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, 1997 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, 1997--490,814,896
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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,
1997 1996 1997 1996
Revenues:
Sales and other operating
revenues................. $ 7,664 $ 7,831 $15,740 $15,108
Consumer excise taxes...... 868 844 1,683 1,663
Other income............... 92 90 194 208
Total revenues .......... 8,624 8,765 17,617 16,979
Costs and Expenses:
Purchased crude oil,
natural gas, petroleum
products and merchandise. 4,215 4,399 8,673 8,274
Operating expenses......... 1,210 1,207 2,430 2,290
Petroleum exploration
expenses, including
exploratory dry holes.... 129 131 285 251
Selling and administrative
expenses................. 475 588 1,007 1,123
Taxes other than income
taxes.................... 1,060 1,040 2,105 2,067
Depreciation, depletion,
amortization, and retire-
ments and abandonments... 530 553 1,092 1,091
Interest expense........... 94 45 172 105
Total costs and expenses. 7,713 7,963 15,764 15,201
Income before income taxes... 911 802 1,853 1,778
Income taxes................. 289 202 557 450
Net income................... $ 622 $ 600 $ 1,296 $ 1,328
Weighted average number of
shares of common stock
outstanding (in thousands). 492,179 497,071 493,733 496,874
Per Share Data (Based on weighted
average shares outstanding):
Net income................... $ 1.26 $ 1.20 $ 2.62 $ 2.67
Cash dividends per share..... $ .70 $ .65 $ 1.40 $ 1.30
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Consolidated Statement of Financial Position
(millions of dollars)
June 30, Dec. 31,
ASSETS 1997 1996
Current assets:
Cash......................................... $ 318 $ 186
Marketable securities -- at cost (all
corporate
except $10 at June 30, 1997, and $141 at
December 31, 1996 which represent
state and municipal securities)............ 562 1,135
Accounts and notes receivable (less
allowances of $18 at June 30, 1997, and $17
at December 31, 1996)...................... 3,588 3,942
Inventories
Crude oil and products..................... 952 795
Materials and supplies..................... 280 274
Prepaid expenses and income taxes............ 848 731
Total current assets....................... 6,548 7,063
Investments and Other Assets:
Investments and related advances............. 929 796
Long-term receivables and other assets....... 1,241 841
2,170 1,637
Properties--at cost, less accumulated depre-
ciation, depletion and amortization of
$27,722 at June 30, 1997, and $27,111 at
December 31, 1996 (The successful efforts
method of accounting is followed for costs
incurred in oil and gas producing activities) 23,948 23,400
Total assets............................... $ 32,666 $ 32,100
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations..... $ 161 $ 151
Short-term obligations....................... 1,110 821
Accounts payable............................. 2,767 3,196
Accrued liabilities.......................... 973 908
Taxes payable (including income taxes)....... 1,016 1,063
Total current liabilities.................. 6,027 6,139
Long-term obligations:
Debt......................................... 4,455 4,153
Capitalized leases........................... 89 76
4,544 4,229
Deferred Credits and Other Non-Current Liabilities:
Income taxes................................. 3,085 2,850
Other........................................ 2,224 2,345
5,309 5,195
Minority Interest.............................. 441 129
Shareholders' Equity:
Common stock (authorized 800,000,000 shares;
issued and outstanding at June 30, 1997
--490,814,896; December 31, 1996
--497,275,364 shares)...................... 2,598 2,646
Earnings retained and invested in the
business................................... 13,866 13,806
Pension liability adjustment................. (25) (25)
Foreign currency translation adjustment...... (94) (19)
16,345 16,408
Total liabilities and shareholders' equity. $ 32,666 $ 32,100
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Consolidated Statement of Cash Flows
(millions of dollars)
Six Months Ended
June 30,
1997 1996
Cash Flows from Operating Activities:
Net income.................................. $ 1,296 $ 1,328
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, amortization,
and retirements and abandonments........ 1,092 1,091
Decrease in receivables................... 399 48
