-----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, VtSZOhDl+Yiztf4nadCZzADgwYi3XfZ4HI0lJ1wkwduOfUqViNyMZJ7E9hcLM4Mk l2DjRO+Wyqfnh3IoDX9kUw== 0000093397-98-000004.txt : 19980515 0000093397-98-000004.hdr.sgml : 19980515 ACCESSION NUMBER: 0000093397-98-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 SROS: CSX SROS: NYSE SROS: PCX FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMOCO CORP CENTRAL INDEX KEY: 0000093397 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 363353184 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-00170 FILM NUMBER: 98620430 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 10-Q 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 March 31, 1998 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 March 31, 1998--959,627,584 PART I-- FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statement of Income (millions of dollars, except as noted) Three Months Ended March 31, 1998 1997 Revenues: Sales and other operating revenues............ $ 6,633 $ 8,076 Consumer excise taxes......................... 846 815 Equity in income of affiliates and other income................................ 164 102 Total revenues.............................. 7,643 8,993 Cost and Expenses: Purchased crude oil, natural gas, petroleum products and merchandise.......... 3,684 4,458 Operating expenses............................ 1,106 1,220 Petroleum exploration expenses, including exploratory dry holes............. 142 156 Selling and administrative expenses........... 559 532 Taxes other than income taxes................. 996 1,045 Depreciation, depletion, amortization, and retirements and abandonments............ 548 562 Interest expense.............................. 94 78 Total costs and expenses.................... 7,129 8,051 Income before income taxes...................... 514 942 Income taxes.................................... 128 268 Net income...................................... $ 386 $ 674 Weighted average number of shares of common stock outstanding (in thousands) Basic......................................... 962,042 990,573 Assuming dilution............................. 966,588 996,119 Per Share Data (Based on weighted average shares outstanding): Net income (basic).............................. $ .40 $ .68 Net income (assuming dilution).................. $ .40 $ .68 Cash dividends.................................. $ .375 $ .35 ___________________ All share data reflect the March 31, 1998 two-for-one common stock split. Consolidated Statement of Financial Position (millions of dollars) March 31, Dec. 31, ASSETS 1998 1997 Current assets: Cash......................................... $ 142 $ 166 Marketable securities -- at cost (corporate securities, except $104 at December 31, 1997 which represents state and municipal 422 979 securities). Accounts and notes receivable (less allowances of $11 at March 31, 1998, and $10 on December 31, 1997).................. 3,302 3,585 Inventories Crude oil and products..................... 921 914 Materials and supplies..................... 274 260 Prepaid expenses, income taxes and other..... 961 1,140 Total current assets....................... 6,022 7,044 Investments and Other Assets: Investments and related advances............. 2,162 2,099 Long-term receivables and other assets....... 1,054 803 3,216 2,902 Properties--at cost, less accumulated depre- ciation, depletion and amortization of $27,300 at March 31, 1998, and $26,814 at December 31, 1997 (The successful efforts method of accounting is followed for costs incurred in oil and gas producing activities) 22,643 22,543 Total assets............................... $ 31,881 $ 32,489 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term obligations..... $ 145 $ 218 Short-term obligations....................... 1,212 751 Accounts payable............................. 2,499 3,026 Accrued liabilities.......................... 810 785 Taxes payable (including income taxes)....... 916 1,264 Total current liabilities.................. 5,582 6,044 Long-term obligations: Debt......................................... 4,780 4,639 Capitalized leases........................... 82 80 4,862 4,719 Deferred Credits and Other Non-Current Liabilities: Income taxes................................. 2,914 2,868 Other........................................ 2,299 2,408 5,213 5,276 Minority Interest.............................. 167 131 Shareholders' Equity: Common stock (authorized 1,600,000,000 shares; issued and outstanding at March 31, 1998 --959,627,584; December 31, 1997 --966,047,616 shares)...................... 2,546 2,568 Earnings retained and invested in the business................................... 13,664 13,900 Accumulated other comprehensive income: Pension liability adjustment............... (31) (31) Foreign currency translation adjustment.... (122) (118) 16,057 16,319 Total liabilities and shareholders' equity. $ 31,881 $ 32,489 Consolidated Statement of Cash Flows (millions of dollars) Three Months Ended March 31, 1998 1997 Cash Flows from Operating Activities: Net income................................... $ 386 $ 674 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, amortization, and retirements and abandonments......... 