month period
ended September 30, 1995, compared with 10.4% for the calendar year 1994
(excluding the cumulative effect of the change in accounting principle). Return
on average capital employed for the twelve month period ended September 30,
1995 was 9.7%, compared with 8.4% for the calendar year 1994 (excluding the
cumulative effect of the change in accounting principle).
Whenever external financing is needed, Mobil and its subsidiary companies
have ready access to multiple capital markets, including significant bank
credit lines.
At September 30, 1995, Mobil had effective shelf registration statements on
file with the SEC permitting the offer and sale of $1,815 million of debt
securities. Shelf registrations allowing the issuance of U.S. $811 million of
Euro-Medium-Term Notes and bonds having a principal amount of 30 billion
Japanese yen are also in place.
At September 30, 1995, the Mobil Oil Corporation Employee Stock Ownership
Plan Trust (ESOP Trust) had an effective shelf registration on file with the
SEC permitting the offer and sale of $230 million of debt securities,
guaranteed by Mobil. The proceeds of any debt securities issued by the ESOP
Trust thereunder would be used to refinance its existing indebtedness.
MOBIL - 14 -
<PAGE>
SUMMARIZED FINANCIAL DATA
MOBIL OIL CORPORATION
Summarized financial data for Mobil Oil Corporation, a wholly-owned
subsidiary of Mobil Corporation, follow. Net obligations to Mobil
Corporation amounted to $1,737 million at December 31, 1994, and
$439 million at September 30, 1995.
<TABLE>
________________________________________________________________________
<CAPTION>
(In millions) Dec. 31, Sept. 30,
1994 1995
_______ _______
<S> <C> <C>
Current assets .......................... $12,942 $15,143
Noncurrent assets ....................... 25,006 25,594
Current liabilities ..................... (12,398) (13,091)
Long-term debt .......................... (6,639) (6,970)
Deferred credits and other liabilities .. (4,899) (5,225)
Minority interests, primarily
Mobil Corporation ..................... (1,165) (1,252)
------- -------
Net assets .............................. $12,847 $14,199
======= =======
For the Nine Months
Ended September 30,
____________________
1994 1995
_______ _______
Gross revenues .......................... $45,746 $52,502
Income before taxes and change in
accounting principle .................. $ 1,723 $ 2,188
Income after taxes but before change in
accounting principle .................. $ 694 $ 1,115
Cumulative effect of change in accounting
principle (a).......................... (680) -
Net income .............................. $ 14 $ 1,115
(a) Reflects the adoption, effective January 1, 1994, of a change
in the accounting method used to apply the lower of cost or
market test for crude oil and product inventories.
________________________________________________________________________
</TABLE>
MOBIL - 15 -
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Environmental Litigation.
Mobil periodically receives notices from the Environmental Protection Agency
(EPA) or equivalent agencies at the state level that Mobil is a "potentially
responsible party" under Superfund or equivalent state legislation with respect
to various waste disposal sites. The majority of these sites are either still
under investigation by the EPA or the state agencies concerned, or under
remediation, or both. In certain instances, Mobil and other potentially
responsible parties have been named in court or administrative proceedings by
federal or state agencies seeking the cleanup of these sites. Mobil has also
been named as a defendant in various suits brought by private parties alleging
injury from disposal of wastes at these sites. The ultimate impact of these
proceedings on the business or accounts of Mobil cannot be predicted at this
time due to the large number of other potentially responsible parties and the
speculative nature of cleanup cost estimates, but based on our long experience
in managing environmental matters, we do not anticipate that the aggregate
level of future remediation costs will increase above recent levels so as to
materially and adversely affect our consolidated financial position or
liquidity.
On August 8, 1995, Mobil Oil Corporation received a notice from the EPA
advising of potential violations, at its Chalmette, Louisiana refinery, of
various Clean Air Act requirements and various requirements of the Emergency
Preparedness Community Right to Know Act relating to the submission of forms.
Although the notice did not indicate the amount of any penalty that may be
sought, the potential monetary sanctions are likely to exceed $100,000.
