Oil Fat Cats get Fatter...

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This article posted on Yahoo just a few minutes ago. ---------------------------------------------------------------------- Fair Use: Education and Discussion Only!

>>>Related Quotes ARC BPA 76 3/8 54 3/16 +1 5/16 -1 13/16 delayed 20 mins - disclaimer Thursday January 20, 1:07 pm Eastern Time Arco profits soar alongside oil price rally LOS ANGELES, Jan 20 (Reuters) - Atlantic Richfield Co. (NYSE:ARC - news), the No. 4 U.S. oil company, said Thursday its fourth quarter earnings climbed more than sevenfold, beating analysts' expectations thanks to the 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.

Analysts on average forecasted earnings of $1.49 a share, according to First Call/Thomson Financial estimates.

The 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 BP Amoco Plc. (NYSE:BPA - news) (quote from Yahoo! UK & Ireland: 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 about 13 percent to 75-1/16 on the New York Stock Exchange.

Lawyers for BP Amoco and Arco met late last week with the staff of the Federal Trade Commission to discuss their move to trigger a 20-day window in which regulators must either accept the deal or go to court to block it.

Fourth quarter revenue rose 38 percent percent to $3.74 billion from $2.71 billion in the year-earlier quarter. At the same time, the industry saw crude oil prices rise to an average of almost $24.50 a barrel, nearly twice year ago levels, in large measure due to an agreement by top exporting countries to limit crude production.

The company was also helped by a cost cutting program which it said added more than $400 million to 1999 earnings.

In the full year, the company's earnings excluding special items rose 165 percent to $1.53 billion from $575 million last year. <<<

-- Irving (irvingf@myremarq.com), January 20, 2000

Answers

It is exactly what you would expect. If oil prices rise, the value of oil companies that have large oil holdings will also rise. On the other hand, transportation stocks (airlines, trucking, and shipping companies) will be down, due to higher fuel costs.

-- Mad Monk (madmonk@hawaiian.net), January 20, 2000.

BTW Didn't notice it above but ARC is RAPIDLY hunting a spouse......

C

-- Chuck, a night driver (rienzoo@en.com), January 20, 2000.


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