Exxon, Ashland Post Big Gains; Arco Profit Dips

Oil giant Exxon Corp. said Monday that its second-quarter profit soared nearly seven-fold from a year ago, when it set aside a special provision to handle the massive cleanup from the oil spill in Valdez, Alaska.

Another big oil company, Los Angeles-based Atlantic Richfield Co., reported that earnings fell 16%, while independent producer Ashland Oil Co. said its earnings more than doubled in the quarter.

New York-based Exxon earned $1.1 billion in the three months ended June 30, compared to $140 million in the 1989 quarter. Revenue totaled $26.08 billion, up 10% from $23.61 billion a year ago.

Last year’s results included an $850-million provision for the Valdez spill. Without that, Exxon said, it would have earned $990 million in the 1989 quarter.

Arco’s second-quarter earnings fell to $391 million from $467 million in 1989. Sales of the Los Angeles company fell 7% to $4 billion from $4.3 billion.

Ashland, based in Ashland, Ky., reported record net income of $100 million for the quarter ended June 30, 1990. The amount was more than double the $44 million in 1989. Sales were $2.2 billion, the same as in last year’s quarter.

Exxon Chairman L. G. Rawl said earnings from petroleum and natural gas operations increased $205 million, or 22%, despite lower crude prices. He said that helped offset a $115-million drop in chemical earnings.

Earnings from U.S. exploration and production activities were $81 million, down from $289 million in 1989. But earnings from foreign exploration and production operations rose $75 million to $464 million.

From coal and minerals operations, Exxon earned $12 million, compared to $22 million last year.

For the first half of 1990, Exxon earned $2.38 billion, up 22% from $1.95 billion in 1989. Revenue rose 15% to $52 billion.

The 1989 results included an $880-million provision related to the Valdez accident and a $535-million cumulative accounting gain following adoption of new income tax accounting standards.

Exxon said it would have earned $2.29 billion in the 1989 half year excluding the provision and special gain.

Arco said lower crude oil prices, less production in Alaska and higher international exploration expenses more than offset a sharp rise in profits from refining and marketing operations.