<PAGE>
PAGE 1
- - -----------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 1996
MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7555 13-2850309
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
3225 Gallows Road
Fairfax, Virginia 22037-0001
Telephone: (703) 846-3000
(Address of principal executive offices)
<PAGE>
- - -----------------------------------------------------------------
PAGE 2
Item 5. Other Events
The Registrant hereby incorporates by reference herein the
information set forth in its two News Releases issued April 22, 1996,
copies of which are annexed hereto as exhibits 99-1 and 99-2.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99-1. Mobil Corporation News Release issued April 22,
1996 reporting estimated earnings for the first quarter of 1996.
99-2. Mobil Corporation News Release issued April 22,
1996, correcting certain Petroleum Product Sales numbers in Table
6 of its News Release reporting first quarter 1996 earnings.
<PAGE>
PAGE 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
REGISTRANT MOBIL CORPORATION
By /s/ Gordon G. Garney
NAME AND TITLE Gordon G. Garney, Senior Assistant Secretary
DATE April 23, 1996
<PAGE>
PAGE 4
EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
------- ----------------
99-1. Mobil Corporation, Electronic
News Release issued
April 22, 1996
99-2. Mobil Corporation, Electronic
News Release issued
April 22, 1996
Exhibit 99-1
CONTACTS: Christopher Springham or Gail Campbell Woolley
+1 703 846 2500
Fairfax, VA, April 22, 1996 -- Mobil Corporation today reported
estimated first quarter 1996 net income of $736 million. Income
was up $100 million, or 16%, from the first quarter of 1995.
There were no special items in either period. Estimated earnings
per common share for the first quarter were $1.83 versus $1.57 in
the comparable period of 1995.
In commenting on this quarter's income compared with the same
quarter last year, Chairman Lucio A. Noto said, "Mobil's
improvement reflected higher income in the petroleum sector,
largely driven by improved industry fundamentals, partly offset by
higher scheduled and unscheduled refinery downtime and lower
Chemical income. Mobil's worldwide average crude oil price was
about $1.85 per barrel higher than last year and our U.S. natural
gas price strengthened by more than $.80 per thousand cubic feet,
both reflecting strong demand due to the colder winter weather in
the northern hemisphere. Production volumes were up almost 40
thousand barrels per day of oil equivalent as a result of 1995
streaming of new fields in the United Kingdom and higher
production rates in Nigeria. Worldwide refining margins have been
stronger this year; however, marketing margins in two of Mobil's
key markets, the United Kingdom and Japan, have been weaker,
reflecting intense competitive pressures. The decline in Chemical
income is mainly due to lower worldwide polyethylene resin
margins, principally reflecting a weakening from last year's
exceptionally strong margins, and the absence of income from the
divested plastics business."
Mr. Noto added, "We continue to make progress in implementing the
various restructuring programs announced since May of last year.
Controllable cash operating expenses were down in the quarter by
about $70 million pre-tax versus last year, after absorbing cost
increases for inflation, higher volumes and current period charges
related to the implementation of our restructuring programs."
Mr. Noto continued, "We have developed plans to form major
alliances in two of our mature operating areas, Europe and the
United States, each structured to maximize the value of our
current asset base. In Europe, Mobil and British Petroleum
jointly announced a breakthrough strategy to combine our fuels and
lubes businesses. This partnership, pending government approvals
will enable both companies to achieve efficiencies and scale
economics otherwise unavailable to either company on a
stand-alone basis."
"Additionally, in the U.S., we are actively negotiating the sale
of Mobil's natural gas processing plants to, and the formation of
an energy marketing joint venture with, PanEnergy Corporation.
This joint venture will form the third largest gas marketing
operation in North America with sales of over 7 billion cubic feet
of natural gas per day."
