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 June 30, 1996
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 July 31, 1996, the
latest practicable date, was 393,873,854.
<PAGE>
MOBIL CORPORATION
Form 10-Q
Quarterly Report
June 30, 1996
TABLE OF CONTENTS
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PART I - FINANCIAL INFORMATION Page
Item 1. Condensed Consolidated Financial Statements
Consolidated Statement of Income for the
Three and Six Months Ended
June 30, 1995 and 1996 ....................... 1
Consolidated Balance Sheet at December 31, 1995
and June 30, 1996 ............................ 2
Consolidated Statement of Cash Flows for the
Six Months Ended June 30, 1995 and 1996 ...... 3
Notes to Condensed Consolidated Financial
Statements ................................... 4
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition .......... 6
PART II - OTHER INFORMATION
Item 1. Legal Proceedings ................................ 15
Item 2. Changes in Securities ............................ 16
Item 3. Defaults Upon Senior Securities .................. 16
Item 4. Submission of Matters to a Vote of Security
Holders ........................................ 16
Item 5. Other Information ................................ 16
Item 6. Exhibits and Reports on Form 8-K ................. 16
SIGNATURE .................................................. 18
EXHIBIT INDEX .............................................. 19
Exhibit 11. Computation of Earnings per Common Share ..... 20
Exhibit 12. Computation of Ratio of Earnings to Fixed
Charges .................................... 22
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<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
MOBIL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per-share amounts)
For the Three Months| For the Six Months
Ended June 30, | Ended June 30,
------------------- | ------------------
|
1995 1996 | 1995 1996
------- ------ | ------- -------
Revenues |
Sales and services (a) .................. $18,700 $19,262| $36,102 $37,790
Income from equity investments, asset |
sales, interest and other ............. 149 258| 374 430
------- -------| ------- -------
|
Total Revenues ........................ 18,849 19,520| 36,476 38,220
------- -------| ------- -------
Costs and Expenses |
Crude oil, products and operating |
supplies and expenses ................. 10,598 11,228| 20,601 21,899
Exploration expenses .................... 79 72| 174 148
Selling and general expenses ............ 1,868 1,239| 3,124 2,365
Depreciation, depletion and amortization 868 603| 1,537 1,258
Interest and debt discount expense ...... 117 97| 232 213
Taxes other than income taxes (a) ....... 4,739 4,693| 8,998 9,227
Income taxes ............................ 401 805| 995 1,591
------- -------| ------- -------
Total Costs and Expenses .............. 18,670 18,737| 35,661 36,701
------- -------| ------- -------
Net Income ................................ $ 179 $ 783| $ 815 $ 1,519
======= =======| ======= =======
|
Net Income Per Common Share (b)............ $ .42 $ 1.95| $ 1.99 $ 3.78
======= =======| ======= =======
|
Dividends Per Common Share ................ $ .925 $ 1.00| $ 1.775 $ 1.925
======= =======| ======= =======
|
|
|
Notes: |
|
(a) Includes excise and state gasoline |
taxes of ............................ $ 2,149 $ 2,235| $ 4,046 $ 4,372
|
(b) Based on net income less preferred |
stock dividend requirements of ...... $ 14 $ 13| $ 28 $ 27
divided by the weighted average |
number of common shares outstanding |
(000's) of .......................... 395,804 394,253| 395,823 394,371
The accompanying notes are an integral part of
these condensed consolidated financial
statements.
MOBIL - 1 -
<PAGE>
MOBIL CORPORATION
CONSOLIDATED BALANCE SHEET
(In millions)
Dec. 31, June 30,
ASSETS 1995 1996
------- --------
Current Assets
Cash and cash equivalents ................................ $ 498 $ 779
Accounts and notes receivable ............................ 7,316 7,173
Inventories .............................................. 3,287 3,308
Prepaid expenses and other current assets ................ 642 745
Deferred income taxes .................................... 313 227
------- -------
Total Current Assets ................................... 12,056 12,232
Investments and Long-Term Receivables ...................... 4,184 6,207
Properties, Plants and Equipment ........................... 51,719 52,862
Less: Accumulated Depreciation, Depletion and Amortization . 26,869 27,690
------- -------
Net Properties, Plants and Equipment ....................... 24,850 25,172
Deferred Charges and Other Assets .......................... 1,048 1,034
------- -------
Total Assets ........................................... $42,138 $44,645
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt .......................................... $ 2,127 $ 4,008
Accounts payable ......................................... 5,358 5,049
Accrued liabilities ...................................... 2,703 2,856
Income, excise, state gasoline and other taxes payable ... 2,676 2,653
Deferred income taxes .................................... 190 182
------- -------
Total Current Liabilities .............................. 13,054 14,748
Long-Term Debt ............................................. 4,629 4,580
Reserves for Employee Benefits ............................. 1,624 1,573
Accrued Restoration, Removal and Environmental Costs ....... 1,254 1,258
Deferred Credits and Other Noncurrent Obligations .......... 884 1,221
Deferred Income Taxes ...................................... 2,647 2,724
Minority Interest in Subsidiary Companies .................. 95 103
------- -------
Total Liabilities ...................................... 24,187 26,207
------- -------
Shareholders' Equity
Preferred stock (ESOP-related) -- shares issued and
outstanding: 92,864 at December 31, 1995 and
90,397 at June 30, 1996 ................................ 722 703
Unearned employee compensation (ESOP-related) ............ (411) (387)
Common stock -- $2.00 par value; shares authorized:
600,000,000; shares issued: 443,905,531 at December 31,
1995 and 444,861,178 at June 30, 1996 .................. 888 890
Capital surplus .......................................... 1,396 1,437
Earnings retained in the business ........................ 17,745 18,478
Cumulative foreign exchange translation adjustment ....... (27) (147)
Common stock held in treasury, at cost -- shares:
49,345,650 at December 31, 1995 and 50,886,450 at
June 30, 1996 .......................................... (2,362) (2,536)
------- -------
Total Shareholders' Equity ............................. 17,951 18,438
------- -------
Total Liabilities and Shareholders' Equity ................. $42,138 $44,645
======= =======
The accompanying notes are an integral part of
these condensed consolidated financial
statements.
