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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 March 31, 1998 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 March 31, 1998--959,627,584
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PART I-- FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Income
(millions of dollars, except as noted)
Three Months Ended
March 31,
1998 1997
Revenues:
Sales and other operating revenues............ $ 6,633 $ 8,076
Consumer excise taxes......................... 846 815
Equity in income of affiliates and
other income................................ 164 102
Total revenues.............................. 7,643 8,993
Cost and Expenses:
Purchased crude oil, natural gas,
petroleum products and merchandise.......... 3,684 4,458
Operating expenses............................ 1,106 1,220
Petroleum exploration expenses,
including exploratory dry holes............. 142 156
Selling and administrative expenses........... 559 532
Taxes other than income taxes................. 996 1,045
Depreciation, depletion, amortization,
and retirements and abandonments............ 548 562
Interest expense.............................. 94 78
Total costs and expenses.................... 7,129 8,051
Income before income taxes...................... 514 942
Income taxes.................................... 128 268
Net income...................................... $ 386 $ 674
Weighted average number of shares of common
stock outstanding (in thousands)
Basic......................................... 962,042 990,573
Assuming dilution............................. 966,588 996,119
Per Share Data (Based on weighted
average shares outstanding):
Net income (basic).............................. $ .40 $ .68
Net income (assuming dilution).................. $ .40 $ .68
Cash dividends.................................. $ .375 $ .35
___________________
All share data reflect the March 31, 1998 two-for-one common stock
split.
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Consolidated Statement of Financial Position
(millions of dollars)
March 31, Dec. 31,
ASSETS 1998 1997
Current assets:
Cash......................................... $ 142 $ 166
Marketable securities -- at cost (corporate
securities, except $104 at December 31,
1997 which represents state and municipal 422 979
securities).
Accounts and notes receivable (less
allowances of $11 at March 31, 1998, and
$10 on December 31, 1997).................. 3,302 3,585
Inventories
Crude oil and products..................... 921 914
Materials and supplies..................... 274 260
Prepaid expenses, income taxes and other..... 961 1,140
Total current assets....................... 6,022 7,044
Investments and Other Assets:
Investments and related advances............. 2,162 2,099
Long-term receivables and other assets....... 1,054 803
3,216 2,902
Properties--at cost, less accumulated depre-
ciation, depletion and amortization of
$27,300 at March 31, 1998, and $26,814 at
December 31, 1997 (The successful efforts
method of accounting is followed for costs
incurred in oil and gas producing activities) 22,643 22,543
Total assets............................... $ 31,881 $ 32,489
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations..... $ 145 $ 218
Short-term obligations....................... 1,212 751
Accounts payable............................. 2,499 3,026
Accrued liabilities.......................... 810 785
Taxes payable (including income taxes)....... 916 1,264
Total current liabilities.................. 5,582 6,044
Long-term obligations:
Debt......................................... 4,780 4,639
Capitalized leases........................... 82 80
4,862 4,719
Deferred Credits and Other Non-Current Liabilities:
Income taxes................................. 2,914 2,868
Other........................................ 2,299 2,408
5,213 5,276
Minority Interest.............................. 167 131
Shareholders' Equity:
Common stock (authorized 1,600,000,000 shares;
issued and outstanding at March 31, 1998
--959,627,584; December 31, 1997
--966,047,616 shares)...................... 2,546 2,568
Earnings retained and invested in the
business................................... 13,664 13,900
Accumulated other comprehensive income:
Pension liability adjustment............... (31) (31)
Foreign currency translation adjustment.... (122) (118)
16,057 16,319
Total liabilities and shareholders' equity. $ 31,881 $ 32,489
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Consolidated Statement of Cash Flows
(millions of dollars)
Three Months Ended
March 31,
1998 1997
Cash Flows from Operating Activities:
Net income................................... $ 386 $ 674
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, amortization,
and retirements and abandonments......... 548 562
Decrease in receivables.................... 273 431
Increase in inventories.................... (22) (154)
Decrease in payables and accrued
liabilities.............................. (886) (726)
Deferred taxes and other items............. (79) 133
Net cash provided by operating activities.. 220 920
Cash Flows from Investing Activities:
Capital expenditures......................... (701) (660)
Proceeds from dispositions of property
and other assets........................... 276 128
Net investments, advances and business
acquisitions............................... (82) (48)
Other........................................ (167) 5
Net cash used in investing activities...... (674) (575)
Cash Flows from Financing Activities:
New long-term obligations.................... 182 130
Repayment of long-term obligations........... (120) (56)
Cash dividends paid.......................... (362) (345)
Issuances of common stock.................... 25 57
Acquisitions of common stock................. (313) (331)
Increase in short-term obligations........... 461 206
Net cash used in financing activities...... (127) (339)
(Decrease) increase in Cash and Marketable
Securities................................... (581) 6
Cash and Marketable Securities-
Beginning of Period.......................... 1,145 1,321
Cash and Marketable Securities-End of Period... $ 564 $ 1,327
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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. Certain information in the Consolidated Statement of
Cash Flows has been reclassified to conform to the new
presentation.