548 562 Decrease in receivables.................... 273 431 Increase in inventories.................... (22) (154) Decrease in payables and accrued liabilities.............................. (886) (726) Deferred taxes and other items............. (79) 133 Net cash provided by operating activities.. 220 920 Cash Flows from Investing Activities: Capital expenditures......................... (701) (660) Proceeds from dispositions of property and other assets........................... 276 128 Net investments, advances and business acquisitions............................... (82) (48) Other........................................ (167) 5 Net cash used in investing activities...... (674) (575) Cash Flows from Financing Activities: New long-term obligations.................... 182 130 Repayment of long-term obligations........... (120) (56) Cash dividends paid.......................... (362) (345) Issuances of common stock.................... 25 57 Acquisitions of common stock................. (313) (331) Increase in short-term obligations........... 461 206 Net cash used in financing activities...... (127) (339) (Decrease) increase in Cash and Marketable Securities................................... (581) 6 Cash and Marketable Securities- Beginning of Period.......................... 1,145 1,321 Cash and Marketable Securities-End of Period... $ 564 $ 1,327 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. Certain information in the Consolidated Statement of Cash Flows has been reclassified to conform to the new presentation. Amoco adopted Statement of Position ("SOP") 98-1, "Accounting For the Costs of Computer Software Developed or Obtained for Internal Use" in the first quarter of 1998. The SOP requires costs of computer software developed for internal use to be capitalized as a long-lived asset. The capitalized costs are amortized over the estimated useful life of the software. For the first quarter of 1998 the amount capitalized, which would had been expensed previously, was approximately $35 million after tax. The Corporation has determined that the U.S. dollar is the appropriate functional currency for substantially all of its operations. Accordingly, the U.S. dollar was adopted as the functional currency for Amoco's European chemical operations as well as all Fabrics operations in the first quarter of 1998. The change in functional currency did not have a significant impact on the Corporation's exposure to changes in currency rates or on the results of operations. Amoco also adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income." Amoco's comprehensive income is as follows: Three Months Ended March 31, 1998 1997 Net income............................ $ 386 $ 674 Other comprehensive income, after tax. (4) (88) Comprehensive income.................. $ 382 $ 586 Item 2. Management's Discussion and Analysis Results of Operations Net income for the first quarter of 1998 was $386 million, or $.40 per share, compared to first-quarter 1997 earnings of $674 million, or $.68 per share. Basic and fully diluted per-share data were the same. Per-share information has been adjusted to reflect the March 1998 two-for-one stock split. The decline in earnings for the first quarter of 1998 primarily resulted from significantly lower energy prices compared to a year ago. Chemical margins were also lower in some product lines, reflecting supply/demand imbalances associated with soft Asian markets and new industry capacity. Partly offsetting these factors were higher petroleum products earnings, reflecting improved sales margins and volumes. First-quarter 1998 earnings also benefited from an after-tax gain of $43 million associated with ongoing divestitures of North American exploration and production ("E&P") properties. Sales either completed or under contract since last year are expected to generate cumulative proceeds of more than $1.9 billion. Sales and other operating revenues totaled $6.6 billion for the first quarter of 1998, 18 percent lower than the $8.1 billion reported in the corresponding 1997 period. Crude oil, natural gas and refined products revenues declined 27 percent, 23 percent and 19 percent, respectively, primarily reflecting lower prices. The increase in equity in income of affiliates and other income for the first quarter 1998 reflects the previously mentioned gain on the sale of North American E&P properties. Purchases of crude oil, natural gas, petroleum products and merchandise totaled $3.7 billion for the first three months of 1998, 17 percent lower than the first three months of 1997. The decrease was primarily attributable to lower crude oil and natural gas purchase prices. Exploration costs of $142 million decreased nine percent from the first-quarter of 1997, mainly due to lower dry hole costs overseas. The increase in interest expense for the first quarter of 1998 compared with the prior-year quarter reflected higher long-term debt balances. For the 12 months ended March 31, 1998, return on average shareholders' equity was 15.0 percent compared with 17.6 percent for the 12 months ended March 31, 1997. Return on average capital employed was 11.8 percent for the 12-month period ended March 31, 1998, compared with 13.4 percent for the corresponding prior-year period. Results by Industry Segment Three Months Ended March 31, (millions of dollars) 1998 1997 Exploration and Production United States.................... $ 213 $ 365 Canada........................... 