-----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, LeX2MRIIjA9qHxUd8vQLc1nVz/ElWiG+hd8Pt4HQ8gpntxm5VXMuJ+73N7gchWx0 ezSqWNkv4rz/TgaBflJGHg== 0000766916-96-000004.txt : 19961113 0000766916-96-000004.hdr.sgml : 19961113 ACCESSION NUMBER: 0000766916-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961112 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: 96659243 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 CORP 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 September 30, 1996 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 September 30, 1996-- 497,254,550 PART I-- FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statement of Income (millions of dollars) Three Months Nine Months Ended Ended September 30, September 30, 1996 1995 1996 1995 Revenues: Sales and other operating revenues................. $ 7,910 $ 6,660 $23,018 $20,094 Consumer excise taxes...... 869 859 2,532 2,502 Other income............... 239 119 447 319 Total revenues........... 9,018 7,638 25,997 22,915 Costs and Expenses: Purchased crude oil, natural gas, petroleum products and merchandise. 4,582 3,401 12,856 10,488 Operating expenses......... 1,165 1,132 3,455 3,356 Petroleum exploration expenses, including exploratory dry holes.... 165 149 416 380 Selling and administrative expenses................. 488 496 1,611 1,509 Taxes other than income taxes.................... 1,088 1,046 3,155 3,057 Depreciation, depletion, amortization, and retire- ments and abandonments... 583 532 1,674 1,590 Interest expense........... 59 84 164 259 Total costs and expenses. 8,130 6,840 23,331 20,639 Income before income taxes... 888 798 2,666 2,276 Income taxes................. 253 199 703 621 Net income................... $ 635 $ 599 $ 1,963 $ 1,655 Weighted average number of shares of common stock outstanding (in thousands). 497,203 494,060 496,984 495,078 Per Share Data (Based on weighted average shares outstanding): Net income................... $ 1.28 $ 1.21 $ 3.95 $ 3.34 Cash dividends per share..... $ .65 $ .60 $ 1.95 $ 1.80 Consolidated Statement of Financial Position (millions of dollars) Sept. 30, Dec. 31, ASSETS 1996 1995 Current Assets: Cash........................................ $ 155 $ 182 Marketable securities -- at cost (all corporate except $124 at September 30, 1996 and $184 at December 31, 1995, which represent state and municipal securities). 806 1,212 Accounts and notes receivable (less allowances of $17 at September 30, 1996, and $16 at December 31, 1995)............. 3,343 3,332 Inventories Crude oil and products.................... 838 750 Materials and supplies.................... 347 291 Prepaid expenses and income taxes........... 840 723 Total current assets...................... 6,329 6,490 Investments and Other Assets: Investments and related advances............ 665 654 Long-term receivables and other assets...... 873 655 1,538 1,309 Properties--at cost, less accumulated depre- ciation, depletion and amortization of $27,125 at September 30, 1996, and $26,531 at December 31, 1995 (the successful efforts method of accounting is followed for costs incurred in oil and gas producing activities)................................. 23,028 22,046 Total assets.............................. $30,895 $29,845 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long-term obligations.... $ 94 $ 341 Short-term obligations...................... 900 735 Accounts payable............................ 2,493 2,822 Accrued liabilities......................... 963 989 Taxes payable (including income taxes)...... 1,005 887 Total current liabilities................. 5,455 5,774 Long-Term Debt................................ 4,178 3,962 Deferred Credits and Other Non-Current Liabilities: Income taxes................................ 2,907 2,745 Other....................................... 2,366 2,401 5,273 5,146 Minority Interest............................. 124 115 Shareholders' Equity: Common stock (authorized 800,000,000 shares; issued and outstanding at September 30, 1996 --497,254,550; December 31, 1995 --496,402,697 shares)..................... 2,631 2,590 Earnings retained and invested in the business.................................. 13,299 12,295 Pension liability adjustment................ (49) (49) Foreign currency translation adjustment..... (16) 12 15,865 14,848 Total liabilities and shareholders' equity $30,895 $29,845 Consolidated Statement of Cash Flows (millions of dollars) Nine Months Ended September 30, 1996 1995 Cash Flows from Operating Activities: Net income.................................. $ 1,963 $ 1,655 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, amortization, and retirements and abandonments........ 1,674 1,590 (Increase) decrease in receivables........ (140) 94 Increase in inventories................... (111) (174) Decrease in payables and accrued liabilities............................. (181) (298) Deferred taxes and other items............ (371) (376) Net cash provided by operating activities. 2,834 2,491 Cash Flows from Investing Activities: Capital expenditures........................ (2,663) (2,367) Proceeds from dispositions of property and other assets.......................... 705 230 Net investments, advances and business acquisitions.............................. (642) (164) Proceeds from sales of investments.......... 110 - Other....................................... 15 9 Net cash used in investing activities..... (2,475) (2,292) Cash Flows from Financing Activities: New long-term obligations................... 346 245 Repayment of long-term obligations.......... (385) (277) Cash dividends paid......................... (958) (888) Issuance of common stock................... 40 31 Acquisitions of common stock................ - (661) Increase in short-term obligations.......... 165 689 Net cash used in financing activities..... (792) (861) Decrease in Cash and Marketable Securities.... (433) (662) Cash and Marketable Securities- Beginning of Period......................... 1,394 1,789 Cash and Marketable Securities-End of Period.. $ 961 $ 1,127 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 first nine months of 1996 amounted to $1,963 million, or $3.95 per share, an increase of 19 percent over net income for the first nine months of 1995 of $1,655 million, or $3.34 per share. Included in the results for the first nine months of 1996 were gains of $97 million on the sale of Amoco's polystyrene foam products business and $56 million on certain Canadian asset dispositions. Excluding these gains, first nine- month earnings totaled $1,810 million, 9 percent higher than the similar 1995 period. The increase in earnings primarily reflected higher energy prices and production volumes, partially offset by lower chemical and petroleum products margins. Net income for the third quarter of 1996 was $635 million or $1.28 per share. Benefiting earnings was the previously mentioned gain on the sale of Amoco's polystyrene foam products business. Excluding this gain, earnings were $538 million, a decline of 10 percent from 1995's third quarter net income of $599 million. Continued weakness in petroleum products and chemical margins more than offset higher energy prices and production volumes. For the 12 months ended September 30, 1996, return on average shareholders' equity was 14.0 percent compared with 15.0 percent for the 12 months ended September 30, 1995. Return on average capital employed was 10.9 percent for the 12-month period ended September 30, 1996, compared with 12.2 percent for the corresponding prior-year period. Sales and other operating revenues totaled $23 billion for the first nine months of 1996 and $7.9 billion for the third quarter, 15 and 19 percent higher, respectively, than the corresponding 1995 periods. The increase in both periods was attributable to higher crude oil, natural gas, and refined product prices and sales volumes. Chemical revenues for both the nine months and third quarter increased slightly compared with the similar 1995 periods, as acquisitions and volume increases offset lower prices. The increase in other income for both year-to-date and third quarter 1996 mainly reflected the gain on the sale of Amoco's polystyrene foam products business. Purchases of crude oil, natural gas, petroleum products and merchandise for the first nine months and third quarter of 1996 increased 23 percent and 35 percent, respectively, compared with the similar 1995 periods. The increase in both periods primarily resulted from higher crude oil and natural gas volumes and prices and increases in refined product prices. Petroleum exploration expenses increased nine and 11 percent, respectively, in the first nine months and third quarter of 1996 compared with 1995, primarily reflecting higher dry hole expenses overseas. Selling and administrative expenses for the first nine months of $1.6 billion compared with $1.5 billion for the comparable 1995 period. Included