Increase in inventories................... (154) (138)
Decrease in payables and accrued
liabilities............................. (475) (292)
Deferred taxes and other items............ (55) (267)
Net cash provided by operating activities. 2,103 1,770
Cash Flows from Investing Activities:
Capital expenditures........................ (1,619) (1,707)
Proceeds from dispositions of property
and other assets.......................... 274 286
Net investments, advances and business
acquisitions.............................. (470) (600)
Proceeds from sales of investments.......... 11 100
Other....................................... - 19
Net cash used in investing activities..... (1,804) (1,902)
Cash Flows from Financing Activities:
New long-term obligations................... 337 82
Repayment of long-term obligations.......... (83) (317)
Cash dividends paid......................... (694) (635)
Issuance of common stock................... 69 34
Acquisitions of common stock................ (658) -
Increase in short-term obligations.......... 289 406
Net cash used in financing activities..... (740) (430)
Decrease in Cash and Marketable Securities.... (441) (562)
Cash and Marketable Securities-
Beginning of Period......................... 1,321 1,394
Cash and Marketable Securities-End of Period.. $ 880 $ 832
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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 second quarter of 1997 amounted to $622
million, or $1.26 per share compared with second-quarter 1996
earnings of $600 million. The increase in earnings reflected
higher refining margins and increased volumes in petroleum
products and most chemical product lines. Partially offsetting
were lower worldwide crude oil prices and lower North American
crude oil and natural gas production.
Net income for the first six months of 1997 totaled $1,296
million or $2.62 per share. Net income for the first six months
of 1996 amounted to $1,272 million, excluding first-quarter 1996
gains of $56 million after tax on certain Canadian asset
dispositions. Favorably affecting 1997 earnings were higher
exploration and production ("E&P") results, primarily due to
higher energy prices earlier in the year, and improved petroleum
products operations. Offsetting were lower chemical earnings
compared to 1996, mainly as a result of lower paraxylene margins.
Sales and other operating revenues for the second quarter of 1997
totaled $7.7 billion, slightly lower than the corresponding 1996
period. For the first six months of 1997 revenues increased four
percent compared to the similar period in 1996, reflecting higher
prices for natural gas, crude oil and refined products.
Purchases of crude oil, natural gas, petroleum products and
merchandise totaled $4.2 billion for the second quarter of 1997,
four percent lower than 1996's second quarter. The decrease was
primarily attributable to lower crude oil purchase prices and
volumes. Year-to-date purchases in 1997 were higher than the 1996
six-month period primarily due to higher refined products
volumes.
Second-quarter 1997 operating expenses were about the same as the
second quarter of 1996. Operating expenses for the first six
months were six percent above the prior-year period, reflecting
higher refining maintenance expenses in the first quarter and
higher U.S. production costs. For the first six months of 1997,
exploration expenses increased 14 percent over the similar period
in 1996, mainly due to higher dry hole costs overseas.
Selling and administrative expenses totaled $475 million and
$1,007 million for the second quarter and first six months of
1997, compared with $588 million and $1,123 million for the
respective 1996 periods. Reflected in the second quarter 1997
results were favorable before-tax currency effects of $9 million
compared with unfavorable before-tax currency effects of $19
million in the second quarter of 1996.
Interest expense increased $49 million and $67 million for the
second quarter and first six months of 1997, respectively.
Included in the second quarter of 1996 was lower interest expense
on tax obligations.
For the 12 months ended June 30, 1997, return on average
shareholders' equity was 17.6 percent compared with 14.2 percent
for the 12 months ended June 30, 1996. Return on average capital
employed was 13.4 percent for the 12-month period ended June 30,
1997, compared with 11.1 percent for the corresponding prior-year
period.