MOBIL - 2 -
<PAGE>
MOBIL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
For the Six Months
Ended June 30,
-------------------
1995 1996
------- -------
Cash Flows from Operating Activities
Net Income ......................................... $ 815 $ 1,519
Adjustments to reconcile to net cash from
operating activities:
Depreciation, depletion and amortization ....... 1,537 1,258
Deferred income taxes .......................... (175) 179
Earnings (greater) less than dividends from
equity affiliates ............................ (18) 116
Exploration expenses (includes noncash
charges: 1995-$24; 1996-$9) ................. 174 148
Gain on sales of properties, plants and
equipment and other assets ................... (33) (35)
Decrease (increase) in working capital items.... 206 (410)
Other, net ..................................... 57 13
------- -------
Net Cash from Operating Activities ................... 2,563 2,788
------- -------
Cash Flows from Investing Activities
Capital and exploration expenditures ............... (1,778) (1,955)
Proceeds from sales of properties, plants and
equipment and other assets ....................... 217 250
Payments attributable to investments and
long-term receivables ............................ (134) (1,683)
------- -------
Net Cash Used in Investing Activities ................ (1,695) (3,388)
------- -------
Cash Flows from Financing Activities
Cash dividends ..................................... (731) (786)
Proceeds from borrowings having original
terms greater than three months .................. 1,170 546
Repayments of borrowings having original
terms greater than three months .................. (1,060) (394)
(Decrease) increase in other borrowings ............ (242) 1,647
Proceeds from issuance of common stock ............. 46 43
Purchase of common stock for treasury .............. (143) (174)
------- -------
Net Cash (Used in) Provided by Financing Activities .. (960) 882
------- -------
Effect of Exchange Rate Changes on Cash and
Cash Equivalents ................................... (31) (1)
------- -------
Net (Decrease) Increase in Cash and Cash Equivalents.. (123) 281
Cash and Cash Equivalents - Beginning of Period ...... 531 498
------- -------
Cash and Cash Equivalents - End of Period ............ $ 408 $ 779
======= =======
- -------------------------------------------------------------------------------
Memo:
Net cash from operating activities .................. $ 2,563 $ 2,788
Net cash used in investing activities ............... (1,695) (3,388)
Cash dividends ...................................... (731) (786)
------- -------
Excess (shortfall) of cash from operating activities
over investing activities and dividends ........... $ 137 $(1,386)
======= =======
- ------------------------------------------------------------------------------
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, 1995.
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. Acquisitions
On February 14, 1996, Mobil announced that an Australian subsidiary, Mobil
Exploration & Producing Australia Pty Ltd (MEPA) had acquired a substantial
equity position in Ampolex Limited (Ampolex) and had made a proposal to acquire
the remaining listed securities of this Australian oil and gas company. After
MEPA revised its offer in May 1996, the Board of Directors of Ampolex
recommended that the holders of Ampolex's ordinary and preference shares accept
MEPA's offer. At June 30, 1996, MEPA had purchased approximately 99% of
Ampolex's outstanding ordinary and convertible preference shares and
approximately 55% of its outstanding unsecured subordinated convertible 8% notes
(redeemable in 1998 at 3.30 Australian dollars per note). Assuming the purchase
of the remaining outstanding shares and notes under the terms MEPA offered, the
total purchase price will approximate $1,400 million, of which $1,276 million
had been spent at June 30, 1996.
In May 1995, Ampolex received requests from two companies seeking to convert a
total of 1,020,000 of Ampolex's then outstanding 22.7 million convertible notes
in the ratio of 6.6 ordinary shares for each convertible note on the basis of
their interpretation of the clause in the Convertible Note Trust Deed that
provides for the conversion ratio.
Ampolex maintains that the correct conversion ratio is one ordinary share for
each convertible note (1 to 1). Accordingly, Ampolex issued 1,020,000 ordinary
shares to the companies in exchange for the notes. On June 9, 1995, Ampolex
initiated proceedings in the Supreme Court of New South Wales, Australia
seeking, among other things, declarations that the proper conversion rate for
each note is 1 to 1. As of early August, approximately 6.6 million of the 21.7
million outstanding notes had not been acquired by MEPA. The matter is currently
being litigated and the final outcome cannot be determined at this time.
MOBIL - 4 -
<PAGE>
2. Acquisitions - continued
The acquisition of Ampolex will be recorded using the purchase accounting
method for business combinations and the excess of MEPA's investment in Ampolex
over the book value of Ampolex's net assets will be allocated on the basis of
the estimated fair values of the net assets acquired. At June 30, 1996, MEPA's
investment in Ampolex has been accounted for under the equity method, pending
the completion of the purchase price allocation. Ampolex will be consolidated in
Mobil's financial statements effective July 1, 1996.
On May 16, 1996, Mobil announced that it had acquired a 25% equity interest in
the Tengiz oil field in the Republic of Kazakstan for $1.1 billion. The terms
provided for payments of $546 million through June 30, 1996, with the balance
payable in installments through the year 2000, upon reaching certain project
milestones.
3. Supplementary Cash Flow Data
The table below details the components of the line "Decrease (increase) 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.
