Analyst forecasts profits gusher for oil firms after 1991 doldrums.Analyst forecasts profits gusher for oil firms after 1991 doldrums doldrums (dŏl`drəmz) or equatorial belt of calms, area around the earth centered slightly north of the equator between the two belts of trade winds. Atlantic Richfield Co. is expected to earn more in 1995 than any other oil company based in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a recent report published by Sanford C. Bernstein & Co. Inc., a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of investment management and brokerage firm. The oil giant, the second largest publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. in Los Angeles County, is expected to earn $2.2 billion in 1995. Arco is one of the largest Alaskan oil producers, and Alaska accounts for about 25 percent of the nation's total oil and gas production, said Alvin Silber, an analyst with New York-based Brean Murray Foster Early Life Murray was born on June 29th 1967 in Thornhill, Ontario. The first concert he went to was a Peter Francis concert at age 12 with Jian Ghomeshi in 1978. He attended Thornlea secondary school, where he formed Moxy Früvous. Securities Inc., a brokerage firm. Its big earnings are "only a function of their size," he said. Arco earned $2 billion on revenues of $20 billion in 1990. Meanwhile, Occidental Petroleum Occidental Petroleum Corporation ("Oxy") NYSE: OXY is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Corp.'s earnings are expected to grow the most. Westwood-based Oxy, the largest public company in Los Angeles County, lost $1.7 billion on revenues of $22 billion during fiscal 1990. But the company's earnings are projected to rebound to $720 million by 1995, the report states. However, Oxy's 1990 loss can be attributed to a $3 billion corporate restructuring it announced in January 1991 but tacked onto its fourth quarter 1990 earnings. It earned $285 million in 1989. Jim Murchie, president Sanford C. Bernstein & Co., said the high earnings projections for Oxy can be attributed to the profits expected to follow from the restructuring. Its growth is projected at about 35 percent per year, compared to a projected 10 percent to 15 percent growth rate for other oil companies, Murchie said. Downtown Los Angeles-based Unocal Corp., meanwhile, is expected to increase its earnings 84 percent by 1995, to $740 million from $402 million in 1990. Unocal differs from Occidental and Arco in that the company does most of its oil and gas production in the lower 48 states, especially in California, Silber said. Unocal also differs in that most of its earnings are derived from the upstream operations of exploration and production, rather than downstream operations, refining and marketing, Silber said. Arco and Unocal are expected to report a decrease in earnings for fiscal 1991, while Oxy is also expected to report a fall in earnings when compared with fiscal 1989. This poor earnings projection is attributable to the havoc caused by the Persian Gulf War Persian Gulf War or Gulf War (1990–91) International conflict triggered by Iraq's invasion of Kuwait in August 1990. Though justified by Iraqi leader Saddam Hussein on grounds that Kuwait was historically part of Iraq, the invasion was presumed to be , Murchie said. From 1992 on, earnings for all three are expected to grow, the report states. Arco is also expected to be the earnings leader during the current quarter, while Oxy is expected to lose money, the report stated. Arco is forecast to earn $350 million in the quarter, while Oxy is seen $7 million in the red and Unocal is predicted to earn $80 million. With a constant price-earnings ratio Price-earnings ratio Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). , Arco's stock price is expected to rise from a current $121.25 a share to $204 a share in 1995. Unocal's stock price, meanwhile, is expected to increase from a current $25.275 a share to $59 a share four years from now, while Oxy's stock is expected to jump from $19.875 a share now to $73 a share in 1995. |
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