Results by Industry Segment
As previously announced, Amoco changed the basis upon which
operations are grouped for the purpose of business segment
reporting to maintain alignment with changes made in its internal
structure. Canadian supply and marketing operations for crude
oil, sulfur and natural gas liquids are now included in the
Petroleum Products segment. Previously, those businesses were
reported in the E&P segment. Segment earnings for 1996 have been
restated to conform to the new basis.
Three Months Six Months
Ended Ended
June 30, June 30,
(millions of dollars) 1997 1996 1997 1996
Exploration and Production
United States.............. $ 209 $ 234 $ 574 $ 515
Canada..................... 22 26 103 116
Overseas................... 67 85 194 206
Subtotal................... 298 345 871 837
Petroleum Products........... 185 119 213 181
Chemicals.................... 185 173 332 413
Corporate and Other
Operations*............... (46) (37) (120) (103)
Net Income................. $ 622 $ 600 $1,296 $1,328
* 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
Three Months Six Months
Ended Ended
June 30, June 30,
1997 1996 1997 1996
Net Production of Natural
Gas(million cubic feet per
day)
United States............ 2,415 2,559 2,399 2,572
Canada................... 727 815 749 830
Overseas................. 962 931 1,006 1,006
Total.................. 4,104 4,305 4,154 4,408
Net Production of Crude Oil and
NGL(thousand barrels per day)
United States--crude oil. 164 180 167 182
--NGL....... 110 114 115 111
Canada--crude oil........ 52 46 51 49
--NGL.............. 10 12 10 12
Overseas................. 295 310 301 301
Total.................. 631 662 644 655
U.S. Refined Product Sales
(thousand barrels per day)
Gasoline................. 684 628 635 620
Distillates.............. 332 366 331 366
Other products........... 202 217 179 182
Total.................. 1,218 1,211 1,145 1,168
Input to U.S. Crude Units
(thousand barrels per day) 961 977 919 945
Refinery Utilization Rate 95% 97% 91% 94%
Exploration and Production - U. S.
U.S. E&P operations earned $209 million during the second quarter
of 1997 compared with $234 million for the similar 1996 period.
The decrease primarily resulted from lower crude oil prices and
lower crude oil and natural gas production. Partly offsetting
were lower exploration expenses and higher natural gas prices.
Earnings of $574 million for first six months of 1997 increased
11 percent over the comparable 1996 period, primarily reflecting
higher natural gas prices offset by lower production due to
normal field declines and dispositions.
Amoco's second-quarter U.S. natural gas prices averaged
approximately $1.70 per thousand cubic feet ("mcf"), an increase
of three percent over the comparable period of 1996. Amoco's
average U.S. crude oil prices of about $17.60 per barrel declined
$1.90 per barrel from the second quarter of 1996.
For the first half of 1997, Amoco's U.S. natural gas prices
averaged about $2.05 per mcf, about a 35 cent increase over the
prior-year period. Amoco's U.S. crude oil prices averaged almost
$19.20 per barrel during the first six months of 1997, a four
percent increase over the comparable 1996 period.
Exploration and Production - Canada
Canadian operations earned $22 million in the second quarter of
1997 compared with restated 1996 second-quarter earnings of $26
million. The slight decrease in 1997 earnings primarily reflected
lower crude oil prices and lower natural gas production, which
more than offset lower exploration expenses and higher natural
gas prices.
Earnings for the first half of 1997 totaled $103 million compared
with six-month restated 1996 earnings of $60 million, excluding
gains of $56 million on the sale of assets. The operating
earnings improvement resulted primarily from higher natural gas
prices and lower exploration expenses, partially offset by lower
production due to property dispositions and natural field
declines.
Amoco's Canadian natural gas prices averaged $1.15 per mcf for
the quarter, about 10 cents higher than the second quarter of
1996. For the first six months, Canadian natural gas prices
increased 35 percent over the comparable 1996 period to average
about $1.50 per mcf. Canadian crude oil prices averaged $14.00
per barrel for the second quarter of 1997, 27 percent below the
prior-year second quarter average, reflecting the increase in
lower-priced heavy oil production. For the first half of 1997,
Canadian crude oil prices averaged about $15.40 per barrel, an
eight percent decrease from the 1996 level.
