Decade-Long Slump May Finally Be Over For Mobil

Mobil Corp. boosted its quarterly dividend 6 percent to $1.06 a share and said it plans to split its stock 2-for-1.

The move is a sign that oil companies have rebounded from the decade-long slump that began after oil prices collapsed in 1986, analysts said.

“My guess is, now that Mobil’s split their stock, there will be pressure on other oil companies to take the same step,” said Adam Sieminski, an analyst with NatWest Securities Corp.

The two moves reflect record operating earnings in 1996, a strong balance sheet and confidence in the future, said Lucio Noto, chairman and chief executive. Mobil’s last stock split was in 1981.

Sieminski said shares of Atlantic Richfield Co., British Petroleum Co., Royal Dutch Petroleum Co., Exxon Corp. and Texaco Inc. are trading above $100, and therefore are candidates for a split.

Mobil shares touched an all-time high Friday of $133.32, before closing down 50 cents at $131.25. Crude oil futures prices on the New York Mercantile Exchange fell 72 cents, pulling oil company stocks down with them.

Fairfax, Va.-based Mobil last raised its dividend in June by 8.1 percent. The latest increase is payable March 10 to shareholders of record Feb. 10.

The proposed split must be approved by shareholders at their annual meeting May 8.

Shareholders also must approve an increase in the authorized amount of common stock to 1.2 billion shares of $1 par value from 600 million shares of $2 par value. At year-end, Mobil had about 394 million shares outstanding.

Mobil said Monday that fourthquarter profit from operations rose a more-than-expected 16 percent to $879 million, or $2.20 a share. Fullyear earnings from operations rose to $3.1 billion, or $7.72 a share, as Mobil benefited from higher oil and natural gas prices, rising production and lower costs.

Mobil is the second-largest U.S. oil company behind Exxon Corp.

Some of the stocks that traded heavily or moved substantially Friday:

NYSE

Mercury Finance, down $12.87-1/2 at $2.

After revealing earlier in the week that its books had been falsified, Mercury defaulted on $17 million in debt payments due Friday. Mercury, previously considered a gem in the high-risk auto loan business, was negotiating to reschedule nearly $83 million more in loans.

Dow Jones & Co., up $1.12-1/2 at $39.62-1/2 and Reuters Holdings (Nasdaq), down 87-1/2 cents at $63.82-1/2.

Business Week, citing money managers and an investment banker it did not name, reported that Reuters had sent feelers to some of the controlling Dow Jones shareholders about a possible merger, joint venture or outright sale. Both companies would not comment on the report.

Borders Group, up $4.62-1/2 at $44.62-1/2.

The book retailer said late Thursday it expects to report earnings that will exceed Wall Street expectations. Also Borders named a new president and announced a 2-for-1 stock split.

Kellogg, up $1.62-1/2 at $69.62-1/2.

The Battle Creek, Mich.-based cereal company earned $87.3 million on lower sales in the final three months of 1996 in contrast to a loss a year ago. The earnings exceeded analyst expectations.

NASDAQ

AST Research, up 31-1/4 cents at $5.06-1/4.

Korea’s Samsung Electronics, which repeatedly has bailed out the troubled computer maker, offered $469 million for the 51 percent of AST it doesn’t already own.

Harry’s Farmers Market class A, up $2.43-3/4 at $6.31-1/4 and Boston Chicken, down $1 at $34.62-1/2.

Atlanta-based Harry’s Farmers Market received $23 million in new capital from Boston Chicken affiliate Progressive Food Concepts.