----------------------------------------------------------------------
(In millions) For the Six Months
Ended June 30,
--------------------
1995 1996
----- -----
Changes in Working Capital Items
(Increases)/decreases
Accounts and notes receivable ................. $ 95 $ (68)
Inventories ................................... (188) (84)
Prepaid expenses and other current assets ..... (140) (114)
Accounts payable .............................. (178) (152)
Accrued liabilities ........................... 395 (17)
Income, excise, state gasoline and
other taxes payable ......................... 222 25
----- -----
Decrease (increase) in working capital items .. $ 206 $(410)
===== =====
----------------------------------------------------------------------
MOBIL - 5 -
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition.
RESULTS OF OPERATIONS
---------------------------------------------------------------------------
| |
|REPORTED EARNINGS Second Quarter | First Six Months |
| (In millions) ______________ Incr./|_________________ Incr./ |
| 1995 1996 (Decr.)| 1995 1996 (Decr.) |
| ----- ----- ----- | ------ ------ ------ |
| Petroleum Operations | |
| E&P - United States ........$ 57 $ 167 $ 110 | $ 139 $ 322 $ 183 |
| - International ........ 241 303 62 | 536 660 124 |
| ----- ----- ----- | ------ ------ ------ |
| Total E&P .................. 298 470 172 | 675 982 307 |
| ----- ----- ----- | ------ ------ ------ |
| M&R - United States ........ (17) 169 186 | (17) 228 245 |
| - International ........ (115) 183 298 | 31 364 333 |
| ----- ----- ----- | ------ ------ ------ |
| Total M&R .................. (132) 352 484 | 14 592 578 |
| ----- ----- ----- | ------ ------ ------ |
| Total Petroleum .............. 166 822 656 | 689 1,574 885 |
| | |
| Chemical ..................... 170 65 (105) | 344 135 (209) |
| Corporate and Other (a) ...... (84) (57) 27 | (80) (85) (5) |
| Net Financing Expense ........ (73) (47) 26 | (138) (105) 33 |
| ----- ----- ----- | ------ ------ ------ |
| Net Income ...................$ 179 $ 783 $ 604 | $ 815 $1,519 $ 704 |
| ===== ===== ===== | ====== ====== ====== |
|------------------------------------------------------------------------------|
| |
| OPERATING EARNINGS Second Quarter | First Six Months |
| (Adjusted for Special Items)_____________ Incr./ | _________________ Incr./|
| (In millions) 1995 1996 (Decr.) | 1995 1996 (Decr.)|
| ----- ----- ----- | ------ ------ ------ |
| Petroleum Operations | |
| E&P - United States ........$ 109 $ 167 $ 58 | $ 191 $ 322 $ 131 |
| - International ........ 266 303 37 | 561 660 99 |
| ----- ----- ----- | ------ ------ ------ |
| Total E&P .................. 375 470 95 | 752 982 230 |
| ----- ----- ----- | ------ ------ ------ |
| M&R - United States ........ 87 169 82 | 87 228 141 |
| - International ........ 153 183 30 | 299 364 65 |
| ----- ----- ----- | ------ ------ ------ |
| Total M&R .................. 240 352 112 | 386 592 206 |
| ----- ----- ----- | ------ ------ ------ |
| Total Petroleum .............. 615 822 207 | 1,138 1,574 436 |
| | |
| Chemical ..................... 186 65 (121) | 360 135 (225) |
| Corporate and Other (a) ...... (22) (26) (4) | (18) (54) (36) |
| Net Financing Expense ........ (73) (47) 26 | (138) (105) 33 |
| ----- ----- ----- | ------ ------ ------ |
| Income Excluding Special Items 706 814 108 | 1,342 1,550 208 |
| Special Items (table on page 7)(527) (31) 496 | (527) (31) 496 |
| ----- ----- ----- | ------ ------ ------ |
| Net Income ...................$ 179 $ 783 $ 604 | $ 815 $1,519 $ 704 |
| ===== ===== ===== | ====== ====== ====== |
|------------------------------------------------------------------------------|
(a) Corporate and Other includes the results from Real Estate operations,
Mining and Minerals, administrative expenses and other corporate items.
MOBIL - 6 -
<PAGE>
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SPECIAL ITEMS Second Quarter | First Six Months
(In millions) ______________ | ________________
1995 1996 | 1995 1996
----- ----- | ----- -----
SRP Implementation (a).............. - $ (31) | - $ (31)
Restructuring (b)................... $(505) - | $(505) -
Asset Sales ........................ (22) - | (22) -
----- ----- | ----- -----
Total Special Items .............. $(527) $ (31) | $(527) $ (31)
===== ===== ===== =====
(a) Staff Redesign Project (SRP).
(b) Includes $286 million for SRP, $39 million for restructuring of U.S.
marketing and refining operations and $180 million for European refining.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REVENUES BY SEGMENT Second Quarter | First Six Months
(In millions) Incr./| Incr./
(Decr.)| (Decr.)
1995 1996 % | 1995 1996 %
------- ------- ---- | ------- ------- ----
Exploration & Producing ....... $ 1,748 $ 1,780 2 | $ 3,575 $ 3,841 7
Marketing & Refining .......... 15,559 16,897 9 | 29,889 32,638 9
Chemical ...................... 1,463 754 (48) | 2,814 1,573 (44)
Corporate & Other ............. 79 89 13 | 198 168 (15)
------- ------- | ------- -------
Total Revenues .............. $18,849 $19,520 4 | $36,476 $38,220 5
======= ======= | ======= =======
- --------------------------------------------------------------------------------
CONSOLIDATED RESULTS OVERVIEW
SECOND QUARTER 1996 COMPARED WITH SECOND QUARTER 1995
Consolidated second quarter net income was $783 million, an increase of $604
million from the $179 million reported for the second quarter of 1995. Earnings
per common share for the second quarter of 1996 were $1.95, compared with $0.42
for the second quarter of 1995. Special charges this year of $31 million were
for implementation expenses associated with the restructuring of staff support
services. The second quarter of 1995 included special charges of $527 million,
primarily for the restructuring of worldwide staff support services, marketing
and refining operations in the United States and refining in Europe. Excluding
special charges from both periods, second quarter 1996 operating income of $814
million increased $108 million, or 15%.
