-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QIA8Mtl2TuHaNTKwwGvxh7tv0tIhIUWvlp1SJqBGpwBVADXumOmr/wiv10AQ9scF nHDrXCEryyuMMHPIUPx9yA== 0000093397-97-000009.txt : 19970814 0000093397-97-000009.hdr.sgml : 19970814 ACCESSION NUMBER: 0000093397-97-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970813 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMOCO CORP CENTRAL INDEX KEY: 0000093397 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 361812780 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00170 FILM NUMBER: 97658025 BUSINESS ADDRESS: STREET 1: 200 E RANDOLPH DR STREET 2: MAIL CODE 3107A CITY: CHICAGO STATE: IL ZIP: 60601 BUSINESS PHONE: 3128566111 FORMER COMPANY: FORMER CONFORMED NAME: STANDARD OIL CO /IN/ DATE OF NAME CHANGE: 19850425 10-Q 1 AMOCO CORPORATION 10Q 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 June 30, 1997 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 June 30, 1997--490,814,896 PART I-- FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statement of Income (millions of dollars) Three Months Six Months Ended Ended June 30, June 30, 1997 1996 1997 1996 Revenues: Sales and other operating revenues................. $ 7,664 $ 7,831 $15,740 $15,108 Consumer excise taxes...... 868 844 1,683 1,663 Other income............... 92 90 194 208 Total revenues .......... 8,624 8,765 17,617 16,979 Costs and Expenses: Purchased crude oil, natural gas, petroleum products and merchandise. 4,215 4,399 8,673 8,274 Operating expenses......... 1,210 1,207 2,430 2,290 Petroleum exploration expenses, including exploratory dry holes.... 129 131 285 251 Selling and administrative expenses................. 475 588 1,007 1,123 Taxes other than income taxes.................... 1,060 1,040 2,105 2,067 Depreciation, depletion, amortization, and retire- ments and abandonments... 530 553 1,092 1,091 Interest expense........... 94 45 172 105 Total costs and expenses. 7,713 7,963 15,764 15,201 Income before income taxes... 911 802 1,853 1,778 Income taxes................. 289 202 557 450 Net income................... $ 622 $ 600 $ 1,296 $ 1,328 Weighted average number of shares of common stock outstanding (in thousands). 492,179 497,071 493,733 496,874 Per Share Data (Based on weighted average shares outstanding): Net income................... $ 1.26 $ 1.20 $ 2.62 $ 2.67 Cash dividends per share..... $ .70 $ .65 $ 1.40 $ 1.30 Consolidated Statement of Financial Position (millions of dollars) June 30, Dec. 31, ASSETS 1997 1996 Current assets: Cash......................................... $ 318 $ 186 Marketable securities -- at cost (all corporate except $10 at June 30, 1997, and $141 at December 31, 1996 which represent state and municipal securities)............ 562 1,135 Accounts and notes receivable (less allowances of $18 at June 30, 1997, and $17 at December 31, 1996)...................... 3,588 3,942 Inventories Crude oil and products..................... 952 795 Materials and supplies..................... 280 274 Prepaid expenses and income taxes............ 848 731 Total current assets....................... 6,548 7,063 Investments and Other Assets: Investments and related advances............. 929 796 Long-term receivables and other assets....... 1,241 841 2,170 1,637 Properties--at cost, less accumulated depre- ciation, depletion and amortization of $27,722 at June 30, 1997, and $27,111 at December 31, 1996 (The successful efforts method of accounting is followed for costs incurred in oil and gas producing activities) 23,948 23,400 Total assets............................... $ 32,666 $ 32,100 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term obligations..... $ 161 $ 151 Short-term obligations....................... 1,110 821 Accounts payable............................. 2,767 3,196 Accrued liabilities.......................... 973 908 Taxes payable (including income taxes)....... 1,016 1,063 Total current liabilities.................. 6,027 6,139 Long-term obligations: Debt......................................... 4,455 4,153 Capitalized leases........................... 89 76 4,544 4,229 Deferred Credits and Other Non-Current Liabilities: Income taxes................................. 3,085 2,850 Other........................................ 2,224 2,345 5,309 5,195 Minority Interest.............................. 441 129 Shareholders' Equity: Common stock (authorized 800,000,000 shares; issued and outstanding at June 30, 1997 --490,814,896; December 31, 1996 --497,275,364 shares)...................... 