33 81 Overseas......................... 25 127 Subtotal......................... 271 573 Petroleum Products................. 99 28 Chemicals.......................... 103 147 Corporate and Other Operations*.... (87) (74) Net Income....................... $ 386 $ 674 * 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. Exploration and Production Operating Statistics Three Months Ended March 31, 1998 1997 Net Production of Natural Gas (million cubic feet per day) United States.................... 2,261 2,381 Canada........................... 777 771 Overseas*........................ 1,327 1,047 Total.......................... 4,365 4,199 Net Production of Crude Oil and NGL (thousand barrels per day) United States--crude oil......... 151 170 --NGL............... 103 116 Canada--crude oil................ 61 50 --NGL...................... 11 10 Overseas*........................ 301 308 Total.......................... 627 654 *1998 includes Amoco's interest in affiliates' production of 134 million cubic feet per day of natural gas and 49 thousand barrels per day of crude oil and NGL. Exploration and Production - U. S. U.S. E&P operations earned $213 million in the first three months of 1998 compared with $365 million for the similar 1997 period. Included in first-quarter 1998 earnings was a gain of $43 million on the sale of U.S. non-core oil and gas properties. The decline in earnings reflected significantly lower energy prices and lower production due to dispositions. Amoco's first-quarter U.S. natural gas prices averaged approximately $1.85 per thousand cubic feet ("mcf"), $.65 per mcf below the first quarter of 1997. Amoco's crude oil prices averaged approximately $13.80 per barrel for the quarter, a decline of over $7.00 per barrel from the prior-year period. Exploration and Production - Canada Canadian operations earned $33 million in the first quarter of 1998 compared with 1997 first-quarter earnings of $81 million. The earnings decline resulted primarily from lower energy prices. Amoco's Canadian natural gas prices averaged approximately $1.20 per mcf for the first quarter of 1998, about $.60 lower than 1997's first quarter. Crude oil prices were about $9.50 per barrel below the first quarter of 1997, averaging $7.50 per barrel for the quarter, reflecting the steep decline in heavy oil prices during the quarter. Crude oil and natural gas liquids ("NGL") production increased 12 thousand barrels per day over the first quarter of 1997 as a result of increased heavy oil production, which more than offset normal field declines. Exploration and Production - Overseas Overseas E&P operations earned $25 million for the first three months of 1998 compared with $127 million in the first quarter of 1997. The decline primarily reflected lower crude oil prices. Partly offsetting were lower exploration expenses and higher natural gas production. Petroleum Products Operating Statistics Three Months Ended March 31, 1998 1997 U.S. Refined Product Sales (thousand barrels per day) Gasoline......................... 638 585 Distillates...................... 361 329 Other products................... 185 157 Total.......................... 1,184 1,071 Input to U.S. Crude Units (thousand barrels per day)......... 869 877 Refinery Utilization Rate.......... 86% 87% Petroleum Products activities earned $99 million for the first three months of 1998, compared with $28 million for the similar 1997 period. Higher margins and volumes on refined products more than offset lower earnings from Canadian NGL operations, primarily reflecting lower prices. Chemicals Chemical earnings of $103 million for the first quarter of 1998 compared with $147 million for the similar 1997 period. The decline in earnings primarily reflected reduced purified terephthalic acid ("PTA") margins, and lower olefins margins and volumes. 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 $87 million for the first three months of 1998, compared with net expenses after tax of $74 million in the corresponding 1997 period. Outlook The Corporation and the oil industry will continue to be affected by the volatility of crude oil, natural gas and refined product prices, and the overall supply/demand balance of the petrochemical industry. Uncertainty in world markets, particularly Asia, new governmental regulation and technical advances add to the significant challenges to be addressed and managed by Amoco. Amoco believes it has the structure and resources to allow it to achieve improvements in profitability and growth of its businesses through intensive portfolio management. Amoco also expects to continue to benefit from ongoing cost reduction programs. Efficiency gains