in selling and administrative expenses were ongoing reorganization costs of $98 million before tax, $10 million higher than 1995, mainly related to system redesign and new process development. Third-quarter 1996 reorganization costs totaled $31 million before tax compared to $25 million incurred in the third quarter of 1995. Also reflected in the third quarter 1996 selling and administrative expenses were favorable currency effects of $3 million, compared to unfavorable currency effects of $27 million in the third quarter of 1995. Interest expense of $164 million and $59 million for the first nine months and third quarter 1996, respectively, decreased from the corresponding 1995 periods primarily as a result of lower interest related to revised estimates of tax obligations. Net Income by Industry Segment Nine Months Third Quarter (millions of dollars) 1996 1995 1996 1995 Exploration and Production United States.......... $ 739 $ 523 $ 224 $ 159 Canada................. 224 69 35 (10) Overseas............... 310 239 104 91 Subtotal............... 1,273 831 363 240 Petroleum Products....... 200 254 92 131 Chemicals................ 630 775 217 296 Corporate and Other Operations*...... (140) (205) (37) (68) Net Income............... $1,963 $1,655 $ 635 $ 599 * 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 Nine Months Third Quarter 1996 1995 1996 1995 Net Production of Natural Gas (million cubic feet per day) United States............ 2,574 2,445 2,579 2,470 Canada................... 821 828 802 856 Overseas................. 949 901 840 820 Total.................. 4,344 4,174 4,221 4,146 Net Production of Crude Oil and NGL (thousand barrels per day) United States--crude oil. 181 185 180 182 --NGL....... 113 106 117 104 Canada--crude oil........ 50 53 50 52 --NGL.............. 12 13 11 13 Overseas................. 300 296 307 298 Total.................. 656 653 665 649 U.S. Refined Product Sales (thousand barrels per day) Gasoline................. 633 601 659 624 Distillates.............. 358 362 343 373 Other products........... 198 186 230 224 Total.................. 1,189 1,149 1,232 1,221 Input to U.S. Crude Units (thousand barrels per day) 950 920 959 978 Refinery Utilization Rate 94% 92% 95% 98% Exploration and Production - U. S. U.S. Exploration and Production ("E&P") operations earned $739 million in the first nine months of 1996 compared with $523 million for the similar 1995 period. In the third quarter of 1996 earnings increased to $224 million from $159 million in last year's third quarter. The improvement in both 1996 periods primarily reflected higher crude oil and natural gas prices and increased natural gas volumes, partly offset by higher exploration expenses. Amoco's natural gas prices for the first nine months and third quarter of 1996 averaged approximately $1.70 per thousand cubic feet ("mcf"), $.40 per mcf above the first nine months of 1995 and $.50 per mcf above the prior-year third quarter. For the first nine months of 1996, Amoco's average crude oil prices were up about $3.00 per barrel and averaged approximately $19.20 per barrel. For the third quarter 1996, crude oil prices averaged approximately $20.55 per barrel, an increase of $4.70 per barrel from 1995's third quarter average. Exploration and Production - Canada Canadian E&P earnings, which include supply and marketing of natural gas liquids ("NGL"), were $224 million and $35 million for the 1996 first nine months and third quarter, respectively, compared with earnings of $69 million and a loss of $10 million for the comparable periods of 1995. Earnings during 1996 benefited from higher energy prices, higher supply and marketing earnings, lower exploration expenses and favorable currency effects. Partially offsetting were lower crude oil and natural gas production, and a restructuring charge of about $10 million after tax primarily related to the elimination of 220 positions. Also impacting 1996 nine-month earnings were after-tax gains of $56 million on asset dispositions, including the sale of Amoco's remaining investment in Crestar Energy Inc. Amoco's Canadian natural gas prices averaged approximately $1.05 per mcf for the first nine months of 1996 compared with about $.90 per mcf for the prior-year period. For the quarter, natural gas prices increased $.10 per mcf to average approximately $.95 per mcf. Average crude oil prices for the first nine months of 1996 were approximately $17.20 per barrel, $1.80 per barrel higher