PAGE 1
- -----------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 28, 1998
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>
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Item 5. Other Events
The Registrant hereby incorporates by reference herein the
information set forth in its News Release dated January 28, 1998,
a copy of which is annexed hereto as exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99. Mobil Corporation News Release dated January 28,
1998 reporting estimated earnings for the fourth
quarter and full year of 1997.
<PAGE>
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
REGISTRANT MOBIL CORPORATION
By /s/ Gordon G. Garney
NAME AND TITLE Gordon G. Garney, Senior Assistant Secretary
DATE January 28, 1998
<PAGE>
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EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
------- ----------------
99. Mobil Corporation, Electronic
News Release dated
January 28, 1998
Exhibit 99
MOBIL ANNOUNCES RECORD 1997 OPERATING EARNINGS OF $3,430 MILLION
Fairfax, VA, January 28, 1998 -- Mobil Corporation today reported estimated
fourth quarter 1997 operating earnings of $809 million. This is a decrease of
$70 million from the $879 million earned in the fourth quarter of 1996.
Operating earnings per common share were $1.01, compared with $1.10 in 1996.
On a reported basis, including special items, net income for the quarter was
$704 million, or $0.88 per share, up 5%, versus $676 million, or $0.84 per
share, last year.
Full year 1997 operating earnings were a record $3,430 million, up $333
million, or 11%, from last year. On a per share basis, operating earnings of
$4.30 were $0.44 higher than the $3.86 earned in 1996. Including special
items, full year net income was $3,272 million, or $4.10 per share, versus
$2,964 million, or $3.69 per share, last year.
In comparing full year 1997 operating earnings with 1996, Chairman and Chief
Executive Officer Lucio A. Noto said, "I am pleased to announce this is the
third consecutive year of record operating results, and a year in which we
made considerable progress toward achieving our long-term goals of $5 billion
in earnings by 2001 and averaging a 14% return on capital employed. The
increase in earnings was primarily due to self-help which netted over $200
million, including volume growth in all segments of the business, improved
performance, benefits from recently formed alliances and expense reduction
programs. The balance was due to a net improvement in industry fundamentals."
Noto continued, "Mobil also has a goal to provide returns to shareholders
which are in the first quartile versus other major oil companies over the long
term. In doing so, we seek to balance a disciplined level of investment in
long-term growth with an attractive dividend and share repurchases. Mobil's
recently announced 1998 investment spending budget of $5.9 billion is up about
13% from estimated 1997 spending of $5.2 billion, reflecting our excellent
portfolio of attractive opportunities, our strong balance sheet and confidence
in the future of our business. In 1997, Mobil also increased the dividend
payment for the tenth straight year, up 8% from the previous year. In
addition, share repurchases reduced common stock outstanding by over 4 million
shares.
"In the upstream, earnings exceeded last year's record, primarily due to a 4%
increase in worldwide production. Not only did we grow production, but new
reserve additions replaced 146% of this higher production level at a very
competitive cost. In the International area, we are now starting to realize
the benefits from our programs for growth in Nigeria, Equatorial Guinea,
Kazakhstan, South America and Qatar. In the U.S., after experiencing declines
for a number of years, production in the fourth quarter of 1997 was
essentially flat with the comparable period in 1996.
<PAGE>
"Downstream, Mobil's U.S. marketing and refining business also achieved record
earnings, reflecting improved margins and strong performance including higher
sales volumes. Initiatives in marketing such as Speedpass and On The Run
contributed to this growth. In International downstream, earnings were up in
Europe as a result of higher margins and the benefits of our alliance with BP.
Asia-Pacific held up fairly well despite the turmoil in the region; however,
margins have not yet recovered from the depressed levels experienced late in
the third quarter. In response to this, we have accelerated the pace of
initiatives to improve the profitability of our business in the region,
building on the strong position we already have. In this regard, we announced
a restructuring in Japan in the third quarter and have initiated a
restructuring of our Australian marketing operations.
"Chemical earnings improved by over 14%, reflecting higher volumes in all
sectors of the business, higher polyethylene margins and improved plant
performance."