Operating income in the second quarter was the highest income for a quarter in
the company's history, reflecting not only strong industry factors but also
strong performance from restructuring and growth initiatives programs. Mobil's
improvement this year reflected favorable industry fundamentals in the petroleum
sector, partly offset by weaker margins in the chemical sector. Mobil's
worldwide average crude oil and U.S. natural gas prices were up about $1.50 per
barrel and $0.55 per thousand cubic feet, respectively, contributing to higher
upstream earnings. Higher worldwide refining margins and higher product sales
benefited earnings in the downstream sector. All sectors realized benefits from
restructuring programs. Growth initiatives also contributed to the increased
downstream earnings. These positive factors were, however, partially offset by
weaker marketing margins in the United Kingdom, reflecting intense competitive
pressures, as well as lower worldwide polyethylene and paraxylene margins in our
chemical business. Additionally, income was lower due to the absence of income
MOBIL - 7 -
<PAGE>
CONSOLIDATED RESULTS OVERVIEW - continued
from the divested plastics and resin trading businesses and the expiration of
the tax holiday for the company's petrochemicals joint venture in Saudi Arabia.
This quarter, pre-tax controllable cash operating expenses were $60 million
lower than the same period last year, reflecting the impact of Mobil's ongoing
restructuring programs. These net savings were achieved after absorbing higher
expenses due to inflation and volume growth.
Business fundamentals are unpredictable in the near term and cannot be relied
upon to sustain or improve earnings. Therefore, the company continues to manage
its business for the long term with the objectives of strengthening the asset
base and ensuring long-term, profitable growth. In support of these objectives,
Mobil announced two significant upstream acquisitions and two asset sales
covering noncore businesses that are worth more to others. The acquisition of
Ampolex Limited, an Australia based global oil and gas company with significant
exploration and production potential, and the acquisition of a 25% interest in
the giant Tengiz oil field in Kazakstan have added substantial oil and gas to
our production volumes and hydrocarbon reserves base. Two additional
transactions, the pending sale of the community land development business and
the sale of Tucker Housewares, reflect the continued focus on core businesses
and the upgrading of the asset base. Cash proceeds from asset sales continue to
provide significant funding for reinvestment in growth opportunities.
Worldwide revenues in the second quarter of 1996 of $19,520 million were $671
million higher than revenues in the second quarter of 1995, reflecting higher
worldwide crude oil and product prices, higher U.S. natural gas prices, and
higher petroleum product sales, partly offset by lower petrochemical prices and
the absence of revenues from the divested chemical plastics and resin trading
businesses. Crude oil, products and operating supplies and expenses increased by
$630 million to $11,228 million, primarily due to increased crude and product
prices and higher worldwide product sales volumes, partly offset by the impact
of the divested chemical businesses. Selling and general expenses decreased $629
million to $1,239 million, primarily due to the absence of the 1995
restructuring charges, overall reduced expenditures resulting from
implementation of the staff redesign project and other restructuring
initiatives, and the divestiture of the chemical businesses. Depreciation,
depletion and amortization expenses were $265 million lower largely due to the
absence of 1995 restructuring-related asset writedowns and the effects of
adopting FAS 121 in the fourth quarter of 1995. Interest and debt discount
expenses decreased $20 million to $97 million, reflecting lower average debt
balances as well as timing of certain one-time, favorable items. Taxes other
than income taxes decreased $46 million as higher worldwide product sales
volumes and an increase in the duty tax rate in the United Kingdom were more
than offset by the absence of import duties on crude oil resulting from the
closure of the Woerth refinery in Germany. Income tax expense increased $404
million to $805 million, largely a function of higher pre-tax income.
FIRST SIX MONTHS 1996 COMPARED WITH FIRST SIX MONTHS 1995
Mobil's estimated first half 1996 net income was $1,519 million, compared with
$815 million for the same period of 1995. First half 1995 net income included
special charges of $527 million, primarily for restructuring of worldwide staff
support services, marketing and refining operations in the United States, and
refining in Europe. This year's income included special charges of $31 million
for expenses related to implementation of the staff redesign project.
MOBIL - 8 -
<PAGE>
CONSOLIDATED RESULTS OVERVIEW - continued
Excluding special items, first half operating income of $1,550 million was up
$208 million, or 15%, from the comparable period of 1995. This improvement was
in the petroleum sector, primarily due to stronger prices, higher refining
margins, higher product sales to trade, savings from restructuring programs and
benefits from growth initiatives. These favorable items were partly offset by
lower marketing margins in the U.K. and Japan, as well as a decline in Chemical
income. In the Petroleum sector, higher prices and higher refining margins
reflected the effects of colder winter weather in the northern hemisphere and
resulting strong demand. Chemical income declined due to lower polyethylene and
paraxylene margins, the absence of income from divested businesses and the
expiration of the tax holiday in Saudi Arabia for our petrochemicals joint
venture.
Since May 1995, Mobil has commenced five major restructuring programs with the
projected elimination of approximately 6,000 positions and the closure of
certain facilities. During 1995, the Company established restructuring
provisions of $911 million ($590 million after tax), primarily to cover the
costs of employee separation benefits and the closure of certain facilities. Of
this amount, $671 million represents forecast cash expenditures. As of June 30,
1996, cumulative cash outlays covered by the restructuring provisions totalled
$285 million. As of the same date, spending related to other implementation
costs for these programs totalled about $70 million, before tax. All programs
are on schedule and are expected to reach an annualized savings rate of over $1
billion by year-end.
