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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 September 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 September 30, 1996--
497,254,550
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PART I-- FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Income
(millions of dollars)
Three Months Nine Months
Ended Ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Sales and other operating
revenues................. $ 7,910 $ 6,660 $23,018 $20,094
Consumer excise taxes...... 869 859 2,532 2,502
Other income............... 239 119 447 319
Total revenues........... 9,018 7,638 25,997 22,915
Costs and Expenses:
Purchased crude oil,
natural gas, petroleum
products and merchandise. 4,582 3,401 12,856 10,488
Operating expenses......... 1,165 1,132 3,455 3,356
Petroleum exploration
expenses, including
exploratory dry holes.... 165 149 416 380
Selling and administrative
expenses................. 488 496 1,611 1,509
Taxes other than income
taxes.................... 1,088 1,046 3,155 3,057
Depreciation, depletion,
amortization, and retire-
ments and abandonments... 583 532 1,674 1,590
Interest expense........... 59 84 164 259
Total costs and expenses. 8,130 6,840 23,331 20,639
Income before income taxes... 888 798 2,666 2,276
Income taxes................. 253 199 703 621
Net income................... $ 635 $ 599 $ 1,963 $ 1,655
Weighted average number of
shares of common stock
outstanding (in thousands). 497,203 494,060 496,984 495,078
Per Share Data (Based on weighted
average shares outstanding):
Net income................... $ 1.28 $ 1.21 $ 3.95 $ 3.34
Cash dividends per share..... $ .65 $ .60 $ 1.95 $ 1.80
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Consolidated Statement of Financial Position
(millions of dollars)
Sept. 30, Dec. 31,
ASSETS 1996 1995
Current Assets:
Cash........................................ $ 155 $ 182
Marketable securities -- at cost (all
corporate except $124 at September 30, 1996
and $184 at December 31, 1995, which
represent state and municipal securities). 806 1,212
Accounts and notes receivable (less
allowances of $17 at September 30, 1996,
and $16 at December 31, 1995)............. 3,343 3,332
Inventories
Crude oil and products.................... 838 750
Materials and supplies.................... 347 291
Prepaid expenses and income taxes........... 840 723
Total current assets...................... 6,329 6,490
Investments and Other Assets:
Investments and related advances............ 665 654
Long-term receivables and other assets...... 873 655
1,538 1,309
Properties--at cost, less accumulated depre-
ciation, depletion and amortization of
$27,125 at September 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)................................. 23,028 22,046
Total assets.............................. $30,895 $29,845
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term obligations.... $ 94 $ 341
Short-term obligations...................... 900 735
Accounts payable............................ 2,493 2,822
Accrued liabilities......................... 963 989
Taxes payable (including income taxes)...... 1,005 887
Total current liabilities................. 5,455 5,774
Long-Term Debt................................ 4,178 3,962
Deferred Credits and Other Non-Current Liabilities:
Income taxes................................ 2,907 2,745
Other....................................... 2,366 2,401
5,273 5,146
Minority Interest............................. 124 115
Shareholders' Equity:
Common stock (authorized 800,000,000 shares;
issued and outstanding at September 30,
1996 --497,254,550; December 31, 1995
--496,402,697 shares)..................... 2,631 2,590
Earnings retained and invested in the
business.................................. 13,299 12,295
Pension liability adjustment................ (49) (49)
Foreign currency translation adjustment..... (16) 12
15,865 14,848
Total liabilities and shareholders' equity $30,895 $29,845
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Consolidated Statement of Cash Flows
(millions of dollars)
Nine Months Ended
September 30,
1996 1995
Cash Flows from Operating Activities:
Net income.................................. $ 1,963 $ 1,655
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, amortization,
and retirements and abandonments........ 1,674 1,590
(Increase) decrease in receivables........ (140) 94
Increase in inventories................... (111) (174)
Decrease in payables and accrued
liabilities............................. (181) (298)
Deferred taxes and other items............ (371) (376)
Net cash provided by operating activities. 2,834 2,491
Cash Flows from Investing Activities:
Capital expenditures........................ (2,663) (2,367)
Proceeds from dispositions of property
and other assets.......................... 705 230
Net investments, advances and business
acquisitions.............................. (642) (164)
Proceeds from sales of investments.......... 110 -
Other....................................... 15 9
Net cash used in investing activities..... (2,475) (2,292)
Cash Flows from Financing Activities:
New long-term obligations................... 346 245
Repayment of long-term obligations.......... (385) (277)
Cash dividends paid......................... (958) (888)
Issuance of common stock................... 40 31
Acquisitions of common stock................ - (661)
Increase in short-term obligations.......... 165 689
Net cash used in financing activities..... (792) (861)
Decrease in Cash and Marketable Securities.... (433) (662)
Cash and Marketable Securities-
Beginning of Period......................... 1,394 1,789
Cash and Marketable Securities-End of Period.. $ 961 $ 1,127
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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
Net income for the first nine months of 1996 amounted to $1,963
million, or $3.95 per share, an increase of 19 percent over net
income for the first nine months of 1995 of $1,655 million, or
$3.34 per share. Included in the results for the first nine
months of 1996 were gains of $97 million on the sale of Amoco's
polystyrene foam products business and $56 million on certain
Canadian asset dispositions. Excluding these gains, first nine-
month earnings totaled $1,810 million, 9 percent higher than the
similar 1995 period. The increase in earnings primarily reflected
higher energy prices and production volumes, partially offset by
lower chemical and petroleum products margins.
