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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996 or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-170-2
AMOCO CORPORATION
(Exact name of registrant as specified in its charter)
INDIANA 36-1812780
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 EAST RANDOLPH DRIVE, CHICAGO, ILLINOIS 60601
(Address of principal executive offices) (Zip Code)
312-856-6111
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address, and former fiscal year, if
changed since last report)
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
Number of shares outstanding as of June 30, 1996--497,137,345
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PART I-- FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Income
(millions of dollars)
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1995 1996 1995
Revenues:
Sales and other operating
revenues................. $ 7,831 $ 6,814 $15,108 $13,434
Consumer excise taxes...... 844 835 1,663 1,643
Other income............... 90 64 208 200
Total revenues........... 8,765 7,713 16,979 15,277
Costs and Expenses:
Purchased crude oil,
natural gas, petroleum
products and merchandise. 4,399 3,589 8,274 7,087
Operating expenses......... 1,207 1,103 2,290 2,224
Petroleum exploration
expenses, including
exploratory dry holes.... 131 116 251 231
Selling and administrative
expenses................. 588 542 1,123 1,013
Taxes other than income
taxes.................... 1,040 1,009 2,067 2,011
Depreciation, depletion,
amortization, and retire-
ments and abandonments... 553 524 1,091 1,058
Interest expense........... 45 89 105 175
Total costs and expenses. 7,963 6,972 15,201 13,799
Income before income taxes... 802 741 1,778 1,478
Income taxes................. 202 208 450 422
Net income................... $ 600 $ 533 $ 1,328 $ 1,056
Weighted average number of
shares of common stock
outstanding (in thousands). 497,071 494,795 496,874 495,587
Per Share Data (Based on weighted
average shares outstanding):
Net income................... $ 1.20 $ 1.08 $ 2.67 $ 2.13
Cash dividends per share..... $ .65 $ .60 $ 1.30 $ 1.20
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Consolidated Statement of Financial Position
(millions of dollars)
June 30, Dec. 31,
ASSETS 1996 1995
Current Assets:
Cash........................................ $ 211 $ 182
Marketable securities -- at cost (all
corporate except $71 at June 30, 1996,
and $184 at December 31, 1995, which
represent state and municipal securities). 621 1,212
Accounts and notes receivable (less
allowances of $17 at June 30, 1996,
and $16 at December 31, 1995)............. 3,186 3,332
Inventories
Crude oil and products.................... 875 750
Materials and supplies.................... 367 291
Prepaid expenses and income taxes........... 806 723
Total current assets...................... 6,066 6,490
Investments and Other Assets:
Investments and related advances............ 748 654
Long-term receivables and other assets...... 872 655
1,620 1,309
Properties--at cost, less accumulated depre-
ciation, depletion and amortization of
$27,100 at June 30, 1996, and $26,531
at December 31, 1995 (the successful
efforts method of accounting is followed
for costs incurred in oil and gas producing
activities)................................. 22,771 22,046
Total assets.............................. $30,457 $29,845
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term obligations.... $ 84 $ 341
Short-term obligations...................... 1,141 735
Accounts payable............................ 2,560 2,822
Accrued liabilities......................... 1,000 989
Taxes payable (including income taxes)...... 817 887
Total current liabilities................. 5,602 5,774
Long-Term Debt................................ 3,987 3,962
Deferred Credits and Other Non-Current Liabilities:
Income taxes................................ 2,828 2,745
Other....................................... 2,378 2,401
5,206 5,146
Minority Interest............................. 113 115
Shareholders' Equity:
Common stock (authorized 800,000,000 shares;
issued and outstanding at June 30,
1996 --497,137,345; December 31, 1995
--496,402,697 shares)..................... 2,624 2,590
Earnings retained and invested in the
business.................................. 12,988 12,295
Pension liability adjustment................ (49) (49)
Foreign currency translation adjustment..... (14) 12
15,549 14,848
Total liabilities and shareholders' equity $30,457 $29,845
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Consolidated Statement of Cash Flows
(millions of dollars)
Six Months Ended
June 30,
1996 1995
Cash Flows from Operating Activities:
Net income.................................. $ 1,328 $ 1,056
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, amortization,
and retirements and abandonments........ 1,091 1,058
Decrease in receivables................... 48 71
Increase in inventories................... (138) (99)
Decrease in payables and accrued