Six month 1996 revenues of $38,220 million were $1,744 million higher than
revenues in the same period of 1995 due to increased worldwide petroleum product
sales volumes, higher worldwide selling prices for crude oil and petroleum
products, and higher U.S. natural gas prices, partly offset by lower
petrochemical prices and the absence of revenues from the divested chemical
plastics and resin trading businesses. Crude oil, products and operating
supplies and expenses increased by $1,298 million to $21,899 million due to
increased crude and product prices and higher product sales volumes, partly
offset by the absence of costs from the divested chemical businesses. Selling
and general expenses declined $759 million to $2,365 million, primarily due to
the absence of last year's special charges for various restructuring programs,
subsequent expense reductions associated with those programs and the divestiture
of the chemical businesses. Depreciation, depletion and amortization expenses
were $279 million lower largely due to the absence of 1995 restructuring-related
asset writedowns and the effects of adopting FAS 121 in the fourth quarter of
1995. Taxes other than income taxes increased $229 million to $9,227 million due
to higher worldwide product sales volumes and an increase in the duty tax rate
in the United Kingdom, partially offset by the absence of import duties on crude
oil resulting from the closure of the Woerth refinery in Germany. Income tax
expense increased $596 million over the prior year, largely a function of higher
pre-tax income.
MOBIL - 9 -
<PAGE>
Exploration and Producing
- -------------------------------------------------------------------------------
Exploration and Producing
Selected Operating Data Second Quarter First Six Months
Incr./(Decr.) Incr./(Decr.)
1995 1996 Vol. % 1995 1996 Vol. %
---- ---- ---- ---- ---- ---- ---- ----
Net Crude Oil and NGL |
Production (TBD) - U.S. 285 278 (7) (2) | 287 274 (13) (5)
- Intl 522 557 35 7 | 517 555 38 7
----- ----- ----- | ----- ----- -----
Total ................. 807 835 28 3 | 804 829 25 3
===== ===== ===== | ===== ===== =====
Net Natural Gas |
Production (MMCFD) - U.S. 1,528 1,387 (141) (9) | 1,511 1,407 (104) (7)
- Intl 2,954 2,881 (73) (2) | 3,247 3,284 37 1
----- ----- ----- | ----- ----- -----
Total ................. 4,482 4,268 (214) (5) | 4,758 4,691 (67) (1)
===== ===== ===== | ===== ===== =====
Natural Gas Sales |
(MMCFD) - U.S. 3,479 2,493 (986)(28) | 3,588 2,670 (918)(26)
- Intl 3,038 2,954 (84) (3) | 3,334 3,474 140 4
----- ----- ----- | ----- ----- -----
Total ................. 6,517 5,447(1,070)(16) | 6,922 6,144 (778)(11)
===== ===== ===== | ===== ===== =====
- -------------------------------------------------------------------------------
SECOND QUARTER 1996 COMPARED WITH SECOND QUARTER 1995
Exploration and Producing income of $470 million was $172 million higher than
the second quarter of last year. Last year's results included $77 million of
special charges; $55 million related to the restructuring of staff support
services and $22 million related to losses on U.S. asset sales. There were no
special charges this year. Excluding special items, operating income of $470
million was $95 million higher than last year.
In the United States, operating income was $167 million, up $58 million, as
higher prices for crude oil and natural gas and lower producing expenses were
only partially offset by the effects of lower production volumes, primarily
resulting from asset disposals and natural field declines. The favorable impact
of higher natural gas prices was somewhat reduced by opportunity losses on
forward sales made as part of the company's risk management program. Lower
capital recovery charges resulting from the 1995 adoption of FAS 121 also
benefited earnings.
International income of $303 million was $37 million higher, mainly due to
higher crude oil prices and lower exploration and producing expenses.
Production volumes were higher reflecting the first recorded production from
the Ampolex and Tengiz acquisitions and production from new wells and
investment programs in Nigeria. These favorable factors more than offset
operating problems in the U.K. and Australia, a strike in Norway and the impact
of timing on liftings from Indonesia.
FIRST SIX MONTHS 1996 COMPARED WITH FIRST SIX MONTHS 1995
Exploration and Producing income of $982 million was $307 million higher than
last year. Excluding previously mentioned special items (1995 charges of $77
million), operating income of $982 million was $230 million higher than last
year. Higher worldwide crude oil prices, higher U.S. natural gas prices, and
lower exploration and producing expenses were only partly offset by the impact
of lower U.S. production. Lower capital recovery charges, resulting from the
adoption of FAS 121 in the fourth quarter of 1995, and benefits from initiatives
also helped earnings.
MOBIL - 10 -
<PAGE>
Marketing and Refining
- -------------------------------------------------------------------------------
Marketing and Refining Second Quarter First Six Months
Selected Operating Data Incr./(Decr.) Incr./(Decr.)
1995 1996 Vol. % 1995 1996 Vol. %
----- ----- --- -- ----- ----- --- --
Petroleum Product
Sales (TBD)(a) - U.S. ... 1,255 1,299 44 4 | 1,255 1,291 36 3
- Intl. .. 1,842 1,900 58 3 | 1,873 1,959 86 5
----- ----- --- | ----- ----- ---
Total .................. 3,097 3,199 102 3 | 3,128 3,250 122 4
===== ===== === | ===== ===== ===
|
Refinery Runs (TBD) |
- U.S. ... 884 939 55 6 | 894 909 15 2
- Intl. .. 1,224 1,211 (13) (1)| 1,234 1,206 (28) (2)
----- ----- --- | ----- ----- ---
Total .................. 2,108 2,150 42 2 | 2,128 2,115 (13) (1)
===== ===== === | ===== ===== ===
(a) includes supply/other sales
- -------------------------------------------------------------------------------
SECOND QUARTER 1996 COMPARED WITH SECOND QUARTER 1995
Marketing and Refining reported income of $352 million in the second quarter
of 1996 versus last year's second quarter loss of $132 million. Last year's
results included special charges of $372 million (U.S. -- $65 million for
redesign of staff support services and $39 million for restructuring of
marketing and refining operations; International -- $88 million for redesign of
staff support services and $180 million for European refining). There were no
special items this year. Excluding special items, operating income of $352
million was $112 million higher than last year.