Noto concluded, "Crude oil prices have weakened significantly in the first
quarter of 1998. Business fundamentals, as reflected by this recent price
decline, continue to be unpredictable in the near term. Additionally, the
recent events in Asia-Pacific are impacting worldwide supply/demand balances
for crude oil, products and petrochemicals. Despite these events, we remain
convinced that this is a growth area for the future. We have first class
facilities in Asia-Pacific and are focusing on improving their efficiencies.
In addition, we will be alert to attractive opportunities for new investment."
Fourth quarter 1997 net income was $704 million, an increase of $28 million
from 1996. Fourth quarter 1997 results included net special charges of $105
million -- primarily due to restructurings associated with the Mobil-BP
downstream alliance in Europe, as well as for a newly initiated restructuring
of our marketing operations in Australia, partly offset by gains on asset
sales and favorable inventory adjustments. Fourth quarter 1996 results
included net special charges of $203 million, consisting of restructuring
costs for the Mobil-BP alliance and a FAS 121 write-down in the U.S. upstream,
partly offset by several net favorable items (refer to Table 3).
Full year 1997 net income was $3,272 million, $308 million higher than the
$2,964 million earned in 1996. Net special charges in 1997 totaled $158
million, mainly for restructuring-related charges in International downstream,
partly offset by gains on asset sales and other items. Net income in 1996
included $133 million of net special charges, mainly for restructurings,
partly offset by gains on asset sales and favorable inventory adjustments
(refer to Table 3).
The following comments address the operating performance of the major business
segments during the full year and fourth quarter of 1997, as compared with the
same periods in 1996 (refer to Table 2):
<PAGE>
COMPARISON OF FULL YEAR 1997 WITH 1996
o Exploration and Producing earnings were a record $2,135 million in 1997,
$76 million higher than last year.
In the United States, earnings were $660 million, down $34 million,
reflecting the effects of lower volumes and lower crude oil prices. The
lower volumes were mainly due to natural field declines and the
carryover effect of 1996 asset sales, partly offset by the effects of
new capital programs. Earnings benefited from higher natural gas prices
and lower operating expenses.
International earnings of $1,475 million were $110 million higher,
principally due to higher production, up 10%, and higher natural gas
prices in Canada, partly offset by lower crude oil prices and higher
expenses for future growth.
o Marketing and Refining earnings of $1,311 million were $260 million
higher than last year.
United States earnings were a record $562 million, $190 million higher
than 1996. This year's results benefited from higher sales volumes,
excellent refinery performance and higher margins.
International earnings of $749 million were up $70 million. In Europe,
results improved primarily due to benefits from the Mobil-BP European
alliance and stronger integrated margins. These gains were partly
offset by lower margins in Asia-Pacific.
o Chemical earnings of $350 million were $44 million higher than 1996,
primarily reflecting higher polyethylene margins, improved performance and
higher volumes in all sectors of the business. These factors were partly
offset by lower aromatics margins.
o Corporate and Financing expense was $366 million, $47 million higher
than the comparable period last year, primarily reflecting a number of
one-time charges partly offset by lower interest expense resulting from
lower average net debt balances.
COMPARISON OF FOURTH QUARTER 1997 WITH FOURTH QUARTER 1996
o Exploration and Producing fourth quarter 1997 earnings were $543
million, $112 million lower than last year's fourth quarter.
In the United States, earnings were $186 million, down $34 million, as
significantly lower prices for crude oil were partly offset by higher
natural gas prices.
<PAGE>
International earnings of $357 million were $78 million lower,
principally due to lower prices for crude oil and natural gas and
higher expenses for future growth, partly offset by the benefits from
higher crude oil production. The growth in production was largely due
to increased production from West Africa and the streaming of the
Hibernia field in Canada.
o Marketing and Refining earnings of $292 million were $64 million higher
than fourth quarter 1996.
United States reported record fourth quarter earnings of $170 million,
up $109 million from last year. The strong performance was driven by a
number of factors, including higher industry margins that benefited from
falling crude oil prices, increased gasoline sales resulting from growth
initiatives and excellent performance. Additionally, the U.S. refining
system benefited from widening light versus heavy crude oil spreads due
to its strong capability to process heavy crudes.