Exploration and Production - Overseas
Overseas E&P operations earned $67 million in the second quarter
of 1997 compared with $85 million in the second quarter of 1996.
The decline was primarily due to lower crude oil prices and
higher exploration expenses. For the first six months of 1997,
overseas E&P operations earned $194 million, a decline of $12
million from the comparable prior-year period. The decrease
mainly reflected higher exploration expenses, which more than
offset favorable currency effects and increased energy prices.
Second-quarter 1997 natural gas production increased due to
incremental production in Bolivia. Crude oil production for the
second quarter of 1997 declined as incremental production from
Bolivia and Venezuela more than offset declines elsewhere. On an
energy equivalent basis, year-to-date 1997 production was the
same as the year-earlier period.
Petroleum Products
Petroleum Products activities earned $185 million for the second
quarter compared with restated earnings of $119 million in the
second quarter of 1996. The 1996 earnings were restated to
reflect the transfer of Canadian supply and marketing operations
for crude oil, sulfur and natural gas liquids to the petroleum
products segment. The increase in second-quarter 1997 earnings
primarily resulted from stronger U.S. refined product margins and
favorable product mix. Second-quarter 1997 earnings from Canadian
supply and marketing operations declined from the second quarter
of 1996, reflecting lower natural gas liquids ("NGL") margins.
Earnings for the first half of 1997 totaled $213 million, an
increase of 18 percent over the comparable period in 1996. The
increase reflects higher U.S. refined product margins and
favorable product mix. Partly offsetting were higher refining
maintenance costs and lower throughput experienced in the first
quarter of 1997, reflecting planned turnaround at Amoco's largest
refineries. Earnings for Canadian supply and marketing operations
for the first six months of 1997 were about the same as the year-
earlier period.
Chemicals
Chemical earnings of $185 million for the second quarter of 1997
compared with $173 million for the similar 1996 period. The
increase in earnings primarily reflected increased productive
capacity, strengthening worldwide sales volumes for most product
lines and higher olefins margins, which more than offset lower
paraxylene margins.
For the first six months of 1997 earnings totaled $332 million
compared with $413 million for the same period in 1996. The
decline in earnings resulted from lower paraxylene and purified
terephthalic acid ("PTA") margins partly offset by increased
sales volumes and higher olefins margins.
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 incurred net expenses of $46
million and $120 million for the second quarter and first half of
1997, respectively, compared with net expenses after tax of $37
million and $103 million in the corresponding 1996 periods.
Outlook
The Corporation and the petroleum 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
ongoing cost reduction programs; the divestment of non-strategic
assets; application of new technologies; and new governmental
regulations.
Amoco will pursue areas that capitalize on its natural gas
resources and continue to expand internationally. As announced in
June, Amoco plans to divest a number of its oil and gas
properties and royalty interests in the United States as part of
a major refocusing of its U.S. exploration and production
business. The properties account for about 10 percent of U.S. net
production. The proceeds from the divestments will be used to
fund growth opportunities in and outside North America and for
general corporate purposes.
Amoco's worldwide barrel-oil-equivalent production is expected to
increase from 1996 levels by 25 percent over the next five years,
with the largest increases expected to occur in the later years.
Production in 1997 is expected to decrease slightly from year-end
1996, with incremental production from the Gulf of Mexico, and
production from Venezuela, Colombia and Bolivia, being offset by
normal field declines and dispositions.
In petroleum products, Amoco does not anticipate a significant
improvement in U.S. industry refining margins in the near term.
Amoco will continue to pursue additional cost reduction programs
and improved asset utilization. Amoco's marketing strategy will
continue to emphasize brand product quality and growth in its
position as a convenience retailer. Strategic alliances with such
companies as McDonald's Corporation and Femsa in Mexico are
expected to continue.