liabilities............................. (292) (493)
Deferred taxes and other items............ (267) (81)
Net cash provided by operating activities. 1,770 1,512
Cash Flows From Investing Activities:
Capital expenditures........................ (1,707) (1,293)
Proceeds from dispositions of property
and other assets.......................... 286 166
Net investments, advances and business
acquisitions.............................. (600) (148)
Proceeds from sales of investments.......... 100 -
Other....................................... 19 11
Net cash used in investing activities..... (1,902) (1,264)
Cash Flows from Financing Activities:
New long-term obligations................... 82 86
Repayment of long-term obligations.......... (317) (113)
Cash dividends paid......................... (635) (596)
Issuances of common stock................... 34 27
Acquisitions of common stock................ - (465)
Increase in short-term obligations.......... 406 24
Net cash used in financing activities..... (430) (1,037)
Decrease in Cash and Marketable Securities.... (562) (789)
Cash and Marketable Securities-
Beginning of Period......................... 1,394 1,789
Cash and Marketable Securities-End of Period.. $ 832 $ 1,000
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Basis of Financial Statement Preparation
The consolidated financial statements contained herein are
unaudited and have been prepared from the books and records of
Amoco Corporation ("Amoco" or the "Corporation"). In the opinion
of management, the consolidated financial statements reflect all
adjustments, consisting of only normal recurring adjustments,
necessary for a fair statement of the results for the interim
periods. The consolidated financial statements have been prepared
in accordance with the instructions to Form 10-Q and, therefore,
do not include all information and notes necessary for a complete
presentation of results of operations, financial position and
cash flows in conformity with generally accepted accounting
principles.
Item 2. Management's Discussion and Analysis
Results of Operations
Six Months 1996 vs. Six Months 1995
Net income for the first six months of 1996 amounted to $1,328
million, or $2.67 per share. Net income for the first six months
of 1995 amounted to $1,056 million, or $2.13 per share. The
increase in earnings for the first six months of 1996 primarily
reflected higher energy prices, partially offset by lower
chemical and petroleum products margins. Included in first-half
1996 results were gains of $56 million after tax on certain
Canadian asset dispositions.
Sales and other operating revenues totaled $15.1 billion for the
first six months of 1996, 12 percent higher than the $13.4
billion reported in the corresponding 1995 period. Refined
products, crude oil and natural gas revenues increased 15, 17 and
31 percent, respectively, primarily on the strength of higher
prices. Chemical product revenues increased two percent resulting
from increased sales volumes.
Purchases of crude oil, natural gas, petroleum products and
merchandise totaled $8.3 billion for the first six months of
1996, 17 percent higher than 1995's first six months. The
increase was primarily attributable to higher crude oil volumes
and prices and increases in natural gas prices.
Petroleum exploration expenses of $251 million in the first six
months of 1996 increased nine percent compared with the prior-
year period, primarily reflecting higher geological and
geophysical expenses overseas.
Selling and administrative expenses for the first six months of
$1.1 billion compared with $1.0 billion for the comparable 1995
period. Included in selling and administrative expenses were
ongoing reorganization costs of $68 million before tax, $8
million higher than 1995, mainly related to system redesign,
relocation and new process development. Also reflected in first
six-month 1996 results were unfavorable before-tax currency
effects of $18 million, compared with favorable currency effects
of $14 million for the corresponding 1995 period.
Interest expense of $105 million for the first six months of
1996, compared with $175 million for the corresponding 1995
period, decreased primarily as a result of lower interest
relating to revised estimates of tax obligations.
Second Quarter 1996 vs. Second Quarter 1995
Second-quarter 1996 net income totaled $600 million, or $1.20 per
share, an increase of 13 percent over the $533 million, or $1.08
per share, reported in the second quarter of 1995. The
improvement resulted from higher energy prices and an increase in
production in the exploration and production ("E&P") segment,
which more than offset lower petroleum products earnings, and a
decline from very strong chemical margins of a year ago.
Sales and other operating revenues totaled $7.8 billion for the
second quarter of 1996, 15 percent higher than the $6.8 billion
reported in the second quarter of 1995. The increase resulted
from
higher prices for refined products, crude oil and natural gas,
and higher chemical product sales volumes.
