Oil Companies See Sharp Profit Gains

Oil companies reported Thursday that they enjoyed sharp gains in the fourth quarter, largely because of higher prices for crude oil and natural gas.

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San Francisco-based Chevron Corp.’s profit from operations rose 52% from $451 million, or 69 cents a share, in the year-ago quarter as higher crude oil prices offset wider losses in its refinery business.

The results beat the average 99-cent estimate of analysts.

Charges amounting to $221 million resulted in net income of $464 million, or 71 cents a share, in the most recent quarter.

Chevron said its refining and marketing unit’s operating loss widened to $260 million from $108 million in the year-ago quarter.

In chemicals, Chevron’s operating loss widened to $38 million, compared with a loss of $36 million a year ago, because prices increased for its raw materials, including crude oil.

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Los Angeles-based Occidental Petroleum Corp. earned $159 million, or 41 cents a share, during its latest quarter, contrasted with a loss of $16 million, or 5 cents, a year earlier, when it reorganized its oil and gas and natural gas pipeline divisions.

For the full year, Oxy’s earnings rose nearly 38% to $575 million, or $1.86 a common share, from $418 million, or $1.31, for 1995. Revenue rose from $10.4 billion to $10.6 billion, held back by a $1-billion decline in chemical sales.

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Texaco Inc.’s results rose 3.5% from $367 million, or $1.35 a share, in the year-earlier quarter as higher petroleum prices more than offset lower international exploration and production profit.

The results fell short of the average estimate of $1.54 a share.

White Plains, N.Y.-based Texaco said it missed estimates because of losses of $54 million, or 20 cents a share, as the British pound strengthened 4.7% against the U.S. dollar. In the fourth quarter, 0.611 pounds bought $1 on average.

Gains of $256 million from taxes, and charges of $127 million for asset sales and cost cutting, resulted in net income of $509 million, or $1.90 a share.

At a Glance:

Phillips Petroleum said profit from operations rose to $252 million, or 96 cents a share, from $130 million, or 50 cents, a year ago. In the most recent quarter, charges of $52 million resulted in net income of $200 million, or 76 cents a share. In the year-earlier quarter, charges of $21 million resulted in net income of $109 million, or 42 cents.

Unocal reported a fourth-quarter loss of $497 million, or $1.98 a share, contrasted with net income of $49 million, or 16 cents, in the year-ago quarter. It also reported a loss from discontinuing operations of $500 million, or $1.99 a share, relating to the pending sale of its 76 Products unit, contrasted with a gain of $16 million from discontinuing operations, or 6 cents, a year ago.