"We have also announced several developments around the world that
are consistent with one of our primary upstream goals, to
profitably grow production and reserves. Since the beginning of
the year, we have: (1) completed a successful exploration bid for
the 445,000 acre La Ceiba block located on the eastern shore of
Lake Maracaibo in Venezuela and signed exploration and
exploitation license contracts for two lots in Peru; (2) acquired
interests in five licenses awarded in Norway's 15th licensing
round; (3) proposed to make an offer to acquire Ampolex Limited,
an Australian exploration and producing company; (4) awarded
contracts for the engineering, procurement and construction of the
offshore pipeline and platform facilities and for the onshore
liquefied natural gas (LNG) plant at Ras Laffan, Qatar; and (5)
reached agreement on the principal terms under which we will
acquire a 25% interest in the Tengizchevroil joint venture in
Kazakstan. This interest will allow us to participate in
production from the giant Tengiz field which began producing in
1991. In Chemical, we have announced plans to increase worldwide
oriented polypropylene (OPP) manufacturing capacity by one
third."
Mr. Noto concluded, "Market fundamentals are likely to remain
volatile in the near term. Our strategies are designed to enhance
shareholder value by improving returns from our existing asset
base while pursuing profitable growth opportunities around the
world."
COMPARISON OF FIRST QUARTER 1996 WITH FIRST QUARTER 1995
The following comments address the operating performance of the
major business segments during the first quarter of 1996, as
compared with the same quarter of 1995:
. Exploration and Producing income of $512 million was $135
million higher.
In the United States, income was $155 million, up $73 million,
primarily resulting from higher crude oil and natural gas
prices, which were somewhat moderated by the impact of certain
opportunity losses on forward sales made as part of our risk
management strategy. This improvement was partially offset by
lower production volumes, primarily resulting from prior asset
disposals and from natural field declines.
International income of $357 million was $62 million higher,
principally due to higher prices, higher volumes and lower
exploration expenses resulting from timing of program execution.
Notably, Nigerian crude oil volumes were up 60 TBD (44%)
reflecting additional production from the Ubit field, due in
part to the absence of last years operational problems, and
other fields streamed in 1995. Natural gas production also
increased, particularly in Europe, due to the colder weather
this year and new production from three North Sea fields
streamed in the United Kingdom. This helped offset a decline in
U.K. natural gas prices.
Marketing and Refining income of $240 million was $94 million
higher.
United States income was $59 million this year versus breakeven
last year. The improvement reflects favorable expense
performance, 6% growth in auto gasoline and distillate sales to
trade and higher gross margins. These factors were partially
offset by higher scheduled and unscheduled refinery downtime.
The scheduled refinery downtime principally reflected
preparation at the Torrance refinery for the introduction of new
mandated gasoline formulations in the California market.
International income of $181 million was $35 million higher.
The improvement was mainly due to stronger refining margins,
lower expenses, ongoing business initiatives as well as higher
trade sales in the Asia-Pacific region. These favorable items
were partly offset by weaker marketing margins, notably in the
United Kingdom as a result of intense competitive pressures, and
in Japan stemming from the impending market deregulation of oil
product imports. In addition, earnings were unfavorably
impacted by a higher level of planned and unscheduled downtime
at several refineries.
. Chemical income of $70 million was $104 million lower. This
reflected a decline from last year's exceptionally strong
worldwide polyethylene resin margins, the expiration of the tax
holiday for our Yanpet petrochemicals joint venture in Saudi
Arabia, and the absence of income from divested businesses.
. Corporate and Other expense was $28 million compared with $4
million of income last year when we sold an office complex in
Arlington, Virginia. Corporate and Other also includes certain
nonrecurring, current period charges related to the
implementation of our restructuring programs.
. Net Financing Expense of $58 million was $7 million lower,
principally due to the favorable impact of lower average net
debt balances.
Capital and Exploration Expenditures for the first quarter of 1996
were estimated at $918 million, an increase of $100 million from
the comparable period last year.