Amoco adopted Statement of Position ("SOP") 98-1, "Accounting For
the Costs of Computer Software Developed or Obtained for Internal
Use" in the first quarter of 1998. The SOP requires costs of
computer software developed for internal use to be capitalized as
a long-lived asset. The capitalized costs are amortized over the
estimated useful life of the software. For the first quarter of
1998 the amount capitalized, which would had been expensed
previously, was approximately $35 million after tax.
The Corporation has determined that the U.S. dollar is the
appropriate functional currency for substantially all of its
operations. Accordingly, the U.S. dollar was adopted as the
functional currency for Amoco's European chemical operations as
well as all Fabrics operations in the first quarter of 1998. The
change in functional currency did not have a significant impact
on the Corporation's exposure to changes in currency rates or on
the results of operations.
Amoco also adopted Statement of Financial Accounting Standards
No. 130, "Reporting Comprehensive Income." Amoco's comprehensive
income is as follows:
Three Months Ended
March 31,
1998 1997
Net income............................ $ 386 $ 674
Other comprehensive income, after tax. (4) (88)
Comprehensive income.................. $ 382 $ 586
Item 2. Management's Discussion and Analysis
Results of Operations
Net income for the first quarter of 1998 was $386 million, or
$.40 per share, compared to first-quarter 1997 earnings of $674
million, or $.68 per share. Basic and fully diluted per-share
data were the same. Per-share information has been adjusted to
reflect the March 1998 two-for-one stock split.
The decline in earnings for the first quarter of 1998 primarily
resulted from significantly lower energy prices compared to a
year ago. Chemical margins were also lower in some product lines,
reflecting supply/demand imbalances associated with soft Asian
markets and new industry capacity. Partly offsetting these
factors were higher petroleum products earnings, reflecting
improved sales margins and volumes.
First-quarter 1998 earnings also benefited from an after-tax gain
of $43 million associated with ongoing divestitures of North
American exploration and production ("E&P") properties. Sales
either completed or under contract since last year are expected
to generate cumulative proceeds of more than $1.9 billion.
Sales and other operating revenues totaled $6.6 billion for the
first quarter of 1998, 18 percent lower than the $8.1 billion
reported in the corresponding 1997 period. Crude oil, natural gas
and refined products revenues declined 27 percent, 23 percent and
19 percent, respectively, primarily reflecting lower prices.
The increase in equity in income of affiliates and other income
for the first quarter 1998 reflects the previously mentioned gain
on the sale of North American E&P properties.
Purchases of crude oil, natural gas, petroleum products and
merchandise totaled $3.7 billion for the first three months of
1998, 17 percent lower than the first three months of 1997. The
decrease was primarily attributable to lower crude oil and
natural gas purchase prices.
Exploration costs of $142 million decreased nine percent from the
first-quarter of 1997, mainly due to lower dry hole costs
overseas. The increase in interest expense for the first quarter
of 1998 compared with the prior-year quarter reflected higher
long-term debt balances.
For the 12 months ended March 31, 1998, return on average
shareholders' equity was 15.0 percent compared with 17.6 percent
for the 12 months ended March 31, 1997. Return on average capital
employed was 11.8 percent for the 12-month period ended March 31,
1998, compared with 13.4 percent for the corresponding prior-year
period.
Results by Industry Segment
Three Months Ended
March 31,
(millions of dollars) 1998 1997
Exploration and Production
United States.................... $ 213 $ 365
Canada........................... 33 81
Overseas......................... 25 127
Subtotal......................... 271 573
Petroleum Products................. 99 28
Chemicals.......................... 103 147
Corporate and Other Operations*.... (87) (74)
Net Income....................... $ 386 $ 674
* 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.