International earnings of $122 million were $45 million lower than in
1996, primarily due to lower income in Asia-Pacific resulting from
generally weak business conditions throughout the region, and certain
one-time items. Partly offsetting these factors were higher earnings
in Europe reflecting benefits from the Mobil-BP alliance and higher
retail fuels margins.
o Chemical earnings of $72 million were $9 million lower than last year's
fourth quarter, as the absence of a 1996 tax benefit and certain 1997
nonrecurring joint venture-related costs were only partly offset by the
effects of higher margins for polyethylene and aromatics and higher
sales volumes.
o Corporate and Financing expense was $98 million, $13 million higher than
the comparable period last year, primarily due to the timing of expenses
and certain one-time charges, partly offset by lower interest expense
resulting from lower average net debt balances.
Total Investment Spending for the fourth quarter of 1997 was estimated at
$1,790 million, a decrease of $7 million from the comparable period last year.
For full year 1997, total investment spending was estimated at $5,227 million,
compared with $7,019 million for full year 1996. Last year's spending was
higher due to the acquisitions of Ampolex and an interest in the Tengiz field
in Kazakhstan. Investment spending for 1998 is projected to be $5.9 billion,
with an emphasis on upstream projects and international areas.
Mobil's estimated Return on Average Shareholders' Equity for calendar year
1997, based upon net income, was 17.0%, compared with 16.0% for calendar year
1996. (On an operating basis, excluding special items, returns were 17.8%
and 16.7% forthe same periods.) Estimated Return on Average Capital
Employed for calendar year
<PAGE>
1997, based upon net income, was 13.4%, compared with 12.7% for calendar year
1996. (On an operating basis, excluding special items, returns were 14.0% and
13.2% for the same periods.)
Mobil's estimated Debt-to-capitalization Ratio was 25% at December 31, 1997,
compared with 29% at December 31, 1996. The reduction from 1996 reflects
lower debt levels resulting from strong earnings, the continuing sale of
noncore assets and reduced working capital requirements, partly offset by the
impact of net share repurchases.
Common Stock Dividends were $0.53 per share in the fourth quarter of 1997 and
$2.12 per share for full year 1997, $0.03 and $0.1575 per share higher than
the comparable periods in 1996. Per share amounts for all periods reflect the
two-for-one stock split which had a record date of May 20, 1997.
Estimates of key financial and operating data are shown on the attached
tables.
<TABLE>
Table 1
MOBIL CORPORATION
<CAPTION>
INCOME ($MM) Fourth Quarter Twelve Months
-------------------- --------------------
1996 1997 Incr/ 1996 1997 Incr/
Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Petroleum Operations
E&P: United States 181 186 5 737 697 (40)
International 409 398 (11) 1,372 1,512 140
------ ------ ------ ------ ------ ------
Total Exploration & Producing 590 584 (6) 2,109 2,209 100
M&R: United States 96 160 64 407 542 135
International (6) (14) (8) 506 482 (24)
------ ------ ------ ------ ------ ------
Total Marketing & Refining 90 146 56 913 1,024 111
------ ------ ------ ------ ------ ------
Total Petroleum 680 730 50 3,022 3,233 211
Chemical 81 72 (9) 306 403 97
Corporate and Financing (a) (85) (98) (13) (364) (364) -
------ ------ ------ ------ ------ ------
Net Income 676 704 28 2,964 3,272 308
======= ===== ====== ====== ===== ===== =====
COMMON SHARES OUTSTANDING (MM)
Average (b) 787.8 784.3 (3.5) 788.3 786.3 (2.0)
End of Period (b) - - - 787.6 783.4 (4.2)
NET INCOME PER
COMMON SHARE ($)(b)(c) 0.84 0.88 0.04 3.69 4.10 0.41
Assuming dilution (b)(d) 0.82 0.86 0.04 3.61 4.00 0.39
DIVIDENDS
Common Stock
Total Paid ($MM) 394 416 22 1,547 1,667 120
Per Share ($) (b) 0.50 0.53 0.03 1.963 2.12 0.157
Preferred Stock ($MM) 14 13 (1) 54 52 (2)
(a) Includes the results of Real Estate operations and Mining and Minerals
(substantially all of these busi-nesses were sold in 1996), corporate
administrative expenses, net financing expense and other items.