In chemicals, Amoco's overall strategy is to manage its portfolio
to optimize the quality of its businesses through acquisitions
and divestments, and selectively invest in local market growth
for existing businesses. While current industry excess PTA
capacity is putting downside pressure on margins, long-term
worldwide growth is expected to be eight percent. Paraxylene
("PX") long-term annual growth is expected to be seven percent.
In order to meet expected growth in PTA and PX, Amoco is
expanding its wholly owned and joint-ventures operations.
Liquidity and Capital Resources
Cash flows from operating activities for the first six months of
1997 amounted to $2,103 million compared with $1,770 million in
the prior-year period. Working capital of $521 million at June
30, 1997 compared with $924 million at December 31, 1996. The
Corporation's current ratio was 1.09 to 1 at June 30, 1997,
compared with 1.15 to 1 at year-end 1996. 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.
Long-term receivables and other assets at June 30, 1997 included
$280 million in restricted cash and investments committed to the
operatorship of a Bolivian oil and gas company, Empresa Petrolera
Chaco. Amoco completed the agreement for operatorship and 50
percent ownership of Empresa Petrolera Chaco in April 1997.
Amoco's debt totaled $5.7 billion at June 30, 1997 and $5.1
billion at year-end 1996. Debt as a percentage of debt-plus-
equity was 25.4 percent at June 30, 1997, and 23.6 percent at
year-end 1996. 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").
For the first six months of 1997, 6.9 million shares of Amoco's
common stock, in excess of amounts needed for benefit plan
purposes, were repurchased at a cost of $602 million as part of
the $2 billion, two-year common stock repurchase program.
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, 1997, 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 favorable access to long-
term debt markets to finance profitable growth opportunities and
other business needs. In early August 1997, Amoco Company issued
$300 million in 10-year, 6.5% guaranteed notes from a $500
million Securities and Exchange Commission ("SEC") shelf
registration statement.
Capital and exploration expenditures for the first six months of
1997 totaled $1,904 million. Excluded from this amount were
expenditures related to Empresa Petrolera Chaco. Capital and
exploration expenditures for the first six months of 1996
amounted to $1,958 million, excluding the purchase of Albemarle
Corporation's alpha-olefins, poly alpha-olefins and synthetic
alcohol businesses.
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.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995.
Statements in this report that are not historical facts,
including statements under the heading of "Outlook" and other
statements about industry and company growth, estimates of
expenditures and savings, and other trend projections are forward
looking statements. The statements are based on current
expectations and involve risk and uncertainties. Actual future
results or trends may differ materially depending on a variety of
factors. These include specific factors identified in the
discussion accompanying such forward looking statements, industry
product supply and pricing, political stability and economic
growth in relevant areas of the world, Amoco's successful
execution of its internal performance plans, successful
partnering, actions of competitors, natural disasters and other
changes to business conditions.
PART II--OTHER INFORMATION
Item 1. Legal Proceedings
Reference is made to the description of the challenge by the
Internal Revenue Service of certain foreign income taxes as
credits against the Corporation's U.S. taxes that otherwise would
have been payable for the years 1980 through 1992 in Part I, Item
3 of Amoco's 1996 Form 10-K.
Twelve 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 $7.5 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 in 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 Six Months
Ended Ended
June 30, June 30,
1997 1996 1997 1996
(millions of dollars)
Total revenues(including
excise taxes)........... $7,826 $8,026 $15,900 $15,430
Net income.............. $ 546 $ 510 $ 1,102 $ 1,108
June 30, Dec. 31,
1997 1996
(millions of dollars)
Current assets................. $ 6,896 $ 6,361
Total assets................... $30,995 $29,208
Current liabilities............ $ 4,972 $ 4,926
Long-term debt-affiliates...... $ 4,803 $ 4,731
-other........... $ 2,519 $ 2,190
Deferred credits............... $ 4,646 $ 4,524
Minority interest.............. $ 427 $ 131
Shareholder's equity........... $13,539 $12,630
Shown below is summarized financial information for Amoco's
wholly owned subsidiary, Amoco Canada.