Exploration and Production
Operating Statistics
Three Months Ended
March 31,
1998 1997
Net Production of Natural Gas
(million cubic feet per day)
United States.................... 2,261 2,381
Canada........................... 777 771
Overseas*........................ 1,327 1,047
Total.......................... 4,365 4,199
Net Production of Crude Oil and NGL
(thousand barrels per day)
United States--crude oil......... 151 170
--NGL............... 103 116
Canada--crude oil................ 61 50
--NGL...................... 11 10
Overseas*........................ 301 308
Total.......................... 627 654
*1998 includes Amoco's interest in affiliates'
production of 134 million cubic feet per day of natural
gas and 49 thousand barrels per day of crude oil and
NGL.
Exploration and Production - U. S.
U.S. E&P operations earned $213 million in the first three months
of 1998 compared with $365 million for the similar 1997 period.
Included in first-quarter 1998 earnings was a gain of $43
million on the sale of U.S. non-core oil and gas properties. The
decline in earnings reflected significantly lower energy prices
and lower production due to dispositions.
Amoco's first-quarter U.S. natural gas prices averaged
approximately $1.85 per thousand cubic feet ("mcf"), $.65 per mcf
below the first quarter of 1997. Amoco's crude oil prices
averaged approximately $13.80 per barrel for the quarter, a
decline of over $7.00 per barrel from the prior-year period.
Exploration and Production - Canada
Canadian operations earned $33 million in the first quarter of
1998 compared with 1997 first-quarter earnings of $81 million.
The earnings decline resulted primarily from lower energy prices.
Amoco's Canadian natural gas prices averaged approximately $1.20
per mcf for the first quarter of 1998, about $.60 lower than
1997's first quarter. Crude oil prices were about $9.50 per
barrel below the first quarter of 1997, averaging $7.50 per
barrel for the quarter, reflecting the steep decline in heavy oil
prices during the quarter.
Crude oil and natural gas liquids ("NGL") production increased 12
thousand barrels per day over the first quarter of 1997 as a
result of increased heavy oil production, which more than offset
normal field declines.
Exploration and Production - Overseas
Overseas E&P operations earned $25 million for the first three
months of 1998 compared with $127 million in the first quarter of
1997. The decline primarily reflected lower crude oil prices.
Partly offsetting were lower exploration expenses and higher
natural gas production.
Petroleum Products
Operating Statistics
Three Months Ended
March 31,
1998 1997
U.S. Refined Product Sales
(thousand barrels per day)
Gasoline......................... 638 585
Distillates...................... 361 329
Other products................... 185 157
Total.......................... 1,184 1,071
Input to U.S. Crude Units
(thousand barrels per day)......... 869 877
Refinery Utilization Rate.......... 86% 87%
Petroleum Products activities earned $99 million for the first
three months of 1998, compared with $28 million for the similar
1997 period. Higher margins and volumes on refined products more
than offset lower earnings from Canadian NGL operations,
primarily reflecting lower prices.
Chemicals
Chemical earnings of $103 million for the first quarter of 1998
compared with $147 million for the similar 1997 period. The
decline in earnings primarily reflected reduced purified
terephthalic acid ("PTA") margins, and lower olefins margins and
volumes.
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 $87
million for the first three months of 1998, compared with net
expenses after tax of $74 million in the corresponding 1997
period.
Outlook
The Corporation and the oil industry will continue to be affected
by the volatility of crude oil, natural gas and refined product
prices, and the overall supply/demand balance of the
petrochemical industry. Uncertainty in world markets,
particularly Asia, new governmental regulation and technical
advances add to the significant challenges to be addressed and
managed by Amoco.
Amoco believes it has the structure and resources to allow it to
achieve improvements in profitability and growth of its
businesses through intensive portfolio management. Amoco also
expects to continue to benefit from ongoing cost reduction
programs. Efficiency gains are expected through development of
new work processes, alliances, joint ventures, strategic
acquisitions and divestments and volume growth in its operations.
Amoco's worldwide barrel-oil-equivalent production is expected to
increase from 1996 levels by 25 percent by the year 2001, with
the largest increases expected to occur in the later years.
