Amoco Corporation Reports Fourth-Quarter Earnings, $1.63 Per Share, Despite Market Volatility

The Amoco Corporation announced its fourth-quarter earnings, reporting a profit of $789 million or $1.63 per share. This compares to record earnings of $871 million or $1.74 per share for the same period in 1996. Chairman and CEO H. Laurance Fuller noted that the recent drop in crude oil prices, mild weather, and volatile Asian markets adversely affected the quarter's results.

Key Takeaways:

• Amoco reported fourth-quarter earnings of $789 million or $1.63 per share, down from $871 million or $1.74 per share in 1996.
• The decrease in earnings resulted from lower crude oil and NGL prices, lower production volumes, and higher corporate expenses.
• The company generated net gains of $271 million primarily associated with asset dispositions, including the sale of non-core oil and gas properties.
• Amoco's return on capital employed averaged 13.2 percent for 1997, down from 13.8 percent in 1996.
• The company completed the sale of about two-thirds of its non-core U.S. oil and gas properties and sold its intrastate natural gas pipeline unit in Texas, generating proceeds of about $1.2 billion.
• Amoco finalized its alliance with Bridas Corporation, forming Pan American Energy, and signed a natural gas production agreement for the Ha'py field in Egypt's Nile Delta.

Statistics:

• Fourth-quarter earnings: $789 million (1997) vs. $871 million (1996)
• Earnings per share: $1.63 (1997) vs. $1.74 (1996)
• Return on capital employed: 13.2% (1997) vs. 13.8% (1996)
• Net gains from asset dispositions: $271 million
• Capital and exploration expenditures: $4.0 billion (1997) vs. $4.6 billion (1996)
• Sales of non-core properties: $1.2 billion
• Crude oil and NGL production volumes: down 9% from 1996
• Natural gas production volumes: down 6% from 1996

Sources:

• Amoco Corporation, press release, January 22, 1998
• Amoco Corporation annual report, 1997
• Interview with H. Laurance Fuller, chairman and CEO of Amoco Corporation