Phillips Petroleum Profit Falls 31.6% in 4th Quarter

Phillips Petroleum Co. said profits fell 31.6% in the fourth quarter of 1984, in part reflecting the $32-million expense associated with its fight against an unwelcome takeover bid. For all of 1984, earnings rose 12.3%.

Phillips, headquartered in Bartlesville, Okla., said earnings in the final three months of last year fell to $169 million from $247 million a year earlier. Revenue slipped 2% to $4.01 billion from $4.09 billion.

It was in that period that a partnership led by T. Boone Pick ens, chairman of Mesa Petroleum Co., launched a hostile bid to gain control of Phillips. Phillips waged an extensive legal defense and eventually reached a settlement in which Pickens’ group dropped its bid.

Not included in the $32-million charge were the expenses of Pickens’ group, which Phillips agreed to meet but has yet to report.

That settlement also required Phillips to ask its shareholders to approve a massive restructuring of the company at a special meeting set for Feb. 22. The restructuring would have the company buy back 38% of its stock, sell additional stock to its employees and sell about $2 billion of its assets.

For all of 1984, earnings rose to $810 million from $721 million a year earlier. Revenue rose 2.3% to $15.76 billion from $15.41 billion.

William Douce, Phillips’ chairman, said production of crude oil, natural gas and natural gas liquids rose late in the year, helping earnings, as a result of the company’s $1.7-billion purchase of Aminoil, the oil and gas subsidiary of R. J. Reynolds Industries Inc. Chemical operations also improved.