Significant contributions are anticipated from the deepwater Gulf
of Mexico, Trinidad, Venezuela, Argentina, Bolivia, Egypt, and
the Caspian Basin.
In the petroleum products sector, Amoco's refinery performance is
expected to improve by using a new approach and organization
which should increase revenues and improve refining utilization
simultaneously. Amoco's marketing strategy will continue to
emphasize brand product quality and growth in its position as a
convenience retailer, with an objective of increasing gasoline
volumes an average of four percent per year over the long term.
The new convenience store format, Split Second, and a renewed
commitment to the service bay, called Certicare, are both
strategies designed to increase growth in marketing operations.
Strategic alliances with such companies as McDonald's Corporation
and Fomento Economico Mexicano S.A. de C.V. in Mexico are
expected to expand.
In the chemical sector, Amoco's overall strategy is to manage its
portfolio to maximize existing business value by stronger
functional excellence, increased market focus and more efficient
management of opportunities. Amoco is in the process of
selectively increasing capacities within its chemical portfolio.
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 selectively expanding its wholly owned and
joint-venture operations.
In addition, Amoco is expanding its polypropylene capacity,
adding a 250,000 ton unit at its existing plant near Alvin,
Texas. Alpha-olefins capacity is being expanded by 100,000 tons
at a plant in Belgium.
Liquidity and Capital Resources
Cash flows from operating activities for the first three months
of 1998 amounted to $220 million compared with $920 million in
the prior-year period. Working capital of $440 million at March
31, 1998 compared with $1.0 billion at December 31, 1997. The
Corporation's current ratio was 1.08 to 1 at March 31, 1998,
compared with 1.17 to 1 at year-end 1997. 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 $6.1 billion at March 31, 1998 and $5.6
billion at year-end 1997. Debt as a percentage of debt-plus-
equity was 27.4 percent at March 31, 1998, and 25.4 percent at
year-end 1997. Amoco Corporation guarantees the public debt
obligations of Amoco Company and the public notes, bonds and
debentures of Amoco Canada Petroleum Company Ltd. ("Amoco
Canada"). Amoco also guarantees certain outstanding loans of
equity basis affiliates, which at March 31, 1998, totaled $333
million.
Cash dividends paid in the first quarter of 1998 totaled $362
million. The quarterly dividend was raised in the first quarter
of 1998 to bring the annual dividend to $1.50 per share on a post-
split basis. Amoco declared a two-for-one stock split on shares
outstanding on March 31, 1998.
Amoco is into the second year of a two-year, $2 billion stock
repurchase program. Through March 1998, 34.2 million shares of
Amoco's common stock, on a post-split basis, were repurchased at
a cost of over $1.5 billion.
Amoco is a 50 percent owner of a recently constructed power
generation plant in Colombia. Currently, it is not clear whether
an adequate fuel supply will be available to the plant on an
efficient basis. Amoco is exploring alternatives for plant fuel
supply, and evaluating its commercial options. If an alternative
fuel supply cannot be identified, recovery of Amoco's investment
of approximately $110 million would be uncertain.
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 March 31, 1998, 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
for ongoing operations. A $500 million shelf registration
statement remains on file with the Securities and Exchange
Commission to permit ready access to capital markets.
Capital and exploration expenditures for the first three months
of 1998 totaled $843 million, excluding $90 million for Amoco's
share of equity basis affiliates' spending. This compared with
$816 million for the similar 1997 period, excluding $45 million
for Amoco's share of affiliates' spending. Approximately 72
percent of the 1998 expenditures was spent in E&P operations. In
light of weaker energy prices than anticipated, the Corporation
recently reduced the 1998 capital and exploration spending plan
by eight percent, or about $340 million, to $3.9 billion, about
the same as 1997 capital and exploration expenditures.
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. These 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, demand and pricing, political stability and
economic growth in relevant areas of the world, the Corporation's
successful execution of its internal performance plans,
development and use of new technology, successful partnering,
actions of competitors, natural disasters, and other changes to
business conditions.
PART II--OTHER INFORMATION
Item 1. Legal Proceedings
Nine 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 $4.1 million.