United States operating income was $169 million this year versus $87 million
last year. This year's results benefited from higher margins, reflecting rising
gasoline demand entering the driving season, following an unseasonably cold
winter, and a high level of unscheduled industry refinery downtime. Lower
expenses resulting from restructuring programs and growth in retail automotive
gasoline sales also contributed to this year's performance.
International operating income of $183 million was up $30 million, as higher
refining margins were partly offset by lower marketing margins, mainly in the
United Kingdom, due to continuing intense competitive pressures. Higher product
sales to trade also contributed to improved earnings, primarily reflecting
strong demand in the Asia-Pacific area.
FIRST SIX MONTHS 1996 COMPARED WITH FIRST SIX MONTHS 1995
Marketing and Refining income was $592 million for the first six months of
1996 compared with earnings of $14 million last year. Excluding previously
mentioned special charges ($372 million for redesign of staff support services
and other restructuring), operating income of $592 million was $206 million
higher than the $386 million earned last year. This improvement was primarily
due to higher worldwide refining margins and product sales to trade, coupled
with benefits from growth and restructuring initiatives. These positive factors
were partly offset by lower marketing margins in the United Kingdom and Japan.
MOBIL - 11 -
<PAGE>
Chemical
SECOND QUARTER AND FIRST SIX MONTH COMPARISONS OF 1996 WITH 1995
Chemical income of $65 million was $105 million lower than last year's second
quarter. Excluding last year's special charge of $16 million for redesign of
staff support services, operating income of $65 million was $121 million lower
than the record $186 million earned in the second quarter of 1995. In the first
six months of 1996, Chemical income was $135 million compared with $344 million
in the same period last year. Excluding the special charges referred to above,
Chemical operating income of $135 million was $225 million lower than the
first six months of 1995. Declines in both periods reflected lower worldwide
polyethylene resin and paraxylene margins, the absence of income from the
divested plastics and resin trading businesses and the expiration of the
tax holiday for the company's petrochemicals joint venture in Saudi Arabia.
Corporate and Other
SECOND QUARTER AND FIRST SIX MONTH COMPARISONS OF 1996 WITH 1995
Corporate and Other expense was $57 million in the second quarter of 1996
compared with $84 million in the same period last year. Excluding a $62 million
special charge for redesign of staff support services in last year's second
quarter and a $31 million special charge for restructuring implementation this
year, expenses were $4 million higher in 1996.
For the first six months of 1996, Corporate and Other expense, excluding the
aforementioned special items, was $54 million compared with $18 million last
year. Last year's results were favorably impacted by the sale of an office
complex in Arlington, Virginia.
Net Financing Expense
SECOND QUARTER AND FIRST SIX MONTH COMPARISONS OF 1996 WITH 1995
Net Financing Expense of $47 million was $26 million lower in the second
quarter of 1996. For the first six months of 1996, Net Financing Expense was
$105 million, down $33 million from the previous year. Lower expense in both
periods reflected lower average debt balances as well as the timing of certain
favorable, non-recurring items including the capitalization of interest expense
on major projects in Nigeria, Qatar and Canada (Hibernia).
MOBIL - 12 -
<PAGE>
DISCUSSION OF FINANCIAL CONDITION
At June 30, 1996, total current assets of $12,232 million were $176 million
higher than at year-end 1995 primarily reflecting a higher level of cash and
cash equivalents.
Investments and long-term receivables increased $2,023 million, primarily due
to the acquisitions of Ampolex Limited and a 25% equity interest in the Tengiz
field in Kazakstan.
Net properties, plants and equipment increased $322 million to $25,172
million. Capital expenditures were largely offset by depreciation, asset sales
and currency translation effects.
Total current liabilities of $14,748 million at June 30, 1996, increased
$1,694 million from year-end 1995. This increase primarily reflects higher
short-term debt used to fund the acquisitions of Ampolex and Tengiz.
Total debt of Mobil and its subsidiaries was $8,588 million at June 30, 1996,
up $1,832 million from year-end 1995. The debt-to-capitalization ratio was 32%
at June 30, 1996, compared with 27% at year-end 1995.
Deferred Credits and Other Noncurrent Obligations increased $337 million to
$1,221 million mainly due to future obligations related to the acquisition of an
interest in the Tengiz field.
Shareholders' equity rose $487 million during the first six months of 1996,
primarily due to an increase of $733 million in earnings retained in the
business at June 30, 1996. Partly offsetting the higher retained earnings were a
net charge in the cumulative foreign exchange translation account reflecting a
strengthening U.S. dollar in certain countries in which the company has
significant operations ($120 million) and an increase in the cost of common
stock held in the treasury as 1,540,800 shares were purchased on the open market
to offset the dilutive effects of stock options ($174 million).
During the first six months of 1996, net cash generated from operating
activities was $2,788 million, $1,386 million less than the cash requirements
for investing activities and dividends reflecting the cost of the two major
acquisitions of Ampolex and Tengiz, consistent with Mobil's stated growth
strategy in international oil and gas.
MOBIL - 13 -
<PAGE>
DISCUSSION OF FINANCIAL CONDITION - continued
Capital and Exploration Expenditures for the second quarter of 1996 were
$1,043 million, an increase of $83 million from the comparable period last year.
For the first six months of 1996, worldwide capital and exploration expenditures
were $1,955 million, compared with $1,778 million for the year-earlier period.
