3 Oil Companies Hurt by Weaker Demand

Three oil companies reported lower second-quarter earnings, blaming recession-related weakness in demand for cutting prices for gasoline and other products.

Exxon Corp. said its profits were down 15.1%. The decline was accelerated by a one-time charge to restructure domestic oil and gas operations as part of a cost-cutting program.

Texaco Inc. said earnings dropped 8.9% and its chairman promised to continue cutting expenses to cope with generally weak industry conditions.

Occidental Petroleum Corp. reported a 49% earnings drop largely due to depressed results from its chemicals business.

Irving, Tex.-based Exxon reported earning $955 million, or 76 cents a share, compared to $1.13 billion, or 90 cents a share, in the second quarter of 1991. The restructuring charge was $75 million.

Revenues were $27.8 billion for the quarter, up 2% from $27.3 billion the year earlier.

Texaco, based in White Plains, N.Y., said it earned $245 million, or 85 cents a share in the quarter, compared to $269 million, or 94 cents a share, for the second quarter of 1991. Revenues totaled $9.4 billion, up from $9.0 billion.

“Continued economic weakness in the United States, Europe and a number of other areas was reflected in similarly weak demand for crude oil and petroleum products throughout the quarter,” said James W. Kinnear, president and chief executive.

Los Angeles-based Occidental said it earned $75 million, or 25 cents a share, down from $147 million, or 49 cents a share, during the same period in 1991.

Sales fell to $2.18 billion from $2.39 billion.

The company had lower interest expense and operating costs, the results of its recent restructuring.

Oil and gas earnings were $82 million, up from $54 million in 1991. Natural gas pipeline earnings were $125 million, compared to $49 million. Chemical earnings were $37 million, compared with $127 million.