(b) Shares outstanding and per share amounts reflect the two-for-one stock
split which had a record date of May 20, 1997. Prior year shares and per
share amounts have been restated on a comparable basis.
(c) The net income per common share calculation is based on income, less
preferred stock dividend requirements, divided by the weighted average
number of common shares outstanding.
(d) Net income per common share assuming dilution includes the dilutive
effects of stock options and con-vertible preferred stock.
</TABLE>
<TABLE>
Table 2
MOBIL CORPORATION
<CAPTION>
Fourth Quarter Twelve Months
-------------------- --------------------
INCOME ADJUSTED FOR SPECIAL 1996 1997 Incr/ 1996 1997 Incr/
ITEMS ($MM) Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Petroleum Operations
E&P: United States 220 186 (34) 694 660 (34)
International 435 357 (78) 1,365 1,475 110
------ ------ ------ ------ ------ ------
Total Exploration & Producing 655 543 (112) 2,059 2,135 76
M&R: United States 61 170 109 372 562 190
International 167 122 (45) 679 749 70
------ ------ ------ ------ ------ ------
Total Marketing & Refining 228 292 64 1,051 1,311 260
------ ------ ------ ------ ------ ------
Total Petroleum 883 835 (48) 3,110 3,446 336
Chemical 81 72 (9) 306 350 44
Corporate and Financing (a) (85) (98) (13) (319) (366) (47)
------ ------ ------ ------ ------ ------
Operating Income Before
Special Items 879 809 (70) 3,097 3,430 333
Special Items (203) (105) 98 (133) (158) (25)
------ ------ ------ ------ ------ ------
Net Income 676 704 28 2,964 3,272 308
======= ============= ======= ============= =======
EARNINGS PER COMMON SHARE ($)
BASED ON:
Operating Earnings Before
Special items (b) (c) 1.10 1.01 (0.09) 3.86 4.30 0.44
Net Income (b)(c) 0.84 0.88 0.04 3.69 4.10 0.41
Net Income - Assuming
dilution (b)(d) 0.82 0.86 0.04 3.61 4.00 0.39
(a) Includes the results of Real Estate operations and Mining and Minerals
substantially all of these busi-nesses were sold in 1996), corporate
administrative expenses, net financing expense and other items.
(b) Per share amounts reflect the two-for-one stock split which had a record
date of May 20, 1997. Prior year per share amounts have been restated on
a comparable basis.
(c) The earnings per common share calculation is based on income, less
preferred stock dividend requirements, divided by the weighted average
number of common shares outstanding.
(d) Net income per common share assuming dilution includes the dilutive
effects of stock options and con-vertible preferred stock.
</TABLE>
<TABLE>
Table 3
MOBIL CORPORATION
<CAPTION>
1996 by Quarter and Year 1997 by Quarter and Year
SPECIAL ITEMS ------------------------- --------------------------
AFFECTING INCOME($MM) 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
Act Act Act Est Est
---- ---- ---- --- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
E&P United States
Asset Sales - - 82 37 119 - - 53 - 53
Asset Impairment - - - (69) (69) - - - - -
Restructuring - - - (7) (7) - - - - -
Litigation - - - - - - - (12) - (12)
EmployeePerformanceAward- - - - - - - (4) - (4)
E&P International
Asset Sales - - 33 (21) 12 - - - 41 41
Restructuring - - - (5) (5) - - - - -
Empl.Perform. Award - - - - - - - (4) - (4)
M&R United States
Asset Impairment - - - - - - - - (18) (18)
LIFO/Other Inv. Adj. - - - 35 35 - - - 8 8
Empl.Perform. Award - - - - - - - (10) - (10)
M&R International
LIFO/Other Inv. Adj. - - - 8 8 - - - 12 12
Restructuring
Mob-BPEuropeImplement. - - - (154) (154)(18) (20) (11) (20) (69)
Mob.-BP Eur.Lube Ref. - - - - - - - - (82) (82)
Japan - - - - - - - (61) - (61)
Australia - - - - - - - - (46) (46)
Other - - - (27) (27) - - - - -
Empl.Perform. Award - - - - - - - (21) - (21)
Chemical
Asset Sale - - - - - - - 48 - 48
Litigation Settlement - - - - - - - 10 - 10
Empl.Perform. Award - - - - - - - (5) - (5)
Corporate and Financing
Asset Sales - - 14 16 30 - - 39 - 39
SRP Implementation (a) - (31) (28) (16)(75) - - - - -
Litigation - - - - - - - (31) - (31)
Employ.Perform. Award - - - - - - - (6) - (6)
---- ---- ---- ---- --- ----- ----- ----- -----
Total Special Items - (31) 101 (203) (133) (18) (20) (15) (105)(158)
==== ==== ==== ==== ==== === ==== ===== ==== ====
(a) Staff Redesign Project (SRP).
