Mobil Reports Flat Earnings in '91, With 1992 'Not Off to a Good Start
Mobil Corp. said yesterday that its profit was virtually flat in 1991, a year that began with spiraling oil prices and ended in a persistent recession,</br></br>Mobil Corp. said yesterday that its profit was virtually flat in 1991, a year that began with spiraling oil prices and ended in a persistent recession, ÛÏIt was a tough year for our industry, as a worldwide slowdown in economic growth dampened demand for energy and chemical products," Allen E. Murray, chairman of the Fairfax-based oil giant, said in a prepared statement. ÛÏUnfortunately, 1992 is not off to a good start. There has been no improvement in business conditions.Û</br></br>Like other major oil companies, Mobil was whipsawed last year by oil price gyrations caused by the Persian Gulf War. As the year began, it was enjoying the benefits of high crude oil prices caused by the tensions in the Middle East, but once the war began, prices sank, eliminating that advantage. The company then found itself coping with recession-related slowdowns in oil, gas and chemical product purchases.</br></br>Mobil earned $1.9 billion ($4.65 per share) in 1991, virtually the same as its profit in 1990, when a slightly higher number of shares outstanding .left per-share earnings at $4.60. Revenue fell 3 percent, to $62.7 billion from $64.5 billion in 1990. Nevertheless, Mobil remains by far the largest corporation based in the Washington area.</br></br>In the fourth quarter, Mobil earned $401 million (97 cents), a 39 percent drop from $652 million ($1.58) in 1990 that reflects the change in oil prices and economic conditions. Revenue in the quarter dropped 14 percent, to $16.6 million from $19.4 million in 1990.