Net income for the third quarter of 1996 was $635 million or
$1.28 per share. Benefiting earnings was the previously mentioned
gain on the sale of Amoco's polystyrene foam products business.
Excluding this gain, earnings were $538 million, a decline of 10
percent from 1995's third quarter net income of $599 million.
Continued weakness in petroleum products and chemical margins
more than offset higher energy prices and production volumes.
For the 12 months ended September 30, 1996, return on average
shareholders' equity was 14.0 percent compared with 15.0 percent
for the 12 months ended September 30, 1995. Return on average
capital employed was 10.9 percent for the 12-month period ended
September 30, 1996, compared with 12.2 percent for the
corresponding prior-year period.
Sales and other operating revenues totaled $23 billion for the
first nine months of 1996 and $7.9 billion for the third quarter,
15 and 19 percent higher, respectively, than the corresponding
1995 periods. The increase in both periods was attributable to
higher crude oil, natural gas, and refined product prices and
sales volumes. Chemical revenues for both the nine months and
third quarter increased slightly compared with the similar 1995
periods, as acquisitions and volume increases offset lower prices.
The increase in other income for both year-to-date and third
quarter 1996 mainly reflected the gain on the sale of Amoco's
polystyrene foam products business.
Purchases of crude oil, natural gas, petroleum products and
merchandise for the first nine months and third quarter of 1996
increased 23 percent and 35 percent, respectively, compared with
the similar 1995 periods. The increase in both periods primarily
resulted from higher crude oil and natural gas volumes and prices
and increases in refined product prices.
Petroleum exploration expenses increased nine and 11 percent,
respectively, in the first nine months and third quarter of 1996
compared with 1995, primarily reflecting higher dry hole expenses
overseas.
Selling and administrative expenses for the first nine months of
$1.6 billion compared with $1.5 billion for the comparable 1995
period. Included in selling and administrative expenses were
ongoing reorganization costs of $98 million before tax, $10
million higher than 1995, mainly related to system redesign and
new process development. Third-quarter 1996 reorganization costs
totaled $31 million before tax compared to $25 million incurred
in the third quarter of 1995. Also reflected in the third
quarter 1996 selling and administrative expenses were favorable
currency effects of $3 million, compared to unfavorable currency
effects of $27 million in the third quarter of 1995.
Interest expense of $164 million and $59 million for the first
nine months and third quarter 1996, respectively, decreased from
the corresponding 1995 periods primarily as a result of lower
interest related to revised estimates of tax obligations.
Net Income by Industry Segment
Nine Months Third Quarter
(millions of dollars) 1996 1995 1996 1995
Exploration and Production
United States.......... $ 739 $ 523 $ 224 $ 159
Canada................. 224 69 35 (10)
Overseas............... 310 239 104 91
Subtotal............... 1,273 831 363 240
Petroleum Products....... 200 254 92 131
Chemicals................ 630 775 217 296
Corporate and
Other Operations*...... (140) (205) (37) (68)
Net Income............... $1,963 $1,655 $ 635 $ 599
* 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.