than the comparable period last year. Average crude oil prices for the third quarter of 1996 increased almost $3.00 per barrel compared with the third quarter of 1995, averaging almost $18.20 per barrel for the quarter. Exploration and Production - Overseas Overseas E&P earnings were $310 million for the first nine months of 1996, an increase of $71 million over 1995's first nine-months results. Third quarter 1996 earnings were $104 million compared with $91 million for the third quarter of 1995. The growth in earnings from a year ago reflected higher crude oil prices and production volumes, which more than offset an increase in exploration expenses. Third-quarter 1996 crude oil and NGL production increased three percent compared with the prior-year period, as production of 28,000 barrels per day from the Liuhua field in the South China Sea more than offset declines elsewhere. Liuhua field production, which began in late March of this year, averaged 18,000 barrels per day for the first nine months. Petroleum Products Petroleum Products activities earned $200 million for the first nine months of 1996, compared with $254 million for the nine month period in 1995. Third quarter 1996 earnings were $92 million compared with $131 million in the third quarter of 1995. The earnings decreased from those for the same period a year ago as lower refining margins, in part reflecting higher crude oil costs, more than offset gains associated with asset dispositions. Chemicals Excluding the $97 million gain from the sale of the polystyrene foam products business, chemical operations earned $533 million for the first nine months of 1996 and $120 million in the third quarter, compared with $775 million and $296 million for the respective 1995 periods. The decrease in earnings for both periods primarily reflected significantly lower margins for olefins, paraxylene ("PX") and purified terephthalic acid ("PTA"), compared with exceptionally high levels of a year ago. Overall industry-wide inventory destocking early in the year accelerated the reduction in margins. On a year-to-date basis, margins have declined. However, chemical volumes have increased, reflecting capacity additions, partly offsetting the margin declines. PX sales volumes increased 10 percent and olefins sales volumes increased 13 percent during the first nine months of 1996 compared to the similar period in 1995. While nine-month PTA volumes declined slightly from 1995 levels, third-quarter volumes were 10 percent higher than a year ago. 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. These operations reported net expenses after tax of $140 million for the first nine months of 1996, compared with $205 million for the first nine months of 1995. Third quarter net expenses were $37 million in 1996 compared to $68 million in the third quarter of 1995. The decrease in net expenses for both periods primarily reflected lower corporate expenses and lower interest related to revised estimates of tax obligations. Year-to-date earnings were also impacted by second-quarter gains on asset dispositions, which were partly offset by unfavorable currency effects. Outlook Amoco 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 savings associated with changes in its organizational structure; ongoing cost reduction programs; the divestment of marginal properties and underperforming assets; application of new technologies; and new governmental regulations. Amoco's exploration efforts will target those areas that offer the most potential. Amoco will also continue to capitalize on its natural gas resources. In the third quarter, a contract was signed to supply Ecopetrol with up to 100 million cubic feet of natural gas daily from Amoco's Opon field in Colombia. Amoco's E&P barrel-oil-equivalent current-year production in North America is expected to remain approximately at 1995 levels. Outside North America, the Liuhua oil field in the South China Sea came onstream in late March and should benefit 1996 crude oil production by an average of over 20,000 barrels per day. Overseas natural gas production is expected to increase in 1996 compared to 1995. In the petroleum products sector, Amoco anticipates weak refining margins in the near term. Amoco's marketing strategy will continue to emphasize brand product quality and improve its position as a convenience retailer. Amoco will continue to pursue additional cost reduction programs and improved asset utilization. As recently