Purchases of crude oil, natural gas, petroleum products and
merchandise totaled $4.4 billion for the second quarter of 1996,
23 percent higher than the prior-year quarter. The increase
reflected higher prices and volumes for crude oil and higher
prices for natural gas.
Selling and administrative expenses for the second quarter of
1996 totaled $588 million, nine percent above the $542 million
for the second quarter of 1995, reflecting ongoing reorganization
costs of $40 million before tax, compared with $34 million in
1995. Also included in the second quarter of 1996 results were
unfavorable before-tax currency effects of $19 million, $14
million above the second quarter of 1995.
Interest expense of $45 million for the second quarter of 1996
decreased by $44 million from the second quarter of 1995,
reflecting lower interest on tax obligations.
For the 12 months ended June 30, 1996, return on average
shareholders' equity was 14.2 percent compared with 14.3 percent
for the 12 months ended June 30, 1995. Return on average capital
employed was 11.1 percent for the 12-month period ended June 30,
1996, compared with 11.5 percent for the corresponding prior-year
period.
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Results by Industry Segment
Six Months Second Quarter
(millions of dollars) 1996 1995 1996 1995
Exploration and Production
United States.......... $ 515 $ 364 $ 234 $ 189
Canada................. 189 79 55 33
Overseas............... 206 148 85 61
Subtotal............... 910 591 374 283
Petroleum Products....... 108 123 90 104
Chemicals................ 413 479 173 246
Corporate and
Other Operations*...... (103) (137) (37) (100)
Net Income............... $1,328 $1,056 $ 600 $ 533
* Corporate and other operations include net interest and
general corporate expenses as well as the results of
investments in technology companies, real estate interests
and other activities.
Six Months 1996 vs. Six Months 1995
Exploration and Production - U. S.
U.S. E&P operations earned $515 million in the first six months
of 1996 compared with $364 million for the similar 1995 period.
The increase resulted from higher energy prices and an increase
in natural gas production.
Amoco's natural gas prices for the first six months of 1996
averaged approximately $1.70 per thousand cubic feet ("mcf"),
$.30 per mcf above the first six months of 1995. Amoco's average
crude oil prices were up about $2.15 per barrel and averaged
approximately $18.50 per barrel for the first six months of 1996.
Natural gas production averaged 2.6 billion cubic feet per day,
an increase of six percent compared with the prior-year six
months. Crude oil and natural gas liquids ("NGL") production
averaged 293,000 barrels per day, the same as the first six
months of 1995, as higher NGL production offset declining crude
oil production.
Exploration and Production - Canada
Canadian earnings, which include supply and marketing of NGL,
totaled $189 million for the first six months of 1996, compared
with $79 million for the first six months of 1995. The increase
reflected higher energy prices partially offset by higher
exploration expenses and lower crude and NGL production. Also
impacting 1996 six-month earnings were after-tax gains of $56
million on asset dispositions, including the sale of Amoco's
remaining investment in Crestar Energy Inc.
Amoco's Canadian natural gas prices averaged approximately $1.10
per mcf for the first six months of 1996 compared with about $.90
per mcf for the prior-year period. Average crude oil prices for
the first six months of 1996 increased almost $1.25 per barrel,
averaging approximately $16.75 per barrel for the first six
months of 1996. Natural gas production during the first six
months of 1996 averaged 830 million cubic feet per day, about two
percent higher than the prior-year period. Crude oil and NGL
production averaged 61,000 barrels per day during the first six
months of 1996, a decrease of nine percent from a year ago, in
part reflecting divestments.
Exploration and Production - Overseas
Overseas E&P earnings were $206 million for the first six months
of 1996, an increase of $58 million over 1995's first six-months
results. Higher crude oil prices and higher crude oil and natural
gas production were the primary factors accounting for the
improvement.
Crude oil and NGL production averaged 301,000 barrels per day for
the first six months of 1996, compared with 295,000 barrels per
day for the similar 1995 period, reflecting start-up of the
Liuhua field in the South China Sea in late March. Natural gas
production averaged 1.0 billion cubic feet per day, an increase
of seven percent over the first six months of 1995, primarily
reflecting higher European demand.