The Internal Revenue Service ("IRS") challenged the application
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. On June 18, 1992, the IRS issued
a statutory Notice of Deficiency for additional taxes in the
amount of $466 million, plus interest, relating to 1980 through
1982. The Corporation contested the IRS statutory Notice of
Deficiency. Trial on the matter was held in April 1995, and a
decision was rendered by the U.S. Tax Court in March 1996, in
Amoco's favor. The IRS appealed the Tax Court's decision to the
U.S. Court of Appeals for the Seventh Circuit, and on March 11,
1998, the Seventh Circuit affirmed the Tax Court's prior
decision. A proposal for a comparable adjustment of foreign tax
credits is pending for the years 1983 through 1992 based upon
subsequent IRS audits. 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 effect on liquidity, results of operations, or the
consolidated financial position of the Corporation.
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
(a) The Annual Meeting of Shareholders was held on April 28,
1998.
(b) Not applicable
(c) Five persons nominated by the Board of Directors were
elected directors. Proxies for the meeting were solicited
pursuant to Regulation 14A; there was no solicitation in
opposition to management's nominees listed in the proxy
statement. Results of the election were as follows: Ruth S.
Block, shares for 411,109,093, shares withheld 9,472,402; John H.
Bryan, shares for 411,934,520, shares withheld 8,646,975; Arthur
C. Martinez, shares for 411,803,730, shares withheld 8,777,765;
Walter E. Massey, shares for 411,734,237, shares withheld
8,847,258; Michael H. Wilson, shares for 408,942,743, shares
withheld 11,638,752. Abstentions for the nominees as a group
totaled 8,400,132. With respect to the concurrence in the
appointment of Price Waterhouse LLP to serve as independent
accountants for Amoco and its subsidiaries for the fiscal year
1998, the results were as follows: shares for 416,014,875, shares
against 2,575,789 and abstentions 1,990,831. The indicated shares
are on a pre-split basis.
(d) Not applicable
Item 5. Other Information
Shown below is summarized financial data of Amoco's wholly
owned subsidiary, Amoco Company.
Three Months
Ended
March 31,
1998 1997
(millions of dollars)
Total revenues (including excise taxes)... $ 6,936 $ 8,074
Net income................................ $ 297 $ 556
March 31, Dec. 31,
1998 1997
Current assets............................ $ 6,520 $ 6,442
Total assets.............................. $30,380 $30,062
Current liabilities....................... $ 4,817 $ 5,165
Long-term debt - affiliates............... $ 4,880 $ 4,739
- other.................... $ 2,953 $ 2,791
Deferred credits.......................... $ 4,709 $ 4,663
Minority interest......................... $ 123 $ 119
Shareholder's equity...................... $12,817 $12,505
Shown below is summarized financial data of Amoco's wholly
owned subsidiary, Amoco Canada.
Three Months
Ended
March 31,
1998 1997
(millions of dollars)
Revenues.................................. $ 975 $ 1,350
Net income................................ $ 28 $ 141
March 31, Dec. 31,
1998 1997
Current assets............................ $ 998 $ 1,479
Total assets.............................. $ 3,875 $ 4,217
Current liabilities....................... $ 583 $ 948
Non-current liabilities................... $ 3,038 $ 3,043
Shareholder's equity ..................... $ 254 $ 226
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
March 31, 1998.
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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: May 14, 1998
A. J. NOCCHIERO
A. J. Nocchiero
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)
Three
Months
Ended
March 31, Year Ended December 31,
1998 1997 1996 1995 1994
Determination of Income:
Consolidated earnings
before income taxes
and minority interest.. $ 514 $3,771 $3,965 $2,404 $2,491
Fixed charges expensed by
consolidated companies. 117 452 412 406 316
Adjustments for certain
companies accounted for
by the equity method... 35 66 69 25 7
Adjusted earnings plus
fixed charges.......... $ 666 $4,289 $4,446 $2,835 $2,814
Determination of Fixed Charges:
Consolidated interest on
indebtedness (including
interest capitalized).. $ 92 $ 363 $ 317 $ 317 $ 288
Consolidated rental
expense representative
of an interest factor.. 25 102 107 89 23
Adjustments for certain
companies accounted for
by the equity method... 14 7 8 6 5
Total fixed charges...... $ 131 $ 472 $ 432 $ 412 $ 316
Ratio of earnings to
fixed charges............ 5.1 9.1 10.3 6.9 8.9
<TABLE> <S> <C>
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<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
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0
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