EXXON <XON> GAINS DUE TO STREAMLINED OPERATIONS
Exxon Corp said that 1986's 15 pct
increase in earnings per share to 7.42 dlrs a share were
partially based on its streamlined operations which compensated
for the weakness in its exploration earnings and the lowest
crude oil prices in a decade.
    Exxon said economies introduced in its operations from
reductions in personnel and other savings, such as reductions
in exploration expenses, were reflected in an 880 mln dlr
reduction in consolidated operating costs from 1985.
    The company said its more efficient operations would be
necessary to offset more adverse oil market conditions ahead.
    The company also said that its share repurchase plan
contributed to the per share gains over 1985.
    In a breakdown of costs, Exxon said that operating expenses
slipped to 9.2 billion dlrs in 1986 from 9.7 billion dlrs the
previous year and exploration expenses, including dry holes,
slipped back to 1.2 billion dlrs from 1.5 billion dlrs over the
same period as the number of wells drilled was lower.
    The company was also able to use lower interest rates to
reduce its interest expenses to 614 mln dlrs in 1986 from 627
mln dlrs the previous year.
    Exxon said that the ratio of debt to capital was cut by 1.6
pct in 1986 from the previous year to 19 pct.
    On December 31, 1986 Exxon's total debt of 7.87 billion
dlrs was down slightly from the previous year's 7.9 billion
dlrs and long term debt stood at 4.3 billion dlrs, down from
4.8 billion dlrs in 1985.
    Exxon's policy of repurchasing shares on the market for its
treasury also contributed to earnings results by a reduction of
shares to 722.6 mln shares from 754.1 mln shares the previous
year.
 Reuter