Petroleum Products
Petroleum Products activities earned $108 million for the first
six months of 1996, compared with $123 million for 1995,
reflecting lower refining margins, particularly for aromatics.
Partly offsetting were higher marketing margins.
During the first six months of 1996, U.S. refined product sales
averaged 1,168,000 barrels per day compared with 1,112,000
barrels per day for the prior year period. Refineries ran at 94
percent of rated capacity for the first six months of 1996,
compared with 89 percent for the corresponding 1995 period.
Chemicals
Chemical operations earned $413 million for the first six months
of 1996 compared with $479 million for the similar 1995 period.
The decrease in earnings primarily reflected lower margins for
olefins and purified terephthalic acid ("PTA"), the preferred raw
material for polyester. Also affecting earnings for the first six
months of 1996 were lower sales volumes for PTA, which were 3
percent below year-earlier levels.
Corporate and Other Operations
Corporate and other operations include net interest and general
corporate expenses as well as the results of investments in
technology companies, real estate interests and other activities.
Corporate and other operations reported net expenses after tax of
$103 million for the first six months of 1996, compared with
$137 million for the first six months of 1995. The decrease in
net expenses reflected lower corporate expenses, lower interest
on tax obligations and gains on asset dispositions, partly offset
by unfavorable currency effects.
Second Quarter 1996 vs. Second Quarter 1995
Exploration and Production - U.S.
U.S. E&P earnings were $234 million in the second quarter of 1996
compared with 1995 second-quarter earnings of $189 million. The
1996 increase of $45 million primarily reflected higher energy
prices.
Amoco's U.S. natural gas prices for the second quarter of 1996
averaged approximately $1.65 per mcf, $.30 per mcf above the
prior year quarter. Amoco's average crude oil prices were up
about $2.80 per barrel and averaged approximately $19.50 per
barrel for the quarter. Natural gas production increased six
percent to 2,559 million cubic feet per day for the second
quarter of 1996. Crude oil and NGL production was about the same
as the second quarter of 1995.
Exploration and Production - Canada
Canadian E&P operations, which include supply and marketing of
NGL, earned $55 million in the second quarter of 1996 compared
with $33 million for the second quarter of 1995. The increase
reflected higher energy prices, partially offset by higher
exploration expenses, and lower production partly due to
divestments.
Amoco's Canadian natural gas prices averaged approximately $1.05
per mcf for the second quarter of 1996, $.15 per mcf above the
prior year quarter. Average crude oil prices for the second
quarter of 1996 increased by over $2.50 per barrel compared with
the second quarter of 1995, averaging almost $19.15 per barrel
for the quarter. Natural gas production of 815 million cubic feet
per day was about three percent lower than the prior year period.
Crude oil and NGL production averaged 58,000 barrels per day,
compared with 62,000 barrels per day a year ago.
Exploration and Production - Overseas
Overseas E&P operations earned $85 million in the second quarter
of 1996 compared with $61 million for the second quarter of 1995.
Higher crude oil prices and start-up of production in the Liuhua
field were the primary factors accounting for the improvement.
Crude oil and NGL production averaged 310,000 barrels per day for
the second quarter 1996, and included production of 26,000
barrels per day from the Liuhua field. Natural gas production
increased four percent compared with the second quarter of 1995.
Petroleum Products
Petroleum Products activities earned $90 million during the
second quarter of 1996, compared with $104 million in the second
quarter of 1995, reflecting lower refining margins, particularly
in aromatics, which more than offset higher marketing margins.
During the second quarter of 1996, U.S. refined product sales
averaged 1,211,000 barrels per day compared with 1,133,000
barrels per day for the prior year period. Refineries ran at 97
percent of rated capacity for the second quarter, compared with
91 percent in the corresponding 1995 period.
Chemicals
Chemical operations earned $173 million in the second quarter of
1996, compared with $246 million for the second quarter of 1995.
The decrease in earnings for the second quarter of 1996 primarily
reflected lower olefins margins compared with high year-earlier
levels and lower PTA margins and volumes. PTA customers,
following a period of polyester overproduction and in
anticipation of new PTA capacity, reduced PTA inventories
adversely impacting results.
Corporate and Other Operations
Corporate and other operations reported net expenses after tax of
$37 million for the second quarter of 1996 compared with the 1995
net expenses after tax of $100 million. The decrease reflected
lower corporate expenses, lower interest on tax obligations, and
gains on the disposition of non-core assets.