are expected through development of new work processes, alliances, joint ventures, strategic acquisitions and divestments and volume growth in its operations. Amoco's worldwide barrel-oil-equivalent production is expected to increase from 1996 levels by 25 percent by the year 2001, with the largest increases expected to occur in the later years. Significant contributions are anticipated from the deepwater Gulf of Mexico, Trinidad, Venezuela, Argentina, Bolivia, Egypt, and the Caspian Basin. In the petroleum products sector, Amoco's refinery performance is expected to improve by using a new approach and organization which should increase revenues and improve refining utilization simultaneously. Amoco's marketing strategy will continue to emphasize brand product quality and growth in its position as a convenience retailer, with an objective of increasing gasoline volumes an average of four percent per year over the long term. The new convenience store format, Split Second, and a renewed commitment to the service bay, called Certicare, are both strategies designed to increase growth in marketing operations. Strategic alliances with such companies as McDonald's Corporation and Fomento Economico Mexicano S.A. de C.V. in Mexico are expected to expand. In the chemical sector, Amoco's overall strategy is to manage its portfolio to maximize existing business value by stronger functional excellence, increased market focus and more efficient management of opportunities. Amoco is in the process of selectively increasing capacities within its chemical portfolio. 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 selectively expanding its wholly owned and joint-venture operations. In addition, Amoco is expanding its polypropylene capacity, adding a 250,000 ton unit at its existing plant near Alvin, Texas. Alpha-olefins capacity is being expanded by 100,000 tons at a plant in Belgium. Liquidity and Capital Resources Cash flows from operating activities for the first three months of 1998 amounted to $220 million compared with $920 million in the prior-year period. Working capital of $440 million at March 31, 1998 compared with $1.0 billion at December 31, 1997. The Corporation's current ratio was 1.08 to 1 at March 31, 1998, compared with 1.17 to 1 at year-end 1997. 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. Amoco's debt totaled $6.1 billion at March 31, 1998 and $5.6 billion at year-end 1997. Debt as a percentage of debt-plus- equity was 27.4 percent at March 31, 1998, and 25.4 percent at year-end 1997. Amoco Corporation guarantees the public debt obligations of Amoco Company and the public notes, bonds and debentures of Amoco Canada Petroleum Company Ltd. ("Amoco Canada"). Amoco also guarantees certain outstanding loans of equity basis affiliates, which at March 31, 1998, totaled $333 million. Cash dividends paid in the first quarter of 1998 totaled $362 million. The quarterly dividend was raised in the first quarter of 1998 to bring the annual dividend to $1.50 per share on a post- split basis. Amoco declared a two-for-one stock split on shares outstanding on March 31, 1998. Amoco is into the second year of a two-year, $2 billion stock repurchase program. Through March 1998, 34.2 million shares of Amoco's common stock, on a post-split basis, were repurchased at a cost of over $1.5 billion. Amoco is a 50 percent owner of a recently constructed power generation plant in Colombia. Currently, it is not clear whether an adequate fuel supply will be available to the plant on an efficient basis. Amoco is exploring alternatives for plant fuel supply, and evaluating its commercial options. If an alternative fuel supply cannot be identified, recovery of Amoco's investment of approximately $110 million would be uncertain. 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 March 31, 1998, 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 for ongoing operations. A $500 million shelf registration statement remains on file with the Securities and Exchange Commission to permit ready access to capital markets. Capital and exploration expenditures for the first three months of 1998 totaled $843 million, excluding $90 million for Amoco's share of equity basis affiliates' spending. This compared with $816 million for the similar 1997 period, excluding $45 million for Amoco's share of affiliates' spending. Approximately 72 percent of the 1998 expenditures was spent in E&P operations. In light of weaker energy prices than anticipated, the Corporation recently reduced the 1998 capital and exploration spending plan by eight percent, or about $340 million, to $3.9 billion, about the same as 1997 capital and exploration expenditures. 