Mobil's estimated Return on Average Shareholders' Equity for the
twelve months ended March 31, 1996, based upon reported income,
was 13.7%, compared with 13.5% for calendar year 1995. (On an
operating basis, excluding special items, returns were 16.4% and
16.2% for the same periods.) Estimated Return on Average Capital
Employed for the twelve months ended March 31, 1996, based upon
reported income, was 11.0% compared with 10.9% for calendar year
1995. (On an operating basis, excluding special items, returns
were 12.8% for both periods.)
Mobil's estimated Debt-to-capitalization Ratio was 28% at March
31, 1996 and 27% at December 31, 1995.
Common Stock Dividends were $.925 per share in the first quarter
of 1996, $.075 per share higher than first quarter 1995.
<TABLE>
Table 1
MOBIL CORPORATION
<CAPTION>
First Quarter
---------------------------
1995 1996 Incr/
INCOME ($MM) Act Est (Decr)
------ ------ -------
<S> <C> <C> <C>
Petroleum Operations
E&P: United States 82 155 73
International 295 357 62
------ ------ -------
Total E&P 377 512 135
M&R: United States - 59 59
International 146 181 35
------ ------ -------
Total M&R 146 240 94
------ ------ -------
Total Petroleum 523 752 229
Chemical 174 70 (104)
Corporate and Other (a) 4 (28) (32)
Net Financing Expense (65) (58) 7
------ ------ -------
Net Income 636 736 100
========== ====== ====== =======
COMMON SHARES OUTSTANDING (MM)
Average 395.8 394.5 (1.3)
End of Period 395.7 394.6 (1.1)
EARNINGS PER COMMON SHARE ($)
Based on Net Income (b) 1.57 1.83 0.26
DIVIDENDS
Common Stock
Total Paid ($MM) 337 365 28
Per Share ($) 0.85 0.925 0.075
Preferred Stock ($MM) 14 14 -
(a) Includes the results of Real Estate operations, Mining and Minerals
administrative expenses, and other corporate items.
(b) The earnings per common share calculation is based on income, less
preferred stock dividend requirements, divided by the weighted
average number of common shares outstanding.
</TABLE>
<TABLE>
Table 2
MOBIL CORPORATION
<CAPTION>
1995 by Quarter and Year 1996
INCOME ADJUSTED FOR ----------------------------------- ------
SPECIAL ITEMS ($MM) 1Q 2Q 3Q 4Q Year 1Q Est
----- ----- ----- ----- ------- ----
<S> <C> <C> <C> <C <C> <C>
Petroleum Operations
E&P: United States 82 109 46 95 332 155
International 295 266 256 248 1,065 357
----- ----- ----- ----- ------- ----
Total E&P 377 375 302 343 1,397 512
M&R: United States - 87 148 95 330 59
International 146 153 229 277 805 181
----- ----- ----- ----- ------- ------
Total M&R 146 240 377 372 1,135 240
----- ----- ----- ----- ------- ------
Total Petroleum 523 615 679 715 2,532 752
Chemical 174 186 179 140 679 70
Corp and Other (a) 4 (22) (37) (15) (70) (28)
Net Financing Expense (65) (73) (77) (80) (295) (58)
----- ----- ----- ----- ------- ------
Operating Income Before
Special Items 636 706 744 760 2,846 736
Special Items - (527) 42 15 (470) -
----- ----- ----- ----- ------- ------
Net Income 636 179 786 775 2,376 736
========== ===== ===== ===== ===== ======= ======
EARNINGS PER COMMON SHARE ($)
BASED ON:
Operating Income Before
Special Items (b) 1.57 1.75 1.85 1.89 7.06 1.83
Net Income (b) 1.57 0.42 1.95 1.93 5.87 1.83
(a) Includes the results of Real Estate operations, Mining and
Minerals, administrative expenses, and other corporate items.
(b) The earnings per common share calculation is based on income,
less preferred stock dividend requirements, divided by the
weighted average number of common shares outstanding.