On September 28, 1995, the Department of Justice filed a civil action and a
proposed Consent Order to settle such action in the U.S. District Court for the
Eastern District of Texas alleging and proposing a settlement of EPA claims
that Mobil Chemical Company's Beaumont, Texas plant committed hazardous waste
violations of the Resource Conservation Recovery Act relating to an unpermitted
sandblasting waste pile, asbestos and benzene violations of the Clean Air Act's
National Emission Standards for Hazardous Air Pollutants and various violations
of the Clean Water Act's National Pollutant Discharge Elimination System
standards. The penalties sought in the civil action totaled $1.37 million;
under the proposed Consent Order, these would be settled by the payment of
$250,000. The proposed Consent Order is currently subject to comment by the
public.
The foregoing proceedings are not of material importance in relation to
Mobil's accounts and are described in compliance with SEC rules requiring
disclosure of such proceedings although not material.
Other Than Environmental Litigation.
Mobil and its subsidiaries are engaged in various litigations and have a
number of unresolved claims pending. While the amounts claimed are substantial
and the ultimate liability in respect of such litigations and claims cannot be
determined at this time, Mobil is of the opinion that such liability, to the
extent not provided for through insurance or otherwise, is not likely to be of
material importance in relation to its accounts.
MOBIL - 16 -
<PAGE>
Legal Proceedings - continued
Mobil has provided in its accounts for items and issues not yet resolved
based on management's best judgement.
Mobil announced on August 11, 1995 that it settled several issues with the
United States Internal Revenue Service (IRS), most of which were involved in
litigation in the United States Tax Court. Included among the settled issues is
the so-called "Aramco Advantage" issue. The IRS had asserted that Mobil should
have charged its affiliates higher prices than the prices mandated by Saudi
Arabia for crude that Mobil bought from the Arabian American Oil Company during
the 1979-1981 period. Mobil noted that the settlement will have no effect on
earnings, as the federal tax on the agreed-to increase in taxable income was
covered by excess foreign tax credits. The adjustment to pricing agreed to as a
result of the negotiated settlement is substantially less than originally
claimed by the IRS. Some adjustments will be made to income taxes in individual
states within the United States, but will not impact earnings as reserves are
adequate to cover any increase.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
Mobil announced October 2, 1995 that a definitive agreement had been signed
for the sale of Mobil Chemical Company's Plastics Division, exclusive of Tucker
Housewares, to Tenneco Inc. for $1,270 million. The sale, subject to regulatory
approval, is expected to be completed in the fourth quarter of this year and
will generate net income in excess of $500 million.
Mobil announced November 2, 1995 that an agreement had been reached with the
management of H. Muehlstein and Company, Inc. for an employee buyout of the
wholly-owned subsidiary. The final sales price will be approximately $130
million, essentially the working capital invested in the business. The sale is
expected to be completed by the end of the year, and will have no impact on
income.
Item 6. Exhibits and Reports on Form 8-K.
Exhibits.
The following exhibits are filed with this report:
11. Computation of Earnings Per Common Share
12. Computation of Ratio of Earnings to Fixed Charges
27. Financial Data Schedule
MOBIL - 17 -
<PAGE>
Exhibits and Reports on Form 8-K - continued
Reports on Form 8-K.
Mobil filed the following Form 8-K, Current Reports during and
subsequent to the end of the third quarter:
Date of 8-K Description of 8-K
____________ ________________________________________________________
July 6, 1995 Submitted a copy of the Mobil Corporation By-Laws, as
amended to June 14, 1995.
July 24, 1995 Submitted a copy of the Mobil News Release dated July 24,
1995, reporting estimated earnings for the second quarter
of 1995.
August 10, 1995 Submitted a copy of the Mobil News Release dated
August 10, 1995, announcing the settlement of several
issues with the Internal Revenue Service.
September 1, 1995 Submitted a copy of the Mobil News Release dated
September 1, 1995, announcing the settlement of a lawsuit
brought against Amoco Chemical Company involving the
infringement of Mobil patents.
October 2, 1995 Submitted a copy of the Mobil News Release dated
October 2, 1995, announcing the sale of Mobil Chemical
Company's Plastics Division to Tenneco Inc.