Operating Statistics
Nine Months Third Quarter
1996 1995 1996 1995
Net Production of Natural Gas
(million cubic feet per day)
United States............ 2,574 2,445 2,579 2,470
Canada................... 821 828 802 856
Overseas................. 949 901 840 820
Total.................. 4,344 4,174 4,221 4,146
Net Production of Crude Oil and NGL
(thousand barrels per day)
United States--crude oil. 181 185 180 182
--NGL....... 113 106 117 104
Canada--crude oil........ 50 53 50 52
--NGL.............. 12 13 11 13
Overseas................. 300 296 307 298
Total.................. 656 653 665 649
U.S. Refined Product Sales
(thousand barrels per day)
Gasoline................. 633 601 659 624
Distillates.............. 358 362 343 373
Other products........... 198 186 230 224
Total.................. 1,189 1,149 1,232 1,221
Input to U.S. Crude Units
(thousand barrels per day) 950 920 959 978
Refinery Utilization Rate 94% 92% 95% 98%
Exploration and Production - U. S.
U.S. Exploration and Production ("E&P") operations earned $739
million in the first nine months of 1996 compared with $523
million for the similar 1995 period. In the third quarter of
1996 earnings increased to $224 million from $159 million in
last year's third quarter. The improvement in both 1996 periods
primarily reflected higher crude oil and natural gas prices
and increased natural gas volumes, partly offset by higher
exploration expenses.
Amoco's natural gas prices for the first nine months and third
quarter of 1996 averaged approximately $1.70 per thousand cubic
feet ("mcf"), $.40 per mcf above the first nine months of 1995
and $.50 per mcf above the prior-year third quarter. For the
first nine months of 1996, Amoco's average crude oil prices were
up about $3.00 per barrel and averaged approximately $19.20 per
barrel. For the third quarter 1996, crude oil prices averaged
approximately $20.55 per barrel, an increase of $4.70 per barrel
from 1995's third quarter average.
Exploration and Production - Canada
Canadian E&P earnings, which include supply and marketing of
natural gas liquids ("NGL"), were $224 million and $35
million for the 1996 first nine months and third quarter,
respectively, compared with earnings of $69 million and a loss of
$10 million for the comparable periods of 1995. Earnings during
1996 benefited from higher energy prices, higher supply and
marketing earnings, lower exploration expenses and favorable
currency effects. Partially offsetting were lower crude oil and
natural gas production, and a restructuring charge of about $10
million after tax primarily related to the elimination of 220
positions. Also impacting 1996 nine-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 $1.05
per mcf for the first nine months of 1996 compared with about
$.90 per mcf for the prior-year period. For the quarter, natural
gas prices increased $.10 per mcf to average approximately $.95
per mcf. Average crude oil prices for the first nine months of
1996 were approximately $17.20 per barrel, $1.80 per barrel
higher than the comparable period last year. Average crude oil
prices for the third quarter of 1996 increased almost $3.00 per
barrel compared with the third quarter of 1995, averaging almost
$18.20 per barrel for the quarter.
Exploration and Production - Overseas
Overseas E&P earnings were $310 million for the first nine
months of 1996, an increase of $71 million over 1995's first
nine-months results. Third quarter 1996 earnings were $104
million compared with $91 million for the third quarter of 1995.
The growth in earnings from a year ago reflected higher crude oil
prices and production volumes, which more than offset an increase
in exploration expenses. Third-quarter 1996 crude oil and NGL
production increased three percent compared with the prior-year
period, as production of 28,000 barrels per day from the Liuhua
field in the South China Sea more than offset declines elsewhere.
Liuhua field production, which began in late March of this year,
averaged 18,000 barrels per day for the first nine months.
Petroleum Products
Petroleum Products activities earned $200 million for the
first nine months of 1996, compared with $254 million for the
nine month period in 1995. Third quarter 1996 earnings were $92
million compared with $131 million in the third quarter of 1995.
The earnings decreased from those for the same period a year ago
as lower refining margins, in part reflecting higher crude oil
costs, more than offset gains associated with asset dispositions.
Chemicals
Excluding the $97 million gain from the sale of the polystyrene
foam products business, chemical operations earned $533 million
for the first nine months of 1996 and $120 million in the third
quarter, compared with $775 million and $296 million for the
respective 1995 periods. The decrease in earnings for both periods
primarily reflected significantly lower margins for olefins,
paraxylene ("PX") and purified terephthalic acid ("PTA"),
compared with exceptionally high levels of a year ago. Overall
industry-wide inventory destocking early in the year accelerated
the reduction in margins.