announced, Amoco is selling its Central Europe marketing sites as part of its refocused strategy to grow retail marketing operations primarily in the Americas. The sites being sold include four existing outlets and fourteen others that are currently under construction in Poland, Romania and Bulgaria. In the chemical sector, while the near-term industry outlook remains soft for commodity chemicals, Amoco expects long-term annual worldwide volume growth to exceed three percent, with a higher increase anticipated in the Asia-Pacific region. PTA average annual growth is expected to be eight percent over the next decade, with the largest demand increase expected to be in the Asia-Pacific region, while worldwide PX demand is expected to grow about six percent per year. Amoco's wholly owned 500,000 metric tons-per-year PTA plant in Malaysia went onstream in the second quarter of 1996. During the third quarter, a new 200,000 metric ton polypropylene unit at Amoco's Geel, Belgium plant began operations. Amoco also announced an expansion of purified isophthalic acid (PIA) capacity at its Joliet, Ill., facility from the current 93,000 tons per year to 200,000 tons per year. Operations are expected to begin in first quarter 1998. Sale of Amoco Foam Products Company ("Amoco Foam") to a unit of Tenneco Inc. was also completed. Huntsman Chemical Corporation has signed an agreement to purchase Amoco's polystyrene assets. Amoco will continue to evaluate and divest marginal properties and underperforming assets. Amoco also continues to seek attractive opportunities worldwide and is constantly reviewing strategic alternatives. Amoco and Shell Oil Company signed a letter of intent to form a limited partnership combining exploration and production assets in the greater Permian Basin area of west Texas and southeast New Mexico. Amoco will have a 65 percent interest in the joint venture, which is expected to produce approximately 210,000 gross barrels per day of crude oil and 250 million gross cubic feet per day of natural gas. Final agreement is contingent on the successful completion of ongoing discussions regarding design, management and operation of the company. Start up of the partnership is expected in the fourth quarter of 1996 or early 1997. Liquidity and Capital Resources Cash flows from operating activities for the first nine months of 1996 amounted to $2,834 million compared with $2,491 million in the prior-year period. Working capital was $874 million at September 30, 1996, compared with $716 million at December 31, 1995. The Corporation's current ratio was 1.16 to 1 at September 30, 1996, compared with 1.12 to 1 at year-end 1995. 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 $5.2 billion at September 30, 1996, compared with $5.0 billion as of year-end 1995. Debt as a percentage of debt-plus-equity was 24.4 percent at September 30, 1996, and 25.2 percent at year-end 1995. 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"). 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 September 30, 1996, 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 access to long-term debt markets to finance profitable growth opportunities. A $500 million shelf registration statement for Amoco Company remains on file with the Securities and Exchange Commission ("SEC") to permit ready access to capital markets. In 1995, Amoco Argentina filed a shelf registration with the SEC for $200 million in debt securities, of which $100 million in debt securities were subsequently issued. Amoco Corporation and Amoco Company guarantee the securities issued under this registration statement. Amoco Canada has a U.S. $225 million revolving 10-year credit facility, guaranteed by Amoco and Amoco Company, to be used for general corporate purposes. Amoco Canada is charged a standby fee for the facility, which has not been used. Proceeds from dispositions of property and other assets included $310 million received from the sale of Amoco Foam to a unit of Tenneco Inc. On March 1, 1996, Albemarle Corporation's ("Albemarle") alpha- olefins, poly alpha olefins and synthetic alcohol businesses were purchased for approximately $500 million. The purchase involved about 550 employees and assets in Texas and Belgium. Capital and exploration expenditures for the first nine months of 1996 totaled $3,079 million, excluding the Albemarle acquisition, compared with $2,747 million for the comparable 1995 period. The increase over the first nine months of 1995 reflected planned increases in spending in growth areas. Approximately 68 percent of the $3,079 million spent to date has occurred in exploration and production operations. 