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. These 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, demand and pricing, political stability and economic growth in relevant areas of the world, the Corporation's successful execution of its internal performance plans, development and use of new technology, successful partnering, actions of competitors, natural disasters, and other changes to business conditions. PART II--OTHER INFORMATION Item 1. Legal Proceedings Nine 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 $4.1 million. The Internal Revenue Service ("IRS") challenged the application 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. On June 18, 1992, the IRS issued a statutory Notice of Deficiency for additional taxes in the amount of $466 million, plus interest, relating to 1980 through 1982. The Corporation contested the IRS statutory Notice of Deficiency. Trial on the matter was held in April 1995, and a decision was rendered by the U.S. Tax Court in March 1996, in Amoco's favor. The IRS appealed the Tax Court's decision to the U.S. Court of Appeals for the Seventh Circuit, and on March 11, 1998, the Seventh Circuit affirmed the Tax Court's prior decision. A proposal for a comparable adjustment of foreign tax credits is pending for the years 1983 through 1992 based upon subsequent IRS audits. The Corporation believes that the foreign income taxes have been reflected properly in its U.S. federal tax returns. Consequently, this dispute is not expected to have a material effect on liquidity, results of operations, or the consolidated financial position of the Corporation. 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 (a) The Annual Meeting of Shareholders was held on April 28, 1998. (b) Not applicable (c) Five persons nominated by the Board of Directors were elected directors. Proxies for the meeting were solicited pursuant to Regulation 14A; there was no solicitation in opposition to management's nominees listed in the proxy statement. Results of the election were as follows: Ruth S. Block, shares for 411,109,093, shares withheld 9,472,402; John H. Bryan, shares for 411,934,520, shares withheld 8,646,975; Arthur C. Martinez, shares for 411,803,730, shares withheld 8,777,765; Walter E. Massey, shares for 411,734,237, shares withheld 8,847,258; Michael H. Wilson, shares for 408,942,743, shares withheld 11,638,752. Abstentions for the nominees as a group totaled 8,400,132. With respect to the concurrence in the appointment of Price Waterhouse LLP to serve as independent accountants for Amoco and its subsidiaries for the fiscal year 1998, the results were as follows: shares for 416,014,875, shares against 2,575,789 and abstentions 1,990,831. The indicated shares are on a pre-split basis. (d) Not applicable Item 5. Other Information Shown below is summarized financial data of Amoco's wholly owned subsidiary, Amoco Company. Three Months Ended March 31, 1998 1997 (millions of dollars) Total revenues (including excise taxes)... $ 6,936 $ 8,074 Net income................................ $ 297 $ 556 March 31, Dec. 31, 1998 1997 Current assets............................ $ 6,520 $ 6,442 Total assets.............................. $30,380 $30,062 Current liabilities....................... $ 4,817 $ 5,165 Long-term debt - affiliates............... $ 4,880 $ 4,739 - other.................... $ 2,953 $ 2,791 Deferred credits.......................... $ 4,709 $ 4,663 Minority interest......................... $ 123 $ 119 Shareholder's equity...................... $12,817 $12,505 Shown below is summarized financial data of Amoco's wholly owned subsidiary, Amoco Canada. Three Months Ended March 31, 1998 1997 (millions of dollars) Revenues.................................. $ 975 $ 1,350 Net income................................ $ 28 $ 141 March 31, Dec. 31, 1998 1997 Current assets............................ $ 998 $ 1,479 Total assets.............................. $ 3,875 $ 4,217 Current liabilities....................... $ 583 $ 948 Non-current liabilities................... $ 3,038 $ 3,043 Shareholder's equity ..................... $ 254 $ 226 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) No reports on Form 8-K were filed during the quarter ended March 31, 1998. 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: May 14, 1998 A. J. NOCCHIERO A. J. Nocchiero 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) Three Months Ended March 31, Year Ended December 31, 1998 1997 1996 1995 1994 Determination of Income: Consolidated earnings before income taxes and minority interest.. $ 514 $3,771 $3,965 $2,404 $2,491 Fixed charges expensed by consolidated companies. 117 452 412 406 316 Adjustments for certain companies accounted for by the equity method... 35 66 69 25 7 Adjusted earnings plus fixed charges.......... $ 666 $4,289 $4,446 $2,835 $2,814 Determination of Fixed Charges: Consolidated interest on indebtedness (including interest capitalized).. $ 92 $ 363 $ 317 $ 317 $ 288 Consolidated rental expense representative of an interest factor.. 25 102 107 89 23 Adjustments for certain companies accounted for by the equity method... 14 7 8 6 5 Total fixed charges...... $ 131 $ 472 $ 432 $ 412 $ 316 Ratio of earnings to fixed charges............ 5.1 9.1 10.3 6.9 8.9 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 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 142 422 3313 11 1195 6022 49943 27300 31881 5582 4780 0 0 2546 13511 31881 6633 7643 4932 4932 1544 0 94 514 128 386 0 0 0 386 .40 .40
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