Outlook
The Corporation and the oil industry will continue to be affected
by the volatility of crude oil and natural gas prices. Also
affecting chemicals and petroleum products activities is the
overall industry product supply and demand balance. Amoco's
future performance is expected to continue to be impacted by
savings associated with changes in its organizational structure;
ongoing cost reduction programs; the divestment of marginal
properties and underperforming assets; application of new
technologies; and new governmental regulations.
Amoco's exploration efforts will continue to target those areas
that offer the most potential. Amoco will pursue areas to
capitalize on its natural gas resources and continue to expand
internationally. Amoco's E&P barrel-oil-equivalent production in
North America is expected to remain approximately at 1995 levels.
Outside North America, production from the Liuhua oil field in
the South China Sea, which came onstream in late March, should
benefit crude oil production by an average of approximately
30,000 barrels per day for the remainder of 1996. Overseas
natural gas production is expected to increase in 1996 compared
to 1995.
In the petroleum products sector, Amoco anticipates weak U.S.
refining margins in its marketing areas in the near term. Amoco's
marketing strategy will continue to emphasize brand product
quality and improve its position as a convenience retailer. Amoco
will continue to pursue additional cost reduction programs and
improved asset utilization.
In the chemical sector, while the near-term industry outlook is
continuing to soften for commodity chemicals, Amoco expects long-
term growth to exceed three percent, with a higher increase
anticipated in the Asia-Pacific region. PTA average annual growth
is expected to be seven percent over the next decade, with the
largest demand increase expected to be in the Asia-Pacific
region, while worldwide paraxylene ("PX") demand is expected to
grow about six percent per year. Amoco's wholly owned 500,000
metric tons-per-year PTA plant in Malaysia went onstream in the
second quarter of 1996. Also, Amoco recently added 350,000 metric
tons-per-year of PX capacity in Texas City, Texas.
Amoco continues to seek attractive opportunities worldwide and is
constantly reviewing strategic alternatives. Amoco will also
continue to evaluate and divest marginal properties and
underperforming assets. Amoco and Shell Oil Company signed a
letter of intent to form a limited partnership combining
exploration and production assets in the greater Permian Basin
area of west Texas and southeast New Mexico. Final agreement is
contingent on the successful completion of ongoing discussions
regarding design, management and operation of the company. Start
up of the partnership is expected in 1996.
In late June, a unit of Tenneco Corporation announced that it was
seeking to acquire Amoco Foam Products Company ("Amoco Foam") in
a transaction valued at approximately $310 million. Amoco Foam is
a leading manufacturer and marketer of polystyrene foam products,
with nine plants in the United States. In 1995, Amoco Foam
product revenues totaled $288 million.
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Liquidity and Capital Resources
Cash flows from operating activities for the first six months of
1996 amounted to $1,770 million compared with $1,512 million in
the prior-year period. Working capital was $464 million at June
30, 1996, compared with $716 million at December 31, 1995. The
Corporation's current ratio was 1.08 to 1 at June 30, 1996,
compared with 1.12 to 1 at year-end 1995. As a matter of policy,
Amoco practices asset and liability management techniques that
are designed to minimize its investment in non-cash working
capital. This does not impair operational flexibility since the
Corporation has ready access to both short- and long-term debt
markets.
Amoco's debt totaled $5.2 billion at June 30, 1996, compared with
$5.0 billion as of year-end 1995. Debt as a percentage of debt-
plus-equity was 25.0 percent at June 30, 1996, and 25.2 percent
at year-end 1995.
Amoco Corporation guarantees the public debt obligations of Amoco
Company. Amoco Corporation and Amoco Company guarantee the public
notes and debentures of Amoco Canada Petroleum Company Ltd.
("Amoco Canada") and Amoco Argentina Oil Company ("Amoco
Argentina").
The Corporation believes its strong financial position will
permit the financing of business needs and opportunities as they
arise. It is anticipated that ongoing operations will be financed
primarily by internally generated funds. Short-term obligations,
such as commercial paper borrowings, give the Corporation the
flexibility to meet short-term working capital and other
temporary requirements. At June 30, 1996, bank lines of credit
available to support commercial paper borrowings amounted to $500
million, all of which were supported by commitment fees.