</TABLE>
<TABLE>
Table 4
MOBIL CORPORATION
<CAPTION>
Fourth Quarter Twelve Months
----------------------- ------------------------
INVESTMENT SPENDING ($MM) 1996 1997 Incr/ 1996 1997 Incr/
Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
Capital and Exploration Expenditures
Petroleum Operations
<S> <C> <C> <C> <C> <C> <C>
Exploration & Producing
United States 189 166 (a) (23) 556 491 (a) (65)
International 798 986 188 3,870 (b)2,795 (1,075)
------ ------ ------ ------ ------ ------
Total E&P 987 1,152 165 4,426 3,286 (1,140)
------ ------ ------ ------ ------ ------
Marketing & Refining
United States 142 191 49 403 415 12
International 421 194 (a) (227) 1,151 545 (a) (606)
------ ------ ------ ------ ------ ------
Total M&R 563 385 (178) 1,554 960 (594)
------ ------ ------ ------ ------ ------
Total Petroleum 1,550 1,537 (13) 5,980 4,246 (1,734)
Chemical 116 105 (11) 339 315 (24)
Other (10) 11 21 42 49 7
------ ------ ------ ------ ------ ------
Total Capital and Exploration 1,656 1,653 (3) 6,361 4,610 (1,751)
Expenditures
Cash Investments in Equity 141 137 (a) (4) 658 617 (a) (41)
Companies ------ ------ ------ ------ ------ ------
Total Investment Spending 1,797 1,790 (7) 7,019 5,227 (1,792)
======= ======= ====== ====== ======= =======
Memo:
Exploration expenses charged to income, included above
United States 37 42 5 76 70 (6)
International 184 183 (1) 436 417 (19)
------ ------ ------ ----- ------ ------
Total Exploration Expenses 221 225 4 512 487 (25)
======= ======= ====== ====== ======= =======
OTHER FINANCIAL DATA ($MM)
Total Revenues 22,957 16,332(a) (6,625) 81,503 65,709(a)(15,794)
Income Taxes 720 678 (42) 3,147 3,054 (93)
AVERAGE U.S. PRICES
Crude ($/BBL)(c) 21.00 17.21 (3.79) 18.54 17.67 (0.87)
NGL ($/BBL) 18.83 11.94 (6.89) 13.16 11.96 (1.20)
Natural Gas ($/MCF) 2.58 2.77 0.19 2.17 2.38 0.21
AVERAGE INT'L. PRICES
Crude ($/BBL) 23.40 18.42 (4.98) 20.81 18.94 (1.87)
Natural Gas ($/MCF) 2.97 2.62 (0.35) 2.66 2.72 0.06
(a) Includes impact of equity accounting for E&P California alliance with
Shell and M&R alliance with BP in Europe.
(b) Includes $1,394 million for the Ampolex acquisition.
(c) Excludes the impact of West Coast realizations from June 1997 forward due
to the implementation of the E&P California alliance with Shell. Prior
year amounts have been restated on the same basis.