Three Months Six Months
Ended Ended
June 30, June 30,
1997 1996 1997 1996
(millions of dollars)
Revenues................ $1,057 $1,008 $2,407 $2,041
Net income(loss)........ $ (4) $ 54 $ 137 $ 147
June 30, Dec. 31,
1997 1996
(millions of dollars)
Current assets.................. $ 1,528 $ 1,615
Total assets.................... $ 4,233 $ 4,412
Current liabilities............. $ 782 $ 1,110
Non-current liabilities......... $ 3,389 $ 3,377
Shareholder's equity(deficit)... $ 62 $ (75)
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,
1997 1996 1997 1996
(millions of dollars)
Revenues................ $ 68 $ 79 $153 $154
Net income.............. $ 24 $ 29 $ 56 $ 56
June 30, Dec. 31,
1997 1996
(millions of dollars)
Current assets ................. $ 61 $251
Total assets.................... $458 $613
Current liabilities............. $106 $ 87
Non-current liabilities......... $280 $237
Shareholder's equity ........... $ 72 $289
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) A current report on Form 8-K dated April 14, 1997, was filed
to restate segment earnings for the years 1996, 1995 and 1994,
and quarterly segment earnings for 1996 and 1995. The Corporation
changed the basis upon which operations are grouped for the
purpose of business segment reporting to maintain alignment with
changes made in its internal structure. Beginning with the first
quarter of 1997, Canadian supply and marketing operations for
crude oil, sulfur and natural gas liquids are included in the
Petroleum Products segment. Previously, those businesses were
reported in the E&P segment.
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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 13, 1997
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,
1997 1996 1995 1994 1993 1992
Determination of Income:
Consolidated earnings
before income taxes
and minority interest $1,853 $3,965 $2,404 $2,491 $2,506 $ 998
Fixed charges expensed
by consolidated
companies............ 218 412 406 316 350 376
Adjustments for certain
companies accounted
for by the equity
method............... (13) 69 25 7 11 28
Adjusted earnings plus
fixed charges........ $2,058 $4,446 $2,835 $2,814 $2,867 $1,402
Determination of Fixed Charges:
Consolidated interest
on indebtedness
(including interest
capitalized)......... $ 173 $ 317 $ 317 $ 288 $ 299 $ 333
Consolidated rental
expense representa-
tive of an interest
factor............... 51 107 89 23 50 44
Adjustments for certain
companies accounted
for by the equity
method............... 4 8 6 5 8 20
Total fixed charges.... $ 228 $ 432 $ 412 $ 316 $ 357 $ 397
Ratio of earnings to
fixed charges.......... 9.0 10.3 6.9 8.9 8.0 3.5
<TABLE> <S> <C>
<PAGE>
<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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 318
<SECURITIES> 562
<RECEIVABLES> 3606
<ALLOWANCES> 18
<INVENTORY> 1232
<CURRENT-ASSETS> 6548
<PP&E> 51670
<DEPRECIATION> 27722
<TOTAL-ASSETS> 32666
<CURRENT-LIABILITIES> 6027
<BONDS> 4455
0
0
<COMMON> 2598
<OTHER-SE> 13747
<TOTAL-LIABILITY-AND-EQUITY> 32666
<SALES> 15740
<TOTAL-REVENUES> 17617
<CGS> 11388
<TOTAL-COSTS> 11388
<OTHER-EXPENSES> 3197
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 172
<INCOME-PRETAX> 1853
<INCOME-TAX> 557
<INCOME-CONTINUING> 1296
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1296
<EPS-PRIMARY> 2.62
<EPS-DILUTED> 0
</TABLE>
