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API Study: Oil Company Profitability Third Lowest In 23 Years The 1991 profitability of a cross- section ofleadingU.S. oil companies was at its third lowest level in the past 23 years, a study released by the American Petroleum Institute reveals. According to the study, which is entitled "Financial Trends of Lead- ing U.S. Oil Companies 1968-1991," the rate of return (income as a per- centage of stockholder equity) of the leading 20 companies was 9.7 per- cent. The only times the rates were lower since 1968 were in 1986 and 1987, when rates were 3.7 percent and 6.2 percent, respectively. The only other time the rate was lower than 10 percent during the period was in 1972, when it was 9.9 percent. Net income of the 20 companies in 1991 was $13.2 billion. This was the lowest level since 1987, when net income amounted to $7.9 billion. Conversely, the highest net income achieved by the 20 companies dur- ing the stated period was 25.8 bil- lion, which was recorded by the survey in 1980. In 1991, the capital expenditures of the 20 companies amounted to $36.8 billion, $23.6 billion more than their net income. In addition to the data reported above, the 36-page study contains a variety of other financial informa- tion pertaining to the industry. The companies covered by the study included Amerada Hess Cor- poration; Amoco Corporation; Ashland Oil, Incorporated; ARCO; Chevron Corporation; Diamond Shamrock, Incorporated; Exxon Cor- poration; FlNA, Incorporated; Kerr- McGee Corporation; Maxus Energy; Mobil Corporation; Murphy Oil Cor- poration; Occidental Petroleum Cor- poration; Oryx Energy; Pennzoil Company; Phillips Petroleum Com- pany; Shell Company, Incorporated; Sun Company, Incorporated; Texaco Incorporated; and Unocal Corpora- tion. Copies of Financial Trends of Leading U.S. Oil Companies 1968- 1991 (Discussion Paper #017R) are available for $30 each from the American Petroleum Institute. Con- tact API at: Publications and Distri- bution Section, 1220 L Street N.W., Washington, D.C. 20005; tel: (202) 682-8378; fax: (202) 682-8537. Daewoo Announces New Contracts For Containership, VLCC Daewoo Shipbuilding & Heavy Machinery Ltd. has kicked-offl993 with a number of new orders. The first order of the year for a Korean shipbuilding firms was worth $150 million, and was a con- tract by the Indian state-run Oil and Natural Gas Commission (ONGC) for construction of an SHW Process Platform Complex 100 kilo- meters northwest of Bombay. The project is related to the $400- million SHG Process Platform Com- plex contract the company received from ONGC early last year, and is to be completed by December 1994. Daewoo has also concluded a $450-million contract with Iran for construction of five new VLCC's. A formal announcement has yet to be made and details are forthcom- ing. Finally, Daewoo Shipbuilding announced it will build two 4,000- teu containerships worth $170 mil- lion for American President Line. An order for six additional containerships could be received on an optional basis from APL in the future. In 1993, Daewoo is scheduled to complete nine VLCC's, bringing the total VLCC tonnage and vessels built to 8.13 million dwt and 28 respec- tively, since 1988. American Eagle Enters Platform/Wellhead Abandonment Business American Eagle Marine, Inc., lo- cated on the Harvey Canal in New Orleans, can now offer immediate delivery of the derrick barge Gre- gory "L," a full 100-ton lift capacity, 360 degree rotating pedestal mounted crane mounted on a 180- foot by 60-foot by 11-foot barge, and has entered the wellhead cleanup and platform removal market. "The D/B Gregory L is ideal for this type of work with its 120-foot boom and crane elevated 30 feet off of the deck. The barge itself offers an unusu- ally large working space, crew quar- ters, six-point mooring system and only draws 3.5-feet," said Doug Adams, operations manager. The company presently employs a staff of 28 to operate the entirety of American Eagle's equipment inven- tory and provide support to its ac- tivities. The offshore state and inland waterways will be American Eagle's primary target for operating, and based on their recent activity, be- lieve this is the area they can be most competitive. In addition to its active salvage business, American Eagle is a prime vendor to the U.S. Army Corps of Engineers, has recently worked for Total-Minatome, AWI-Mallard and has bids in place for the removal of eight platforms and numerous well- heads later this spring and summer. 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The film has a pyramid construction, which when used on floors with the pyramids facing down creates a temporary non-slip surface, which depending on the grade chosen will protect against all types of workman and refurbishment programs. When used vertically as a wall protector, the pyramids are placed facing out to act as an extremely effective vertical protection system, if a flame retardant specification is specified. Export enquires are welcomed. For more information please contact: See us at: Seatrade Cruise Shipping 93 March 16-20 at Booth 645/647 BAINBRIDGE /AQUABATTEN 252 Revere St., Canton, MA 02021 USA • 617-821-2600 (tel) • 617-821-2609 (fax) 70 Circle 276 on Reader Service Card (D 0 3|