- ----------------------------------------------------------------------------
CAPITAL AND EXPLORATION
EXPENDITURES Second Quarter First Six Months
(In millions) 1995 1996 1995 1996
------ ------ ------ ------
Petroleum Operations |
Exploration & Producing - U.S. .. $ 158 $ 154 | $ 271 $ 272
- Intl. . 433 435 | 808 846
Marketing & Refining - U.S. .. 115 92 | 239 174
- Intl. . 181 260 | 324 487
Chemical ........................... 52 79 | 92 131
Corporate & Other .................. 21 23 | 44 45
------ ------ | ------ ------
Total Capital and Exploration |
Expenditures ................. $ 960 $1,043 | $1,778 $1,955
====== ====== | ====== ======
Memo: |
Exploration Expenses charged |
to income, included above |
- U.S. .. $ 8 $ 24 | $ 26 $ 33
- Intl. . 71 48 | 148 115
------ ------ | ------ ------
Total Exploration Expenses ..... $ 79 $ 72 | $ 174 $ 148
------ ------ | ------ ------
- ----------------------------------------------------------------------------
In addition to the above Capital & Exploration spending, Mobil also progressed
two major upstream investments during the quarter. Firstly, approximately $1.3
billion has been spent to date on the acquisition of Ampolex Limited. Secondly,
Mobil acquired a 25% equity interest in the Tengiz oil field in Kazakstan for
$1.1 billion, of which about half has been paid and the balance will be settled
in installments through the year 2000, upon reaching certain project milestones.
Return on average shareholders' equity was 17.1% for the twelve month period
ended June 30, 1996, compared with 13.5% for the calendar year 1995. Return on
average capital employed for the twelve month period ended June 30, 1996, was
13.0%, compared with 10.9% for the calendar year 1995.
Whenever external financing is needed, Mobil and its subsidiary companies have
ready access to multiple capital markets, including significant bank credit
lines.
At June 30, 1996, 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 were
also in place. Subsequent to the end of the quarter, on July 17, 1996, a Mobil
subsidiary issued U.S. $200 million of 6.375% Euro-Medium-Term Notes due in
1998, guaranteed by Mobil.
At June 30, 1996, 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>
CURRENT DEVELOPMENTS
Gulf of Mexico
During 1995, Mobil acquired 40% interest in two deepwater Gulf of Mexico
developments -- the Cooper field in Garden Banks and the Green Canyon area's
Allegheny field. Recent performance of both projects has been disappointing.
Original projections for the Cooper field called for ultimate recovery of 60-90
million barrels of oil equivalent (MMBOE) (Mobil's share 24-36 MMBOE). Original
projections for the Allegheny field were for recovery of about 120 MMBOE
(Mobil's share 48 MMBOE). Mobil's combined net book value for both fields at
June 30, 1996, was $229 million. Ultimate production and recovery for both
projects are currently being reevaluated following recent drilling activities at
the Allegheny field and recent drilling and production performance at the Cooper
field. Ultimate production and reserves are expected to be lower than originally
projected at both fields. Lower cost development scenarios are also being
progressed for the Allegheny project which will likely delay start-up from late
1998 to near 2000. Mobil is working with Enserch (operator) to determine the
best course of action to improve the economics of both projects and continues to
closely monitor their progress.
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 July 17, 1996, a proceeding brought by the EPA against Mobil Oil
Corporation on July 8, 1994 was settled. The EPA had alleged that the operation
of Mobil Oil Corporation's Paulsboro, New Jersey refinery violated the new
source performance standard of the Clean Air Act, and had sought penalties of
$953,800. The proceeding was settled by a payment of $142,800.
The foregoing proceeding is not of material importance in relation to Mobil's
accounts and is described in compliance with SEC rules requiring disclosure of
such proceedings although not material.
MOBIL - 15 -
<PAGE>
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 has provided in its accounts for items and issues not yet resolved based
on management's best judgement.
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.
None.
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 (electronic only)
MOBIL - 16 -
<PAGE>
Reports on Form 8-K.
Mobil filed the following Current Reports on Form 8-K during and subsequent
to the end of the second quarter:
Date of 8-K Description of 8-K
April 23, 1996 Submitted a copy of the Mobil News Release issued April
22, 1996, reporting Mobil's estimated earnings for the
first quarter of 1996, and the Mobil News Release issued
April 22, 1996, correcting certain Petroleum Product Sales
numbers in Table 6 of the above referenced News Release.
May 13, 1996 Submitted a copy of the Mobil News Release dated May 13,
1996, announcing an increase in the price offered in the
Mobil Exploration & Producing Australia Pty Ltd takeover
offer for Ampolex Ltd and the Mobil News Release dated May
13, 1996, announcing the expansion of the company's joint
venture petrochemicals complex at Yanbu, Saudi Arabia.
May 17, 1996 Submitted a copy of the Mobil News Release dated May 16,
1996, announcing the acquisition of a 25% interest in the
Tengiz oil field in the Republic of Kazakstan.
July 22, 1996 Submitted a copy of the Mobil News Release dated July 22,
1996, reporting Mobil's estimated earnings for the second
quarter of 1996.
August 7, 1996 Submitted a copy of the Mobil News Release dated August 7,
1996, reporting that BP and Mobil have received approval
from the European Commission to combine the two companies'
operations in the marketing and refining of fuels and
lubricants.
MOBIL - 17 -
<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/ George Broadhead
NAME AND TITLE George Broadhead
Acting Controller;
Principal Accounting Officer
DATE August 13, 1996
MOBIL - 18 -
<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 - 19 -
<PAGE>
Exhibit 11.
