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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: paul feldman who wrote (58789)	1/20/2000 1:07:00 PM
From: Brian P.	Respond to of 95453

January 20, 2000 Arco Profits Soar Alongside Oil Price Rally REUTERS INDEX \| INTERNATIONAL \| BUSINESS \| TECHNOLOGY Filed at 12:23 p.m. ET By Reuters LOS ANGELES (Reuters) - Atlantic Richfield Co. (ARC.N), the No. 4 U.S. oil company, said Thursday its fourth quarter earnings climbed more than sevenfold, beating analysts' expectations, thanks to a big rally in crude oil prices. The Los Angeles-based integrated oil company said earnings excluding special items rose to $541 million, or $1.64 per diluted share, from $70 million, or 22 cents a per share, in the fourth quarter a year ago. Including special items, net income for the fourth quarter 1999 totaled $572 million, or $1.74 a diluted share. Total revenues rose to $3.74 billion in the fourth quarter from $2.71 billion in the final quarter of 1998. Although earnings surpassed expectations, analysts said the strength in oil and gas exploration and production was in line with the quarter's dramatic worldwide oil price surge. Analysts on average had forecasted earnings of $1.49 a share, according to First Call/Thomson Financial estimates. Better-than expected results come as the company's stock price has plunged on concerns that anti-trust regulators will block its planned $27 billion takeover by British oil giant BP Amoco Plc.(BPA.N)(BPA.L), a deal which would create the world's largest non-state-owned oil producer. So far this year, shares of the company have dropped steadily on jitters over the merger, down about 13 percent on the New York Stock Exchange. Arco shares rose 5/16 in mid-morning trade on Thursday to 75-3/8. ``At the moment I think the dominant event is still whether or not BP can close on the merger. If not, I think the stock will be stuck in a trading range,' said Michael Young, analyst with Deutsche Banc Alex. Brown. Lawyers for BP Amoco and Arco met last week with Federal Trade Commission staff after the firms set a 20-day deadline on the FTC decision on whether to approve or block the merger. Arco did not elaborate in a statement, but Chief Executive Mike Bowlin said this week the companies were prepared to ``go the distance,' if the merger goes to court. BP Amoco and Arco had aimed to complete the deal by the end of December. The December quarter revenue gain of 38 percent came at the same time crude oil prices rose to an average of nearly $24.50 a barrel, nearly twice year-ago levels, in large measure due to an agreement by top crude exporting countries to limit output. ``From an industry standpoint, the rise in crude prices was the big event of 1999,' Bowlin said in a statement. ``This roller coaster year further demonstrates the need for companies in a commodity business to be a low-cost operator.' Arco's cost cutting program, completed in 1999, added more than $400 million to 1999 earnings, he said. The company cut a total of $740 million in expenditures compared to 1998 baseline expenses. Refining and marketing remained strong, earnings $76 million in the quarter, compared to $57 million the previous year. In the full year, the company's earnings excluding special items rose 165 percent to $1.53 billion from $575 million last year.