October 23, 1995 Submitted a copy of the Mobil News Release dated
October 23, 1995, reporting estimated earnings for the
third quarter of 1995.
MOBIL - 18 -
<PAGE>
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 thereunto duly authorized.
REGISTRANT MOBIL CORPORATION
BY /S/ROBERT C. MUSSER
_____________________________
NAME AND TITLE Robert C. Musser, Controller;
Principal Accounting Officer
DATE November 7, 1995
MOBIL - 19 -
<PAGE>
EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
- - - ------- ----------------
11. Computation of Earnings Per Electronic
Common Share
12. Computation of Ratio of Earnings Electronic
to Fixed Charges
27. Financial Data Schedule Electronic
MOBIL - 20 -
<TABLE>
Exhibit 11.
MOBIL CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
(In millions of dollars except per-share amounts;
number of shares in thousands)
<CAPTION>
For the Three Months
Ended September 30,
____________________
Primary 1994 1995
_______ ________ ________
<S> <C> <C>
Net income ................................................ $ 503 $ 786
Less dividends on preferred stock ......................... 14 14
-------- --------
Net income applicable to common shares .................... $ 489 $ 772
-------- --------
Weighted average number of primary common shares
Outstanding ............................................. 398,109 395,536
Issuable on assumed exercise of stock options ........... 3,173 4,276
-------- --------
Total ................................................ 401,282 399,812
======== ========
Primary earnings per common share ......................... $ 1.22 $ 1.93
======== ========
Fully Diluted
_____________
Net income ................................................ $ 503 $ 786
Less additional contribution to ESOP ...................... 6 5
Less dividends on preferred stock ......................... - -
-------- --------
Adjusted net income applicable to common shares ........... $ 497 $ 781
======== ========
Weighted average number of primary common shares .......... 401,282 399,812
Increment to assumed exercise of stock options to
reflect maximum dilutive effect ......................... - 166
Assumed conversion of preferred stock ..................... 9,649 9,369
-------- --------
Total ................................................ 410,931 409,347
======== ========
Fully diluted earnings per common share ................... $ 1.21 $ 1.91
======== ========
___________
This Exhibit is included to show that dilution of earnings per common share is
immaterial and therefore not necessary for presentation on the Consolidated
Statement of Income.
</TABLE>
MOBIL - 21 -
<TABLE>
Exhibit 11. (concluded)
MOBIL CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
(In millions, except for per-share amounts;
number of shares in thousands)
<CAPTION>
For the Nine Months
Ended September 30,
Primary 1994 1995
<S> <C> <C>
Income before change in accounting principle .................. $ 1,236 $ 1,601
Less dividends on preferred stock ............................. 43 42
-------- --------
Adjusted income applicable to common shares before
change in accounting principle .............................. $ 1,193 $ 1,559
Cumulative effect of change in accounting principle ........... (680) -
-------- --------
Adjusted net income applicable to common shares ............... $ 513 $ 1,559
======== ========
Weighted average number of primary common shares
Outstanding ................................................. 398,266 395,726
Issuable on assumed exercise of stock options ............... 2,960 3,835
-------- ---------
Total ................................................... 401,226 399,561
======= =========
Primary earnings per common share
Income applicable to common shares before change
in accounting principle ................................... $ 2.97 $ 3.90
Cumulative effect of change in accounting principle ......... (1.69) -
-------- --------
Net income per common share ................................... $ 1.28 $ 3.90
======== ========
Fully Diluted
Income before change in accounting principle .................. $ 1,236 $ 1,601
Less additional contribution to ESOP .......................... - (a) 17
Less dividends on preferred stock ............................. 43 (a) -
-------- --------
Adjusted income applicable to common shares before
change in accounting principle .............................. $ 1,193 $ 1,584
Cumulative effect of change in accounting principle ........... (680) -
-------- --------
Adjusted net income applicable to common shares ............... $ 513 $ 1,584
======== ========
Weighted average number of primary common shares .............. 401,226 399,561
Increment to assumed exercise of stock options to
reflect maximum dilutive effect ............................. - 608
Assumed conversion of preferred stock ......................... - (a) 9,369
-------- ---------
Total ................................................... 401,226 409,538
======== =========
Fully diluted earnings per common share
Adjusted income before change in accounting
principle ................................................. $ 2.97 $ 3.87
Cumulative effect of change in accounting principle ......... (1.69) -
-------- ---------
Net income per common share ................................... $ 1.28 $ 3.87
======== =========
___________
This Exhibit is included to show that dilution of earnings per common share is
immaterial and therefore not necessary for presentation on the Consolidated
Statement of Income.