The Corporation also may utilize its access to long-term debt
markets to finance profitable growth opportunities. A $500
million shelf registration statement for Amoco Company remains on
file with the Securities and Exchange Commission ("SEC") to
permit ready access to capital markets. In 1995, Amoco Argentina
filed a shelf registration with the SEC for $200 million in debt
securities, of which $100 million in debt securities were
subsequently issued. Amoco Corporation and Amoco Company
guarantee the securities issued under this registration
statement. Amoco Canada has a U.S. $225 million revolving 10-year
term facility, guaranteed by Amoco and Amoco Company, to be used
for general corporate purposes. Amoco Canada is charged a standby
fee for the facility, which has not been used.
On March 1, 1996, Albemarle Corporation's ("Albemarle") alpha-
olefins, poly alpha olefins and synthetic alcohol businesses were
purchased for approximately $500 million. The purchase involved
about 550 employees and assets in Texas and Belgium.
Capital and exploration expenditures, for the first six months of
1996 totaled $1,958 million, excluding the Albemarle acquisition,
compared with $1,524 million for the comparable 1995 period. The
increase over the first six months of 1995 reflected planned
increases in spending in growth areas. Approximately 71 percent
of the total 1996 expenditures has been spent in exploration and
production operations.
The Corporation has provided in its accounts for the reasonably
estimable future costs of probable environmental remediation
obligations relating to various oil and gas operations,
refineries, marketing sites and chemical locations, including
multiparty sites at which Amoco and certain of its subsidiaries
have been identified as potentially responsible parties by the
U.S. Environmental Protection Agency. Such estimated costs will
be refined over time as remedial requirements and regulations
become better defined. However, any additional environmental
costs cannot be reasonably estimated at this time due to
uncertainty of timing, the magnitude of contamination, future
technology, regulatory changes and other factors. Although future
costs could have a significant effect on the results of
operations in any one period, they are not expected to be
material in relation to Amoco's liquidity or consolidated
financial position. In total, the accrued liability represents a
reasonable best estimate of Amoco's remediation liability.
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PART II--OTHER INFORMATION
Item 1. Legal Proceedings
Reference is made to the description of the challenge by the
Internal Revenue Service ("IRS") of certain foreign income taxes
as credits against the Corporation's U.S. taxes that would
otherwise have been payable for the years 1980 through 1989 in
Part I, Item 3 of Amoco's 1995 Form 10-K and Part II, Item 1 of
Amoco's Form 10-Q for the quarter ended March 31, 1996. The Tax
Court's decision became final on July 16, 1996 and is subject to
appeal by the IRS until October 14, 1996. The Corporation
believes that the foreign income taxes have been reflected
properly in its U.S. federal tax returns. Consequently, this
dispute is not expected to have a material adverse effect on the
liquidity, results of operations or the consolidated financial
position of the Corporation.
Reference is made to the description of AMOCO CHEMICAL COMPANY,
et al. vs. CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON, et al. in
Part I, Item 3 of Amoco's 1995 Form 10-K. On June 4, 1996, a
California appellate court reversed the judgment in favor of
Amoco and remanded the case for a new trial. Accordingly, it is
impossible at this time to predict the ultimate outcome of the
case. However, it is not expected to have a material effect on
the liquidity or consolidated financial position of Amoco.
Fourteen proceedings instituted by governmental authorities are
pending or known to be contemplated against Amoco and certain of
its subsidiaries under federal, state or local environmental
laws, each of which could result in monetary sanctions in excess
of $100,000. No individual proceeding is, nor are the proceedings
as a group, expected to have a material adverse effect on Amoco's
liquidity, consolidated financial position or results of
operations. Amoco estimates that in the aggregate the monetary
sanctions reasonably likely to be imposed from these proceedings
amount to approximately $7.6 million.
Amoco has various other suits and claims pending against it among
which are several class actions for substantial monetary damages
which in Amoco's opinion are not meritorious. While it is
impossible to estimate with certainty the ultimate legal and
financial liability with respect to these other suits and claims,
Amoco believes that, while the aggregate amount could be
significant, it will not be material in relation to its liquidity
or its consolidated financial position.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
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Item 5. Other Information
Shown below is summarized financial information for Amoco's
wholly owned subsidiary, Amoco Company.