</TABLE>
<TABLE>
Table 3
MOBIL CORPORATION
<CAPTION>
1995 by Quarter and Year 1996
SPECIAL ITEMS ----------------------------------- ------
AFFECTING INCOME ($MM) 1Q 2Q 3Q 4Q Year 1QEst
----- ----- ---- ----- ------- ------
<S> <C> <C> <C> <C> <C> <C>
E&P United States
Asset Sales - (22) - - (22) -
Asset Impairment - - - (366) (366) -
Restructuring - (30)(a) - (21) (51) -
E&P International
Asset Sales - - - 23 23 -
Asset Impairment - - - (121) (121) -
Tax Adjustment - - - 26 26 -
Restructuring - (25)(a) - (16) (41) -
M&R United States
Restructuring - (104)(b) - - (104) -
M&R International
LIFO/Oth. Inv. Adjustmen - - - (13) (13) -
Restructuring - (268)(c) - (48) (316) -
Property Writedowns - - (29) - (29) -
Chemical
Asset Sale - - - 501 501 -
Restructuring - (16)(a) - - (16) -
Corp/Other
Asset Sale - - - 74 74 -
Environmental - - - (24) (24) -
Restructuring - (62)(a) - - (62) -
Litigation Settlement - - 71 - 71 -
----- ----- ---- ----- ------- ------
Total Specials - (527) 42 15 (470) -
----- ----- ---- ----- ------- -----
(a) Staff redesign project.
(b) Includes $65 million for staff services redesign and $39
million for further restructuring of marketing and refining operations.
(c) Includes $88 million for staff services redesign and $180
million for European refining.
</TABLE>
<TABLE>
Table 4
MOBIL CORPORATION
<CAPTION>
First Quarter
-----------------------------
CAPITAL AND EXPLORATION 1995 1996 Incr/
EXPENDITURES ($MM) Act Est (Decr)
------- ------- -------
<S> <C> <C> <C>
Petroleum Operations
E&P: United States
Exploration Expenses 18 9 (9)
Other Expenditures 95 109 14
------- ------- -------
Total E&P--U.S. 113 118 5
International
Exploration Expenses 77 67 (10)
Other Expenditures 298 350 52
------- ------- -------
Total E&P--Int'l 375 417 42
------- ------- -------
Total E&P 488 535 47
M&R: United States 124 75 (49)
International 143 225 82
------- ------- -------
Total M&R 267 300 33
------- ------- -------
Total Petroleum 755 835 80
Chemical 40 52 12
Other 23 31 8
------- ------- -------
Total Mobil Corporation 818 918 100
======= ======= =======
OTHER FINANCIAL DATA ($MM)
Total Revenues 17,627 18,694 1,067
Depreciation, Depletion,
and Amortization 669 655 (14)
Income Taxes 594 786 192
AVERAGE U.S. PRICES
Crude ($/BBL) 14.28 15.84 1.56
NGL ($/BBL) 9.83 11.58 1.75
Natural Gas ($/MCF) 1.48 2.32 0.84
AVERAGE INT'L. PRICES
Crude ($/BBL) 16.65 18.57 1.92
Natural Gas ($/MCF) 2.48 2.51 0.03
</TABLE>
<TABLE>
Table 5
MOBIL CORPORATION
<CAPTION>
First Quarter
---------------------------
1995 1996 Incr/
OPERATING HIGHLIGHTS Act Est (Decr)
------ ------ -------
<S> <C> <C> <C>
NET PRODUCTION OF LIQUIDS (TBD)
United States 290 269 (21)
Canada 54 54 -
Indonesia 74 81 7
Nigeria 136 196 60
Norway 93 85 (8)
United Kingdom 78 67 (11)
Other 75 70 (5)
------ ------ -------
Total International 510 553 43
------ ------ -------
Worldwide 800 822 22
====== ====== =======
NET PRODUCTION OF NATURAL GAS (MMCFD)
United States 1,494 1,428 (66)
Canada 491 447 (44)
Germany 477 526 49
Indonesia 1,653 1,656 3
United Kingdom 733 909 176