2,598 2,646 Earnings retained and invested in the business................................... 13,866 13,806 Pension liability adjustment................. (25) (25) Foreign currency translation adjustment...... (94) (19) 16,345 16,408 Total liabilities and shareholders' equity. $ 32,666 $ 32,100 Consolidated Statement of Cash Flows (millions of dollars) Six Months Ended June 30, 1997 1996 Cash Flows from Operating Activities: Net income.................................. $ 1,296 $ 1,328 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, amortization, and retirements and abandonments........ 1,092 1,091 Decrease in receivables................... 399 48 Increase in inventories................... (154) (138) Decrease in payables and accrued liabilities............................. (475) (292) Deferred taxes and other items............ (55) (267) Net cash provided by operating activities. 2,103 1,770 Cash Flows from Investing Activities: Capital expenditures........................ (1,619) (1,707) Proceeds from dispositions of property and other assets.......................... 274 286 Net investments, advances and business acquisitions.............................. (470) (600) Proceeds from sales of investments.......... 11 100 Other....................................... - 19 Net cash used in investing activities..... (1,804) (1,902) Cash Flows from Financing Activities: New long-term obligations................... 337 82 Repayment of long-term obligations.......... (83) (317) Cash dividends paid......................... (694) (635) Issuance of common stock................... 69 34 Acquisitions of common stock................ (658) - Increase in short-term obligations.......... 289 406 Net cash used in financing activities..... (740) (430) Decrease in Cash and Marketable Securities.... (441) (562) Cash and Marketable Securities- Beginning of Period......................... 1,321 1,394 Cash and Marketable Securities-End of Period.. $ 880 $ 832 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. Item 2. Management's Discussion and Analysis Results of Operations Net income for the second quarter of 1997 amounted to $622 million, or $1.26 per share compared with second-quarter 1996 earnings of $600 million. The increase in earnings reflected higher refining margins and increased volumes in petroleum products and most chemical product lines. Partially offsetting were lower worldwide crude oil prices and lower North American crude oil and natural gas production. Net income for the first six months of 1997 totaled $1,296 million or $2.62 per share. Net income for the first six months of 1996 amounted to $1,272 million, excluding first-quarter 1996 gains of $56 million after tax on certain Canadian asset dispositions. Favorably affecting 1997 earnings were higher exploration and production ("E&P") results, primarily due to higher energy prices earlier in the year, and improved petroleum products operations. Offsetting were lower chemical earnings compared to 1996, mainly as a result of lower paraxylene margins. Sales and other operating revenues for the second quarter of 1997 totaled $7.7 billion, slightly lower than the corresponding 1996 period. For the first six months of 1997 revenues increased four percent compared to the similar period in 1996, reflecting higher prices for natural gas, crude oil and refined products. Purchases of crude oil, natural gas, petroleum products and merchandise totaled $4.2 billion for the second quarter of 1997, four percent lower than 1996's second quarter. The decrease was primarily attributable to lower crude oil purchase prices and volumes. Year-to-date purchases in 1997 were higher than the 1996 six-month period primarily due to higher refined products volumes. Second-quarter 1997 operating expenses were about the same as the second quarter of 1996. Operating expenses for the first six months were six percent above the prior-year period, reflecting higher refining maintenance expenses in the first quarter and higher U.S. production costs. For the first six months of 1997, exploration expenses increased 14 percent over the similar period in 1996, mainly due to higher dry hole costs overseas. Selling and administrative expenses totaled $475 million and $1,007 million for the second quarter and first six months of 1997, compared