(a) For the nine months ended September 30, 1994, the incremental shares attributable
to the assumed conversion of preferred stock were not considered for the
fully diluted earnings per share calculation due to their antidilutive effect.
</TABLE>
MOBIL - 22 -
<TABLE>
Exhibit 12.
MOBIL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
<CAPTION>
Nine
Months
Ended
Year Ended December 31, Sept. 30,
__________________________________________ ________
1990 1991 1992 1993 1994 1995
______ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Income Before Change in
Accounting Principle(s).. $1,929 $1,920 $1,308 $2,084 $1,759 $1,601
Add:
Income taxes .............. 2,515 2,105 1,567 1,931 1,919 1,611
Portion of rents
representative of
interest factor ......... 342 344 319 339 340 254
Interest and debt
discount expense ........ 700 713 612 529(a) 461 351
Earnings (greater) less
than dividends from
equity affiliates........ (100) (151) 36 265 (40) (27)
------ ------ ------ ------ ------ ------
Income as Adjusted ........ $5,386 $4,931 $3,842 $5,148 $4,439 $3,790
====== ====== ====== ====== ====== ======
Fixed Charges:
Interest and debt
discount expense ........ $ 700 $ 713 $ 612 $ 529(a)$ 461 $ 351
Capitalized interest ...... 7 20 42 42 37 30
Portion of rents
representative of
interest factor ......... 342 344 319 339 340 254
------ ------ ------ ------ ------ ------
Total Fixed Charges ....... $1,049 $1,077 $ 973 $ 910 $ 838 $ 635
====== ====== ====== ====== ====== ======
Ratio of Earnings to
Fixed Charges ........... 5.1 4.6 3.9 5.7(a) 5.3 6.0
====== ====== ====== ====== ====== ======
Note:
For the years ended December 31, 1990, 1991, 1992, 1993, 1994 and the nine
months ended September 30, 1995, Fixed Charges exclude $42 million, $42 million,
$37 million, $31 million, $37 million and $22 million, respectively, of interest
expense attributable to debt issued by the Mobil Oil Corporation Employee Stock
Ownership Plan Trust and guaranteed by Mobil.
(a) Excludes the favorable effect of $205 million of interest benefits from the
resolution of prior-period tax issues.
</TABLE>
MOBIL - 23 -
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> ART. 5 FDS FOR 3RD QUARTER 1995 10-Q
This schedule contains summary financial information extracted from the
September 30, 1995 Form 10-Q, and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<CIK> 0000067182
<NAME> MOBILCORP/ B. Johnson
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 597
<SECURITIES> 0
<RECEIVABLES> 6,630
<ALLOWANCES> 0
<INVENTORY> 3,506
<CURRENT-ASSETS> 11,724
<PP&E> 55,611
<DEPRECIATION> 29,692
<TOTAL-ASSETS> 42,851
<CURRENT-LIABILITIES> 13,698
<BONDS> 4,793
<COMMON> 887
0
728
<OTHER-SE> 16,158
<TOTAL-LIABILITY-AND-EQUITY> 42,851
<SALES> 54,369 <F1>
<TOTAL-REVENUES> 55,113 <F1>
<CGS> 30,773
<TOTAL-COSTS> 32,998
<OTHER-EXPENSES> 14,154
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 351
<INCOME-PRETAX> 3,212
<INCOME-TAX> 1,611
<INCOME-CONTINUING> 1,601
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,601
<EPS-PRIMARY> 3.90
<EPS-DILUTED> 3.87
<FN>
<F1> SALES AND TOTAL REVENUES INCLUDE $6,248 MILLION OF EXCISE
AND STATE GASOLINE TAXES
</FN>
</TABLE>