On a year-to-date basis, margins have declined. However, chemical
volumes have increased, reflecting capacity additions, partly
offsetting the margin declines. PX sales volumes increased 10
percent and olefins sales volumes increased 13 percent during the
first nine months of 1996 compared to the similar period in 1995.
While nine-month PTA volumes declined slightly from 1995 levels,
third-quarter volumes were 10 percent higher than a year ago.
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.
These operations reported net expenses after tax of $140 million
for the first nine months of 1996, compared with $205 million for
the first nine months of 1995. Third quarter net expenses were
$37 million in 1996 compared to $68 million in the third
quarter of 1995. The decrease in net expenses for both periods
primarily reflected lower corporate expenses and lower interest
related to revised estimates of tax obligations. Year-to-date
earnings were also impacted by second-quarter gains on asset
dispositions, which were partly offset by unfavorable currency
effects.
Outlook
Amoco 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 target those areas that offer
the most potential. Amoco will also continue to capitalize on
its natural gas resources. In the third quarter, a contract was
signed to supply Ecopetrol with up to 100 million cubic feet of
natural gas daily from Amoco's Opon field in Colombia. Amoco's
E&P barrel-oil-equivalent current-year production in North
America is expected to remain approximately at 1995 levels.
Outside North America, the Liuhua oil field in the South China
Sea came onstream in late March and should benefit 1996 crude
oil production by an average of over 20,000 barrels per day.
Overseas natural gas production is expected to increase in 1996
compared to 1995.
In the petroleum products sector, Amoco anticipates weak refining
margins 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. As recently announced, Amoco is selling its Central
Europe marketing sites as part of its refocused strategy to
grow retail marketing operations primarily in the Americas.
The sites being sold include four existing outlets and fourteen
others that are currently under construction in Poland, Romania
and Bulgaria.
In the chemical sector, while the near-term industry outlook
remains soft for commodity chemicals, Amoco expects long-term
annual worldwide volume growth to exceed three percent, with a
higher increase anticipated in the Asia-Pacific region. PTA
average annual growth is expected to be eight percent over the
next decade, with the largest demand increase expected to be in
the Asia-Pacific region, while worldwide 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.
During the third quarter, a new 200,000 metric ton polypropylene
unit at Amoco's Geel, Belgium plant began operations. Amoco also
announced an expansion of purified isophthalic acid (PIA)
capacity at its Joliet, Ill., facility from the current 93,000
tons per year to 200,000 tons per year. Operations are expected
to begin in first quarter 1998. Sale of Amoco Foam Products
Company ("Amoco Foam") to a unit of Tenneco Inc. was also
completed. Huntsman Chemical Corporation has signed an agreement
to purchase Amoco's polystyrene assets.
Amoco will continue to evaluate and divest marginal properties
and underperforming assets. Amoco also continues to seek
attractive opportunities worldwide and is constantly reviewing
strategic alternatives. 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. Amoco will have a 65
percent interest in the joint venture, which is expected to
produce approximately 210,000 gross barrels per day of crude oil
and 250 million gross cubic feet per day of natural gas. 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 the fourth
quarter of 1996 or early 1997.
Liquidity and Capital Resources
Cash flows from operating activities for the first nine months of
1996 amounted to $2,834 million compared with $2,491 million in
the prior-year period. Working capital was $874 million at
September 30, 1996, compared with $716 million at December 31,
1995. The Corporation's current ratio was 1.16 to 1 at September
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 September 30, 1996, compared
with $5.0 billion as of year-end 1995. Debt as a percentage of
debt-plus-equity was 24.4 percent at September 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 September 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
credit 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.
Proceeds from dispositions of property and other assets included
$310 million received from the sale of Amoco Foam to a unit of
Tenneco Inc.
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 nine months of
1996 totaled $3,079 million, excluding the Albemarle acquisition,
compared with $2,747 million for the comparable 1995 period. The
increase over the first nine months of 1995 reflected planned
increases in spending in growth areas. Approximately 68 percent
of the $3,079 million spent to date has occurred 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.
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 Forms 10-Q for the quarters ended March 31, 1996, and
June 30, 1996. The IRS filed a Notice of Appeal of the decision
in the U.S. Tax Court on October 9, 1996. The case will be sent
to the United States Court of Appeals for the Seventh Circuit.
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.
Thirteen 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.