with $588 million and $1,123 million for the respective 1996 periods. Reflected in the second quarter 1997 results were favorable before-tax currency effects of $9 million compared with unfavorable before-tax currency effects of $19 million in the second quarter of 1996. Interest expense increased $49 million and $67 million for the second quarter and first six months of 1997, respectively. Included in the second quarter of 1996 was lower interest expense on tax obligations. For the 12 months ended June 30, 1997, return on average shareholders' equity was 17.6 percent compared with 14.2 percent for the 12 months ended June 30, 1996. Return on average capital employed was 13.4 percent for the 12-month period ended June 30, 1997, compared with 11.1 percent for the corresponding prior-year period. Results by Industry Segment As previously announced, Amoco changed the basis upon which operations are grouped for the purpose of business segment reporting to maintain alignment with changes made in its internal structure. Canadian supply and marketing operations for crude oil, sulfur and natural gas liquids are now included in the Petroleum Products segment. Previously, those businesses were reported in the E&P segment. Segment earnings for 1996 have been restated to conform to the new basis. Three Months Six Months Ended Ended June 30, June 30, (millions of dollars) 1997 1996 1997 1996 Exploration and Production United States.............. $ 209 $ 234 $ 574 $ 515 Canada..................... 22 26 103 116 Overseas................... 67 85 194 206 Subtotal................... 298 345 871 837 Petroleum Products........... 185 119 213 181 Chemicals.................... 185 173 332 413 Corporate and Other Operations*............... (46) (37) (120) (103) Net Income................. $ 622 $ 600 $1,296 $1,328 * 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. Operating Statistics Three Months Six Months Ended Ended June 30, June 30, 1997 1996 1997 1996 Net Production of Natural Gas(million cubic feet per day) United States............ 2,415 2,559 2,399 2,572 Canada................... 727 815 749 830 Overseas................. 962 931 1,006 1,006 Total.................. 4,104 4,305 4,154 4,408 Net Production of Crude Oil and NGL(thousand barrels per day) United States--crude oil. 164 180 167 182 --NGL....... 110 114 115 111 Canada--crude oil........ 52 46 51 49 --NGL.............. 10 12 10 12 Overseas................. 295 310 301 301 Total.................. 631 662 644 655 U.S. Refined Product Sales (thousand barrels per day) Gasoline................. 684 628 635 620 Distillates.............. 332 366 331 366 Other products........... 202 217 179 182 Total.................. 1,218 1,211 1,145 1,168 Input to U.S. Crude Units (thousand barrels per day) 961 977 919 945 Refinery Utilization Rate 95% 97% 91% 94% Exploration and Production - U. S. U.S. E&P operations earned $209 million during the second quarter of 1997 compared with $234 million for the similar 1996 period. The decrease primarily resulted from lower crude oil prices and lower crude oil and natural gas production. Partly offsetting were lower exploration expenses and higher natural gas prices. Earnings of $574 million for first six months of 1997 increased 11 percent over the comparable 1996 period, primarily reflecting higher natural gas prices offset by lower production due to normal field declines and dispositions. Amoco's second-quarter U.S. natural gas prices averaged approximately $1.70 per thousand cubic feet ("mcf"), an increase of three percent over the comparable period of 1996. Amoco's average U.S. crude oil prices of about $17.60 per barrel declined $1.90 per barrel from the second quarter of 1996. For the first half of 1997, Amoco's U.S. natural gas prices averaged about $2.05 per mcf, about a 35 cent increase over the prior-year period. Amoco's U.S. crude oil prices averaged almost $19.20 per barrel during the first six months of 1997, a four percent increase over the comparable 1996 period. Exploration and Production - Canada Canadian operations earned $22 million in the second quarter of 1997 compared with restated 1996 second-quarter earnings of $26 million. The slight decrease in 1997 earnings primarily reflected lower crude oil prices and lower natural gas production, which more than offset lower exploration expenses and higher natural gas prices. Earnings for the first half of 1997 totaled $103 million compared with six-month restated 1996 earnings of $60 million, excluding gains of $56 million on the sale of assets. The operating earnings improvement resulted primarily from higher natural gas prices and lower exploration expenses, partially offset by lower production due to property dispositions and natural field declines. Amoco's Canadian natural gas prices averaged $1.15 per mcf for the quarter, about 10 cents higher than the second quarter of 1996. For the first six months, Canadian natural gas prices increased 35 percent over the comparable 1996 period to average about $1.50 per mcf. Canadian crude oil prices averaged $14.00 per barrel for the second quarter of 1997, 27 percent below the prior-year second quarter average, reflecting the increase in lower-priced heavy oil production. For the first half of 1997, Canadian crude oil prices averaged about $15.40 per barrel, an eight percent decrease from the 1996 level. Exploration and Production - Overseas Overseas E&P operations earned $67 million in the second quarter of 1997 compared with $85 million in the second quarter of 1996. The decline was primarily due to lower crude oil prices and higher exploration expenses. For the first six months of 1997, overseas E&P operations earned $194 million, a decline of $12 million from the comparable prior-year period. The decrease mainly reflected higher exploration expenses, which more than offset favorable currency effects and increased energy prices. Second-quarter 1997 natural gas production increased due to incremental production in Bolivia. Crude oil production for the second quarter of 1997 declined as incremental production from Bolivia and Venezuela more than offset declines elsewhere. On an energy equivalent basis, year-to-date 1997 production was the same as the year-earlier period. Petroleum Products Petroleum Products activities earned $185 million for the second quarter compared with restated earnings of $119 million in the second quarter of 1996. The 1996 earnings were restated to reflect the transfer of Canadian supply and marketing operations for crude oil, sulfur and natural gas liquids to the petroleum products segment. The increase in second-quarter 1997 earnings primarily resulted from stronger U.S. refined product margins and favorable product mix. Second-quarter 1997 earnings from Canadian supply and marketing operations declined from the second quarter of 1996, reflecting lower natural gas liquids ("NGL") margins. Earnings for the first half of 1997 totaled $213 million, an increase of 18 percent over the comparable period in 1996. The increase reflects higher U.S. refined product margins and favorable product mix. Partly offsetting were higher refining maintenance costs and lower throughput experienced in the first quarter of 1997, reflecting planned turnaround at Amoco's largest refineries. Earnings for Canadian supply and marketing operations for the first six months of 1997 were about the same as the year- earlier period. Chemicals Chemical earnings of $185 million for the second quarter of 1997 compared with $173 million for the similar 1996 period. The increase in earnings primarily reflected increased productive capacity, strengthening worldwide sales volumes for most product lines and higher olefins margins, which more than offset lower paraxylene margins. For the first six months of 1997 earnings totaled $332 million compared with $413 million for the same period in 1996. The decline in earnings resulted from lower paraxylene and purified terephthalic acid ("PTA") margins partly offset by increased sales volumes and higher olefins margins. 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 $46 million and $120 million for the second quarter and first half of 1997, respectively, compared with net expenses after tax of $37 million and $103 million in the corresponding 1996 periods. Outlook The Corporation and the petroleum industry will continue to be affected by the volatility of crude oil and natural gas prices. Also affecting chemicals and petroleum products activities is the overall industry product supply and demand balance. Amoco's future performance is expected to continue to be impacted by ongoing cost reduction programs; the divestment of non-strategic assets; application of new technologies; and new governmental regulations. Amoco will pursue areas that capitalize on its natural gas resources and continue