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. PART II--OTHER INFORMATION Item 1. Legal Proceedings Reference is made to the description of the challenge by the Internal Revenue Service ("IRS") of certain foreign income taxes as credits against the Corporation's U.S. taxes that would otherwise have been payable for the years 1980 through 1989 in Part I, Item 3 of Amoco's 1995 Form 10-K and Part II, Item 1 of Amoco's Forms 10-Q for the quarters ended March 31, 1996, and June 30, 1996. The IRS filed a Notice of Appeal of the decision in the U.S. Tax Court on October 9, 1996. The case will be sent to the United States Court of Appeals for the Seventh Circuit. 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 adverse effect on the liquidity, results of operations or the consolidated financial position of the Corporation. Thirteen 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 $7.6 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 with 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 Nine Months Ended Ended September 30, September 30, 1996 1995 1996 1995 (millions of dollars) Total revenues(including excise taxes)........... $8,272 $7,062 $23,702 $20,996 Operating profit........ $ 908 $ 926 $ 2,610 $ 2,415 Net income.............. $ 566 $ 606 $ 1,674 $ 1,554 Sept. 30, Dec. 31, 1996 1995 (millions of dollars) Current assets................. $ 5,453 $ 5,303 Total assets................... $27,715 $26,326 Current liabilities............ $ 4,184 $ 4,578 Long-term debt-affiliates...... $ 4,568 $ 4,608 -other........... $ 2,212 $ 2,177 Deferred credits............... $ 4,524 $ 4,397 Minority interest.............. $ 124 $ 110 Shareholder's equity........... $12,103 $10,456 Shown below is summarized financial information for Amoco's wholly owned subsidiary, Amoco Canada. Three Months Nine Months Ended Ended September 30, September 30, 1996 1995 1996 1995 (millions of dollars) Revenues................ $1,094 $ 838 $3,135 $2,639 Net income(loss)........ $ (18) $ (90) $ 129 $ (111) Sept. 30, Dec. 31, 1996 1995 (millions of dollars) Current assets.................. $ 1,226 $ 1,252 Total assets.................... $ 4,479 $ 4,493 Current liabilities............. $ 2,292 $ 2,494 Non-current liabilities......... $ 2,440 $ 2,381 Shareholder's deficit........... $ (253) $ (382) Shown below is summarized financial information for Amoco's indirectly wholly owned subsidiary, Amoco Argentina. Three Months Nine Months Ended Ended September 30, September 30, 1996 1995 1996 1995 (millions of dollars) Revenues................ $ 90 $ 67 $244 $189 Net income.............. $ 34 $ 20 $ 90 $ 64 Sept. 30, Dec. 31, 1996 1995 (millions of dollars) Current assets.................. $125 $ 73 Total assets.................... $527 $389 Current liabilities............. $ 78 $ 49 Non-current liabilities......... $198 $113 Shareholder's equity............ $251 $227 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 September 30, 1996. 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: November 12, 1996 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) Nine Months Ended Year Ended December 31, Sept. 30, 1996 1995 1994 1993 1992 1991 Determination of Income: Consolidated earnings before income taxes and minority interest.. $2,666 $2,404 $2,491 $2,506 $ 998 $2,035 Fixed charges expensed by consolidated companies. 301 406 316 350 376 479 Adjustments for certain companies accounted for by the equity method... 20 25 7 11 28 20 Adjusted earnings plus fixed charges.......... $2,987 $2,835 $2,814 $2,867 $1,402 $2,534 Determination of Fixed Charges: Consolidated interest on indebtedness (including interest capitalized).. $ 231 $ 317 $ 288 $ 299 $ 333 $ 433 Consolidated rental expense representative of an interest factor.. 80 89 23 50 44 54 Adjustments for certain companies accounted for by the equity method... 5 6 5 8 20 24 Total fixed charges...... $ 316 $ 412 $ 316 $ 357 $ 397 $ 511 Ratio of earnings to fixed charges............ 9.5 6.9 8.9 8.0 3.5 5.0 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 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 155 806 3360 17 1185 6329 50153 27125 30895 5455 4178 0 0 2631 13234 30895 23018 25997 16727 16727 4829 0 164 2666 703 1963 0 0 0 1963 3.95 0
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