Arco’s Profit Drops 18.2% in First Quarter

Atlantic Richfield posted a sharply lower first-quarter profit Monday and warned that second-quarter earnings “could deteriorate significantly” because of low oil prices.

The company blamed the 18.2% decline in its profit to plunging crude oil prices.

For the first quarter ended March 31, Arco’s net dropped to $288 million, compared to a year-earlier profit of $352 million. Revenue was down 25.6% to $4.29 billion from $5.77 billion.

Hardest hit was Arco’s worldwide oil and gas operations, which had after-tax operating earnings of $198 million, a decline of 42.3% from last year’s level of $343 million.

Arco Chairman and Chief Executive Lodwrick Cook warned that worse results may be in store if bargain-basement oil prices persist.

“First-quarter earnings reflect only part of the effects of the recent drop in crude prices,” Cook said. “Second-quarter earnings could deteriorate significantly if prices remain at current levels.”