to expand internationally. As announced in June, Amoco plans to divest a number of its oil and gas properties and royalty interests in the United States as part of a major refocusing of its U.S. exploration and production business. The properties account for about 10 percent of U.S. net production. The proceeds from the divestments will be used to fund growth opportunities in and outside North America and for general corporate purposes. Amoco's worldwide barrel-oil-equivalent production is expected to increase from 1996 levels by 25 percent over the next five years, with the largest increases expected to occur in the later years. Production in 1997 is expected to decrease slightly from year-end 1996, with incremental production from the Gulf of Mexico, and production from Venezuela, Colombia and Bolivia, being offset by normal field declines and dispositions. In petroleum products, Amoco does not anticipate a significant improvement in U.S. industry refining margins in the near term. Amoco will continue to pursue additional cost reduction programs and improved asset utilization. Amoco's marketing strategy will continue to emphasize brand product quality and growth in its position as a convenience retailer. Strategic alliances with such companies as McDonald's Corporation and Femsa in Mexico are expected to continue. In chemicals, Amoco's overall strategy is to manage its portfolio to optimize the quality of its businesses through acquisitions and divestments, and selectively invest in local market growth for existing businesses. 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 expanding its wholly owned and joint-ventures operations. Liquidity and Capital Resources Cash flows from operating activities for the first six months of 1997 amounted to $2,103 million compared with $1,770 million in the prior-year period. Working capital of $521 million at June 30, 1997 compared with $924 million at December 31, 1996. The Corporation's current ratio was 1.09 to 1 at June 30, 1997, compared with 1.15 to 1 at year-end 1996. 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. Long-term receivables and other assets at June 30, 1997 included $280 million in restricted cash and investments committed to the operatorship of a Bolivian oil and gas company, Empresa Petrolera Chaco. Amoco completed the agreement for operatorship and 50 percent ownership of Empresa Petrolera Chaco in April 1997. Amoco's debt totaled $5.7 billion at June 30, 1997 and $5.1 billion at year-end 1996. Debt as a percentage of debt-plus- equity was 25.4 percent at June 30, 1997, and 23.6 percent at year-end 1996. Amoco Corporation guarantees the public debt obligations of Amoco Company. Amoco Corporation and Amoco Company guarantee the public notes and debentures of Amoco Canada Petroleum Company Ltd. ("Amoco Canada") and Amoco Argentina Oil Company ("Amoco Argentina"). For the first six months of 1997, 6.9 million shares of Amoco's common stock, in excess of amounts needed for benefit plan purposes, were repurchased at a cost of $602 million as part of the $2 billion, two-year common stock repurchase program. 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 June 30, 1997, 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 other business needs. In early August 1997, Amoco Company issued $300 million in 10-year, 6.5% guaranteed notes from a $500 million Securities and Exchange Commission ("SEC") shelf registration statement. Capital and exploration expenditures for the first six months of 1997 totaled $1,904 million. Excluded from this amount were expenditures related to Empresa Petrolera Chaco. Capital and exploration expenditures for the first six months of 1996 amounted to $1,958 million, excluding the purchase of Albemarle Corporation's alpha-olefins, poly alpha-olefins and synthetic alcohol businesses. 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. The 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 and pricing, political stability and economic growth in relevant areas of the world, Amoco's successful execution of its internal performance plans, successful partnering, actions of competitors, natural disasters and other changes to business conditions. PART II--OTHER INFORMATION Item 1. Legal Proceedings Reference is made to the description of the challenge by the Internal Revenue Service 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 in Part I, Item 3 of Amoco's 1996 Form 10-K. Twelve 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 $7.5 million. 