</TABLE>
<TABLE>
Table 5
MOBIL CORPORATION
<CAPTION>
Fourth Quarter Twelve Months
---------------------- ----------------------
1996 1997 Incr/ 1996 1997 Incr/
OPERATING HIGHLIGHTS Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET PRODUCTION OF LIQUIDS (TBD)
United States 240 247 7 262 244 (18)
Australia 61 41 (20) 42 39 (3)
Canada 47 57 10 50 49 (1)
Equatorial Guinea 25 51 26 8 37 29
Indonesia 56 35 (21) 66 46 (20)
Kazakhstan 38 34 (4) 18 36 18
Nigeria 227 266 39 209 253 44
Norway 82 81 (1) 83 79 (4)
United Kingdom 75 79 4 65 76 11
Middle East/Other 55 69 14 51 69 18
------ ------ ------ ------ ------ ------
Total International 666 713 47 592 684 92
------ ------ ------ ------ ------ ------
Worldwide 906 960 54 854 928 74
======= ======= ====== ======= ======= =======
NET PRODUCTION OF NATURAL GAS (MMCFD)
United States 1,229 1,173 (56) 1,333 1,160 (173)
Canada 398 467 69 416 397 (19)
Germany 335 481 146 463 455 (8)
Indonesia 1,847 1,531 (316) 1,556 1,571 15
United Kingdom 704 693 (11) 618 668 50
Other 388 315 (73) 201 304 103
------ ------ ------ ------ ------ ------
Total International 3,672 3,487 (185) 3,254 3,395 141
------ ------ ------ ------ ------ ------
Worldwide 4,901 4,660 (241) 4,587 4,555 (32)
======= ======= ====== ======= ======= =======
TOTAL NET
PRODUCTION (TBDOE) 1,794 1,804 10 1,685 1,753 68
======= ======= ====== ======= ======= =======
</TABLE>
<TABLE>
Table 6
MOBIL CORPORATION
<CAPTION>
Fourth Quarter Twelve Months
---------------------- -----------------------
1996 1997 Incr/ 1996 1997 Incr/
OPERATING HIGHLIGHTS Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
REFINERY RUNS (TBD)
Runs for Mobil by Mobil
United States (a) 941 977 36 921 956 35
Europe (b) 318 351 33 324 369 45
Asia-Pacific 702 736 34 705 677 (28)
All Other 186 186 - 183 189 6
------ ------ ------ ------ ------ ------
Total 2,147 2,250 103 2,133 2,191 58
Runs for Mobil by Others 8 - (8) 9 - (9)
------ ------ ------ ------ ------ ------
Worldwide Runs for Mobil 2,155 2,250 95 2,142 2,191 49
======= ============== ======= ======= =======
PETROLEUM PRODUCT SALES (TBD)
United States
Automotive Gasoline
Sales to Trade 557 569 12 553 568 15
Supply/Other Sales 195 231 36 214 250 36
------ ------ ------ ------ ------ ------
Total Automotive Sales 752 800 48 767 818 51
Distillates/Jet Fuel 407 409 2 355 370 15
Other 272 254 (18) 240 246 6
------ ------ ------ ------ ------ ------
Total United States 1,431 1,463 32 1,362 1,434 72
Europe (b) 779 (c) 621 (158) 804 (c) 678 (126)
Asia-Pacific 837 826 (11) 800 815 15
All Other 405 438 33 379 410 31
------ ------ ------ ------ ------ ------
Total International 2,021 1,885 (136) 1,983 1,903 (80)
------ ------ ------ ------ ------ ------
Worldwide 3,452 3,348 (104) 3,345 3,337 (8)
======= ============== ======= ======= =======
CHEMICAL SALES (MM LBS)
Worldwide Polyethylene Resi 611 666 55 2,573 2,765 192
Worldwide Paraxylene 284 464 180 1,065 1,638 573
CHEMICAL SALES BY PRODUCT CATEGORY ($MM)
Petrochemicals 455 526 71 1,876 2,151 275
Films Products 190 158 (32) 766 706 (60)
Chemical Products 35 36 1 126 136 10
Plastics/Other - - - 78 - (78)
------ ------ ------ ------ ------ ------
Total 680 720 40 2,846 2,993 147
======= ============== ======= ======= =======
(a) Includes Mobil's share of the Chalmette joint venture with Lagoven which
commenced in November, 1997.
(b) Includes Mobil's share of the Downstream alliance with BP which commenced
in late 1996.
(c) Fourth quarter and full-year 1996 sales have been restated.
</TABLE>