Item 5. Other Information
Shown below is summarized financial information for Amoco's
wholly owned subsidiary, Amoco Company.
Three Months Nine Months
Ended Ended
September 30, September 30,
1996 1995 1996 1995
(millions of dollars)
Total revenues(including
excise taxes)........... $8,272 $7,062 $23,702 $20,996
Operating profit........ $ 908 $ 926 $ 2,610 $ 2,415
Net income.............. $ 566 $ 606 $ 1,674 $ 1,554
Sept. 30, Dec. 31,
1996 1995
(millions of dollars)
Current assets................. $ 5,453 $ 5,303
Total assets................... $27,715 $26,326
Current liabilities............ $ 4,184 $ 4,578
Long-term debt-affiliates...... $ 4,568 $ 4,608
-other........... $ 2,212 $ 2,177
Deferred credits............... $ 4,524 $ 4,397
Minority interest.............. $ 124 $ 110
Shareholder's equity........... $12,103 $10,456
Shown below is summarized financial information for Amoco's
wholly owned subsidiary, Amoco Canada.
Three Months Nine Months
Ended Ended
September 30, September 30,
1996 1995 1996 1995
(millions of dollars)
Revenues................ $1,094 $ 838 $3,135 $2,639
Net income(loss)........ $ (18) $ (90) $ 129 $ (111)
Sept. 30, Dec. 31,
1996 1995
(millions of dollars)
Current assets.................. $ 1,226 $ 1,252
Total assets.................... $ 4,479 $ 4,493
Current liabilities............. $ 2,292 $ 2,494
Non-current liabilities......... $ 2,440 $ 2,381
Shareholder's deficit........... $ (253) $ (382)
Shown below is summarized financial information for
Amoco's indirectly wholly owned subsidiary, Amoco
Argentina.
Three Months Nine Months
Ended Ended
September 30, September 30,
1996 1995 1996 1995
(millions of dollars)
Revenues................ $ 90 $ 67 $244 $189
Net income.............. $ 34 $ 20 $ 90 $ 64
Sept. 30, Dec. 31,
1996 1995
(millions of dollars)
Current assets.................. $125 $ 73
Total assets.................... $527 $389
Current liabilities............. $ 78 $ 49
Non-current liabilities......... $198 $113
Shareholder's equity............ $251 $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
September 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: November 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)
Nine
Months
Ended Year Ended December 31,
Sept. 30,
1996 1995 1994 1993 1992 1991
Determination of Income:
Consolidated earnings
before income taxes
and minority interest.. $2,666 $2,404 $2,491 $2,506 $ 998 $2,035
Fixed charges expensed by
consolidated companies. 301 406 316 350 376 479
Adjustments for certain
companies accounted for
by the equity method... 20 25 7 11 28 20
Adjusted earnings plus
fixed charges.......... $2,987 $2,835 $2,814 $2,867 $1,402 $2,534
Determination of Fixed Charges:
Consolidated interest on
indebtedness (including
interest capitalized).. $ 231 $ 317 $ 288 $ 299 $ 333 $ 433
Consolidated rental
expense representative
of an interest factor.. 80 89 23 50 44 54
Adjustments for certain
companies accounted for
by the equity method... 5 6 5 8 20 24
Total fixed charges...... $ 316 $ 412 $ 316 $ 357 $ 397 $ 511
Ratio of earnings to
fixed charges............ 9.5 6.9 8.9 8.0 3.5 5.0
<TABLE> <S> <C>
<PAGE>
<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> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 155
<SECURITIES> 806
<RECEIVABLES> 3360
<ALLOWANCES> 17
<INVENTORY> 1185
<CURRENT-ASSETS> 6329
<PP&E> 50153
<DEPRECIATION> 27125
<TOTAL-ASSETS> 30895
<CURRENT-LIABILITIES> 5455
<BONDS> 4178
0
0
<COMMON> 2631
<OTHER-SE> 13234
<TOTAL-LIABILITY-AND-EQUITY> 30895
<SALES> 23018
<TOTAL-REVENUES> 25997
<CGS> 16727
<TOTAL-COSTS> 16727
<OTHER-EXPENSES> 4829
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 164
<INCOME-PRETAX> 2666
<INCOME-TAX> 703
<INCOME-CONTINUING> 1963
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1963
<EPS-PRIMARY> 3.95
<EPS-DILUTED> 0
</TABLE>