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 Not applicable. Item 5. Other Information Shown below is summarized financial information for Amoco's wholly owned subsidiary, Amoco Company. Three Months Six Months Ended Ended June 30, June 30, 1997 1996 1997 1996 (millions of dollars) Total revenues(including excise taxes)........... $7,826 $8,026 $15,900 $15,430 Net income.............. $ 546 $ 510 $ 1,102 $ 1,108 June 30, Dec. 31, 1997 1996 (millions of dollars) Current assets................. $ 6,896 $ 6,361 Total assets................... $30,995 $29,208 Current liabilities............ $ 4,972 $ 4,926 Long-term debt-affiliates...... $ 4,803 $ 4,731 -other........... $ 2,519 $ 2,190 Deferred credits............... $ 4,646 $ 4,524 Minority interest.............. $ 427 $ 131 Shareholder's equity........... $13,539 $12,630 Shown below is summarized financial information for Amoco's wholly owned subsidiary, Amoco Canada. Three Months Six Months Ended Ended June 30, June 30, 1997 1996 1997 1996 (millions of dollars) Revenues................ $1,057 $1,008 $2,407 $2,041 Net income(loss)........ $ (4) $ 54 $ 137 $ 147 June 30, Dec. 31, 1997 1996 (millions of dollars) Current assets.................. $ 1,528 $ 1,615 Total assets.................... $ 4,233 $ 4,412 Current liabilities............. $ 782 $ 1,110 Non-current liabilities......... $ 3,389 $ 3,377 Shareholder's equity(deficit)... $ 62 $ (75) Shown below is summarized financial information for Amoco's indirectly wholly owned subsidiary, Amoco Argentina. Three Months Six Months Ended Ended June 30, June 30, 1997 1996 1997 1996 (millions of dollars) Revenues................ $ 68 $ 79 $153 $154 Net income.............. $ 24 $ 29 $ 56 $ 56 June 30, Dec. 31, 1997 1996 (millions of dollars) Current assets ................. $ 61 $251 Total assets.................... $458 $613 Current liabilities............. $106 $ 87 Non-current liabilities......... $280 $237 Shareholder's equity ........... $ 72 $289 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) A current report on Form 8-K dated April 14, 1997, was filed to restate segment earnings for the years 1996, 1995 and 1994, and quarterly segment earnings for 1996 and 1995. The Corporation changed the basis upon which operations are grouped for the purpose of business segment reporting to maintain alignment with changes made in its internal structure. Beginning with the first quarter of 1997, Canadian supply and marketing operations for crude oil, sulfur and natural gas liquids are included in the Petroleum Products segment. Previously, those businesses were reported in the E&P segment. 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: August 13, 1997 Judith G. Boynton Judith G. Boynton Vice President and Controller (Duly Authorized and Chief Accounting Officer) EX-12 2 EXHIBIT 12 EXHIBIT 12 AMOCO CORPORATION ______________________ STATEMENT SETTING FORTH COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (millions of dollars, except ratios) Six Months Ended Year Ended December 31, June 30, 1997 1996 1995 1994 1993 1992 Determination of Income: Consolidated earnings before income taxes and minority interest $1,853 $3,965 $2,404 $2,491 $2,506 $ 998 Fixed charges expensed by consolidated companies............ 218 412 406 316 350 376 Adjustments for certain companies accounted for by the equity method............... (13) 69 25 7 11 28 Adjusted earnings plus fixed charges........ $2,058 $4,446 $2,835 $2,814 $2,867 $1,402 Determination of Fixed Charges: Consolidated interest on indebtedness (including interest capitalized)......... $ 173 $ 317 $ 317 $ 288 $ 299 $ 333 Consolidated rental expense representa- tive of an interest factor............... 51 107 89 23 50 44 Adjustments for certain companies accounted for by the equity method............... 4 8 6 5 8 20 Total fixed charges.... $ 228 $ 432 $ 412 $ 316 $ 357 $ 397 Ratio of earnings to fixed charges.......... 9.0 10.3 6.9 8.9 8.0 3.5 EX-27 3 EXHIBIT 27
5 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. 0000093397 AMOCO CORPORATION 1,000,000 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 318 562 3606 18 1232 6548 51670 27722 32666 6027 4455 0 0 2598 13747 32666 15740 17617 11388 11388 3197 0 172 1853 557 1296 0 0 0 1296 2.62 0
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