MOBIL CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
(In millions, except for per-share amounts;
number of shares in thousands)
For the Three Months
Ended June 30,
--------------------
Primary 1995 1996
- ------- -------- --------
Net income ............................................ $ 179 $ 783
Less dividends on preferred stock ..................... 14 13
-------- --------
Net income applicable to common shares ................ $ 165 $ 770
======== ========
Weighted average number of primary common shares
Outstanding ......................................... 395,804 394,253
Issuable on assumed exercise of stock options ....... 4,219 4,986
-------- --------
Total ............................................ 400,023 399,239
======== ========
Primary earnings per common share ..................... $ .41 $ 1.93
======== ========
Fully Diluted
- -------------
Net income ............................................ $ 179 $ 783
Less additional contribution to ESOP .................. -(a) 4
Less dividends on preferred stock ..................... 14(a) -
-------- --------
Adjusted net income applicable to common shares ....... $ 165 $ 779
======== ========
Weighted average number of primary common shares ...... 400,023 399,239
Increment to assumed exercise of stock options to
reflect maximum dilutive effect ..................... - -
Assumed conversion of preferred stock ................. -(a) 9,040
-------- --------
Total ............................................ 400,023 408,279
======== ========
Fully diluted earnings per common share ............... $ .41 $ 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.
(a) For the three months ended June 30, 1995, 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.
MOBIL - 20 -
<PAGE>
Exhibit 11. (concluded)
MOBIL CORPORATION
COMPUTATION OF EARNINGS PER COMMON SHARE
(In millions, except for per-share amounts;
number of shares in thousands)
For the Six Months
Ended June 30,
----------------------
Primary 1995 1996
-------- --------
Net income ....................................... $ 815 $ 1,519
Less dividends on preferred stock ................ 28 27
-------- --------
Net income applicable to common shares ........... $ 787 $ 1,492
======== ========
Weighted average number of primary common shares
Outstanding .................................... 395,823 394,371
Issuable on assumed exercise of stock options .. 3,706 4,949
-------- ---------
Total ...................................... 399,529 399,320
======== =========
Primary earnings per common share................. $ 1.97 $ 3.74
======== ========
Fully Diluted
Net Income ....................................... $ 815 $ 1,519
Less additional contribution to ESOP ............. 11 10
-------- --------
Adjusted net income applicable to common shares .. $ 804 $ 1,509
======== ========
Weighted average number of primary common shares . 399,529 399,320
Increment to assumed exercise of stock options to
reflect maximum dilutive effect ................ 465 -
Assumed conversion of preferred stock ............ 9,436 9,040
-------- ---------
Total ...................................... 409,430 408,360
======== =========
Fully diluted earnings per common share........... $ 1.96 $ 3.70
======== =========
- -----------
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.
MOBIL - 21 -
Exhibit 12.
MOBIL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
Six
Months
Ended
Year Ended December 31, June 30,
------------------------------------------ --------
1991 1992 1993 1994 1995 1996
------ ------ ------ ------ ------ ------
Income Before Change in
Accounting Principle(s). $1,920 $1,308 $2,084 $1,759 $2,376 $1,519
Add:
Income taxes ............. 2,105 1,567 1,931 1,919 2,015 1,591
Portion of rents
representative of
interest factor ........ 344 319 339 340 368 183
Interest and debt
discount expense ....... 713 612 529(a) 461 467 213
Earnings (greater) less
than dividends from
equity affiliates....... (151) 36 265 (40) (51) 116
------ ------ ------ ------ ------ ------
Income as Adjusted ....... $4,931 $3,842 $5,148 $4,439 $5,175 $3,622
====== ====== ====== ====== ====== ======
Fixed Charges:
Interest and debt
discount expense ....... $ 713 $ 612 $ 529(a)$ 461 $ 467 $ 213
Capitalized interest ..... 20 42 42 37 47 33
Portion of rents
representative of
interest factor ........ 344 319 339 340 368 183
------ ------ ------ ------ ------ ------
Total Fixed Charges ...... $1,077 $ 973 $ 910 $ 838 $ 882 $ 429
====== ====== ====== ====== ====== ======
Ratio of Earnings to
Fixed Charges .......... 4.6 3.9 5.7(a) 5.3 5.9 8.4
====== ====== ====== ====== ====== ======
Note:
For the years ended December 31, 1991, 1992, 1993, 1994 and 1995 and the six
months ended June 30, 1996, Fixed Charges exclude $42 million, $37 million, $31
million, $37 million, $28 million, and $14 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.
MOBIL - 22-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
ART. 5 FDS FOR PERIOD ENDED JUNE 30, 1996 10-Q
This schedule contains summary financial information extracted
from the June 30, 1996 Form 10-Q, and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000067182
<NAME> MOBILCORP/JNICHOLS
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 779
<SECURITIES> 0
<RECEIVABLES> 7,173
<ALLOWANCES> 0
<INVENTORY> 3,308
<CURRENT-ASSETS> 12,232
<PP&E> 52,862
<DEPRECIATION> 27,690
<TOTAL-ASSETS> 44,645
<CURRENT-LIABILITIES> 14,748
<BONDS> 4,580
0
703
<COMMON> 890
<OTHER-SE> 16,845
<TOTAL-LIABILITY-AND-EQUITY> 44,645
<SALES> 37,790<F1>
<TOTAL-REVENUES> 38,220<F1>
<CGS> 21,899
<TOTAL-COSTS> 23,157
<OTHER-EXPENSES> 9,375
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 213
<INCOME-PRETAX> 3,110
<INCOME-TAX> 1,591
<INCOME-CONTINUING> 1,519
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,519
<EPS-PRIMARY> 3.74
<EPS-DILUTED> 3.70
<FN>
<F1>SALES AND TOTAL REVENUES INCLUDE $4,372 MILLION OF EXCISE AND STATE
GASOLINE TAXES.
</FN>
</TABLE>