Other 190 149 (41)
------ ------ -------
Total International 3,544 3,687 143
------ ------ -------
Worldwide 5,038 5,115 77
====== ====== =======
TOTAL NET
PRODUCTION (TBDOE) 1,695 1,731 36
====== ====== =======
NATURAL GAS SALES (MMCFD)
United States
Equity 1,900 1,729 (171)
Resale 1,799 1,118 (681)
------ ------ -------
Total United States 3,699 2,847 (852)
International 3,633 3,994 361
------ ------ -------
Worldwide 7,332 6,841 (491)
====== ====== =======
</TABLE>
<TABLE>
Table 6
MOBIL CORPORATION
<CAPTION>
First Quarter
---------------------------
1995 1996 Incr/
OPERATING HIGHLIGHTS Act Est (Decr)
------ ------ -------
<S> <C> <C> <C>
REFINERY RUNS (TBD)
Runs for and by Mobil
United States 904 877 (27)
Europe 419 309 (110)
Asia-Pacific 679 706 27
All Other 136 181 45
------ ------ -------
Total 2,138 2,073 (65)
Runs for Mobil by Others 10 9 (1)
------ ------ -------
Worldwide Runs for Mobil 2,148 2,082 (66)
====== ====== =======
PETROLEUM PRODUCT SALES (TBD)
United States
Automotive Gasoline
Sales to Trade 506 536 30
Supply/Other Sales 191 166 (25)
------ ------ -------
Total Automotive Sales 697 702 5
Distillates/Jet Fuel 350 364 14
Other 212 215 3
------ ------ -------
Total United States 1,259 1,281 22
Europe 757 736 (21)
Asia-Pacific 831 777 (54)
All Other 311 326 15
------ ------ -------
Worldwide 3,158 3,120 (38)
====== ====== =======
CHEMICAL SALES (MM LBS)
Worldwide Polyethylene Resin 567 641 74
CHEMICAL SALES BY PRODUCT CATEGORY ($MM)
Petrochemicals 751 518 (233)
Films Products 189 180 (9)
Chemical Products 33 28 (5)
Other Plastics 290 39 (251)
------ ------ -------
Total 1,263 765 (498)
====== ====== =======
</TABLE>
<PAGE>
Exhibit 99-2
Certain Petroleum Product Sales numbers in Table 6 of Mobil
Corporation's First Quarter Earnings release today were printed incorrectly.
The corrected numbers are marked with an asterisks.
<TABLE>
Table 6
MOBIL CORPORATION
<CAPTION>
First Quarter
-------------------------------
OPERATING HIGHLIGHTS 1995 1996 Incr/
Act Est (Decr)
----- ------ --------
<S> <C> <C> <C>
REFINERY RUNS (TBD)
Runs for and by Mobil
United States 904 877 (27)
Europe 419 309 (110)
Asia-Pacific 679 706 27
All Other 136 181 45
----- ------ -------
Total 2,138 2,073 (65)
Runs for Mobil by Others 10 9 (1)
----- ------ -------
Worldwide Runs for Mobil 2,148 2,082 (66)
----- ------ -------
PETROLEUM PRODUCT SALES
(TBD)
United States
Automotive Gasoline
Sales to Trade 506 536 30
Supply/Other Sales 191 166 (25)
----- ----- -------
Total Automotive Sales 697 702 5
Distillates/Jet Fuel 350 364 14
Other 212 215 3
------ ----- -------
Total United States 1,259 1,281 22
Europe 757 821 * 64 *
Asia-Pacific 831 819 * (12) *
All Other 311 379 * 68 *
----- ----- -------
WorldWide 3,158 3,300 * 142 *
===== ====== ======
CHEMICAL SALES (MM LBS)
Worldwide Polyethylene 567 641 74
Resin
CHEMICAL SALES ($MM)
BY PRODUCT CATEGORY ($MM)
Petrochemicals 751 518 (233)
Films Products 189 180 (9)
Chemical Products 33 28 (5)
Other Plastics 290 39 (251)
----- ----- --------
Total 1,263 765 (498)
===== ===== ======
</TABLE>
