Oil Refiners Benefit From Lower Prices

The big oil companies’ earnings in the July-September quarter showed mixed effects from the lowest oil prices in years. The cheap oil helped refiners but hurt companies that concentrate more on pumping.

Higher natural-gas prices were also helpful.

Unocal’s earnings were up more than sixfold, but were skewed by onetime charges a year ago. Exxon Corp.’s earnings rose nearly 19%, partly because of special gains.

Unocal earned $70 million, or 25 cents a share, on revenue of $1.96 billion. A year ago, the Los Angeles-based company had a profit of $11 million, or 1 cent a share, on revenue of $2.51 billion.

Onetime charges, however, distorted the picture of Unocal’s performance. Not counting charges for environmental, litigation, restructuring and other costs, the company earned $91 million, or 34 cents a share, compared to $65 million, or 24 cents a share. That amounted to a 40% gain.

Unocal’s stock rose 62.5 cents to $30.125 a share on the New York Stock Exchange.

Exxon, based in the Dallas suburb of Irving, reported a profit of $1.36 billion, or $1.09 a share, for the quarter. It earned $1.15 billion, or 91 cents a share, in the third quarter of 1992. Revenue fell 9% to $27.92 billion, from $30.64 billion.

The country’s largest oil company said that higher natural-gas prices, profit on refined products and the low cost of crude helped its earnings. Lower overhead was also a major factor.

Exxon also recorded $306 million in onetime benefits from sales of assets, tax credits and other gains. The equivalent period a year ago was increased $131 million by special charges. Without the special gains, earnings were up 5%.

Exxon’s stock Monday rose $1 a share to $65.625 on the New York Stock Exchange.