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ARCO REPORTS EARNINGS FOR FOURTH QUARTER, FULL YEAR 1992

 LOS ANGELES, Jan. 25 /PRNewswire/ -- ARCO (NYSE: ARC) today reported 1992 net income of $801 million, or $4.96 per share. This compares to 1991 net income of $709 million, or $4.39. provisions for future environmental costs.
 ARCO's 1992 earnings would have been $1.053 billion, or $6.52 per share, up 5 percent from $1.004 billion, or $6.21 per share, for 1991, excluding accounting changes in 1992 and certain items in both years.
 The 1992 results included a net charge of $392 million after tax, or $2.43 per share, for the cumulative effect of adopting two new accounting standards related to postretirement benefits and income taxes, retroactive to Jan. 1, 1992. The 1992 results also included a net after-tax benefit of $140 million. This net benefit related primarily to a gain from a settlement on assets nationalized by Iran and recognition of a previously deferred portion of the gain from the 1989 sale of a majority interest in Lyondell Petrochemical Co. (NYSE: LYO) common stock, partially offset by charges related to ARCO Chemical Co.'s (NYSE: RCM) withdrawal from a South Korean joint venture and charges for future environmental costs.
 The 1991 results included net after-tax charges of approximately $295 million related primarily to personnel reductions and property sales and writedowns.
 For the 1992 fourth quarter, ARCO's net income was $372 million, or $2.30 per share, compared to $268 million, or $1.67 per share, in the fourth quarter of 1991. The 1992 fourth quarter included a net benefit of approximately $75 million after tax related primarily to a gain from the Iranian settlement, partially offset by charges for environmental-related obligations.
 Lodwrick M. Cook, ARCO chairman and chief executive officer, said: "We are particularly pleased that our integrated West Coast operations showed a strong improvement. This improvement was achieved in spite of continued weakness in the U.S. economy. We also realized the benefits from cost reductions and still made substantial progress with development projects for the future."
 ARCO's worldwide oil and gas exploration and production operations earned $816 million after tax in 1992, up from $549 million after tax for 1991. The 1992 results included a net benefit of $138 million after tax consisting of gains from the Iranian settlement, and Lower 48 property sales partially offset by charges associated with the downsizing of Lower 48 operations. The 1991 results included approximately $170 million in net after-tax charges related to personnel reductions and the anticipated losses on disposal of properties in the Lower 48, partially offset by a benefit associated with the reduction in United Kingdom corporation tax rates.
 The company's average price for domestic crude oil in 1992 was $12.92 per barrel, compared with $12.93 per barrel in 1991. The average domestic natural gas price was $1.65 per thousand cubic feet in 1992, compared with $1.54 per thousand cubic feet in 1991.
 Worldwide production of crude oil and natural gas liquids averaged 738,200 barrels per day in 1992, down slightly from 744,200 barrels per day in 1991. Production benefited from increased international volumes, although this was offset by natural field declines and Lower 48 property divestitures.
 Worldwide natural gas production averaged 1,442 million cubic feet per day, down from 1,660 million cubic feet per day in 1991. The reduced production levels reflected primarily natural field declines and property divestitures in the Lower 48.
 Worldwide pre-tax exploration expenses totaled $586 million in 1992, down from $593 million in 1991. The decrease was due primarily to reduced capital spending in the Lower 48.
 ARCO'S coal operations earned $83 million after tax, up from $33 million in 1991 when results included an estimated $50 million in net after-tax charges primarily associated with the writedown of an Australian mine.
 Refining and marketing earnings totaled $346 million after tax for 1992, up from $266 million in 1991. This improvement resulted from higher margins in the company's five-state West Coast marketing area. The 1992 results also included a charge of approximately $40 million after tax primarily for environmental costs related to previously divested operations.
 After-tax transportation earnings totaled $239 million in 1992 vs. $212 million in 1991 when after-tax charges of about $30 million for personnel reduction costs and the settlement of the Kuparuk Pipeline tariff rate litigation were taken. In 1992, improved results from Lower 48 terminal and pipeline operations offset a decline in earnings from the Trans Alaska Pipeline System.
 The intermediate chemicals and specialty products segment, which reflects ARCO's 83.4 percent interest in ARCO Chemical Co., earned after-tax income of $210 million in 1992, compared with $192 million in 1991. Sales volumes for all major products groups including propylene oxide derivatives and methyl tertiary butyl ether (MTBE) were higher. The 1992 results included $56 million before tax for ARCO's share of charges resulting from ARCO Chemical's withdrawal from the YUKONG ARCO Chemical Ltd. joint venture in South Korea. ARCO Chemical's reported 1991 results included a net pre-tax benefit of approximately $133 million largely related to business interruption insurance claims, partially offset by pre-tax charges for personnel reductions.
 Earnings from ARCO's 49.9 percent equity interest in Lyondell Petrochemical Co. were $8 million for 1992, compared with $111 million in 1991. Lyondell's 1992 results were impacted by lower olefins margins and volumes, reduced refining margins in the Gulf Coast and costs associated with a refinery turnaround in the first quarter of 1992.
 Total sales and operating revenues for 1992 were $18.7 billion, compared to $18.2 billion in 1991.
 Return on ARCO's stockholders' equity for 1992 was 11.8 percent.
 ATLANTIC RICHFIELD CO.
 Financial and Statistical Data
 (Millions of Dollars Except Per Share Amounts)
 Three Months Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Sales & other operating
 revenues (including
 excise taxes) $5,014 $4,836 $18,668 $18,191
 Income before income
 taxes, minority
 interest, and
 cumulative effect
 of change in
 accounting principles $433 $479 $1,907 $1,160
 Provision for taxes
 on income (52) (200) (678) (420)
 Minority interest in
 earnings of subsidiary (9) (11) (36) (31)
 Income before cumulative
 effect of change in
 accounting principles 372 268 1,193 709
 Cumulative effect of
 change in accounting
 principles (A) --- --- (392) ---
 Net income $372 $268 $801 $709
 Earned per share $2.30 $1.67 $4.96 (A) $4.39
 After-tax segment
 earnings
 Resources:
 Oil and gas $333 $197 $816 $549
 Coal 22 23 83 33
 Products:
 Refining and marketing 42 48 346 266
 Transportation 58 65 239 212
 Intermediate chemicals
 & specialty products
 (ARCO Chemical Co.) 59 67 210 192
 Equity in earnings
 from Lyondell
 Petrochemical Co. 3 11 8 111
 Unallocated expenses
 and other (7) (6) 25 (60)
 Interest (138) (137) (534) (594)
 Cumulative effect of
 change in accounting
 principles --- --- (392) ---
 Net income $372 $268 $801 $709
 Average common shares
 outstanding including
 equivalents (millions
 of shares) 162.1 161.0 161.5 161.7
 Return on stockholders' equity
 12-month period ended Dec. 31, 1992 - 11.8 percent
 12-month period ended Dec. 31, 1991 - 10.1 percent
 (A) The adoption of SFAS 106 and SFAS 109 reduced earnings per share by $2.43 per share.
 -0- 1/25/93
 /CONTACT: Albert Greenstein of ARCO, 213-486-3384/
 (ARC LYO RCM)


CO: ARCO ST: California IN: OIL SU: ERN

JL-KJ -- LA001 -- 8569 01/25/93 14:04 EST
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