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1995 1996 1995
(millions of dollars)
Total revenues(including
excise taxes)........... $8,026 $7,195 $15,430 $13,934
Operating profit........ $ 803 $ 810 $ 1,702 $ 1,489
Net income.............. $ 510 $ 502 $ 1,108 $ 948
June 30, Dec. 31,
1996 1995
(millions of dollars)
Current assets................. $ 5,170 $ 5,303
Total assets................... $27,279 $26,326
Current liabilities............ $ 4,347 $ 4,578
Long-term debt................. $ 6,775 $ 6,785
Deferred credits............... $ 4,509 $ 4,397
Minority interest.............. $ 110 $ 110
Shareholder's equity........... $11,538 $10,456
Shown below is summarized financial information for Amoco's
wholly owned subsidiary, Amoco Canada.
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1995 1996 1995
(millions of dollars)
Revenues................ $1,008 $ 930 $2,041 $1,801
Net income.............. $ 54 $ (25) $ 147 $ (21)
June 30, Dec. 31,
1996 1995
(millions of dollars)
Current assets.................. $ 1,190 $ 1,252
Total assets.................... $ 4,350 $ 4,493
Current liabilities............. $ 2,215 $ 2,494
Non-current liabilities......... $ 2,370 $ 2,381
Shareholder's deficit........... $ (235) $ (382)
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Shown below is summarized financial information for
Amoco's indirectly wholly owned subsidiary, Amoco
Argentina.
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1995 1996 1995
(millions of dollars)
Revenues................ $ 79 $ 61 $154 $122
Net income.............. $ 29 $ 20 $ 56 $ 44
June 30, Dec. 31,
1996 1995
(millions of dollars)
Current assets.................. $ 62 $ 73
Total assets.................... $419 $389
Current liabilities............. $ 66 $ 49
Non-current liabilities......... $136 $113
Shareholder's equity............ $217 $227
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit
Number
12 Statement Setting Forth Computation of
Ratio of Earnings to Fixed Charges.
27 Financial Data Schedule.
(b) No reports on Form 8-K were filed during the quarter ended
June 30, 1996.
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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 thereunto duly authorized.
Amoco Corporation
(Registrant)
Date: August 12, 1996
Judith G. Boynton
Judith G. Boynton
Vice President and Controller
(Duly Authorized and Chief
Accounting Officer)
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EXHIBIT 12
AMOCO CORPORATION
______________________
STATEMENT SETTING FORTH COMPUTATION OF RATIO OF
EARNINGS TO FIXED CHARGES
(millions of dollars, except ratios)
Six
Months
Ended Year Ended December 31,
June 30,
1996 1995 1994 1993 1992 1991
Determination of Income:
Consolidated earnings
before income taxes
and minority interest.. $1,778 $2,404 $2,491 $2,506 $ 998 $2,035
Fixed charges expensed by
consolidated companies. 198 406 316 350 376 479
Adjustments for certain
companies accounted for
by the equity method... 25 25 7 11 28 20
Adjusted earnings plus
fixed charges.......... $2,001 $2,835 $2,814 $2,867 $1,402 $2,534
Determination of Fixed Charges:
Consolidated interest on
indebtedness (including
interest capitalized).. $ 155 $ 317 $ 288 $ 299 $ 333 $ 433
Consolidated rental
expense representative
of an interest factor.. 49 89 23 50 44 54
Adjustments for certain
companies accounted for
by the equity method... 5 6 5 8 20 24
Total fixed charges...... $ 209 $ 412 $ 316 $ 357 $ 397 $ 511
Ratio of earnings to
fixed charges............ 9.6 6.9 8.9 8.0 3.5 5.0
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<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Statement of Income and the Consolidated Statement of Financial
Position and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000093397
<NAME> AMOCO CORPORATION
<MULTIPLIER> 1000000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 211
<SECURITIES> 621
<RECEIVABLES> 3203
<ALLOWANCES> 17
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<PP&E> 49871
<DEPRECIATION> 27100
<TOTAL-ASSETS> 30457
<CURRENT-LIABILITIES> 5602
<BONDS> 3987
0
0
<COMMON> 2624
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<PAGE>
<PAGE>
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