FREEPORT-McMoRan RESOURCE PARTNERS REPORTS FOURTH-QUARTER AND YEAR-END 1994 RESULTS.NEW ORLEANS--(BUSINESS WIRE)--Jan. 24, 1995--Freeport-McMoRan Resource Partners, Limited Partnership (NYSE NYSE See: New York Stock Exchange : FRP FRP Fremskrittspartiet (Norwegian: Progress Party; political party) FRP Fiberglass-Reinforced Plastic FRP Fiber Reinforced Polymer FRP Fibre Reinforced Polymer FRP Fleet Response Plan (US Navy) ), an affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. of Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc., (NYSE: FCX) often called simply Freeport, is the world's lowest-cost copper producer and one of the world's largest producers of gold. Inc. (NYSE: FTX (Fault Tolerant UNIX) Stratus Computer's version of Unix System V for its XA/R fault tolerant computer systems. See also FTTx. (operating system) FTX - Stratus' Unix operating system. ), reported fourth-quarter 1994 net income of $26,756,000, $0.26 per unit, after a charge, compared with a net loss of $63,827,000, $0.62 per unit, after charges, a year ago. For the twelve months ended December December: see month. 31, 1994, FRP reported net income of $83,966,000, $0.81 per unit, after charges, compared with a net loss of $246,111,000, $2.37 per unit, after charges, a year ago. Net income per unit before charges for the fourth-quarter and twelve-month period ended December 31, 1994 would have been $0.30 and $0.89, respectively. The following factors contributed to the difference between the quarterly periods: -- Improved Phosphate phosphate, salt or ester of phosphoric acid, H3PO4. Because phosphoric acid is tribasic (having three replaceable hydrogen atoms), it forms monophosphate, diphosphate, and triphosphate salts in which one, two, or three of the hydrogens of the Fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. Prices, Higher Margins. DAP prices are at their highest levels since early 1988 reflecting record purchases by China, reduced export availability of DAP from Morocco Morocco, country, Africa Morocco (mərŏk`ō), officially Kingdom of Morocco, kingdom (2005 est. pop. 32,726,000), 171,834 sq mi (445,050 sq km), NW Africa. and Jordan Jordan, country, Asia Jordan, officially Hashemite Kingdom of Jordan, kingdom (2005 est. pop. 5,760,000), 35,637 sq mi (92,300 sq km), SW Asia. It borders on Israel and the West Bank in the west, on Syria in the north, on Iraq in the northeast, and on Saudi , and a significant decrease in Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. exports. Large forward export sales to China and Iran in late 1994 have reduced the availability of product for domestic customers resulting in IMC-Agrico re-starting its Taft plant. FRP's cash margins continue to benefit from high DAP prices as well as the cost benefits derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the IMC-Agrico joint venture. -- Higher Sulphur Sulphur, city, United States Sulphur, city (1990 pop. 20,125), Calcasieu parish, SW La.; inc. 1914. It is a trade center for an area producing natural gas, oil, and timber as well as sorghum, soybeans, cattle, and crawfish. Production, Lower Cost. Main Pass sulphur production volumes averaged 6,400 TPD TPD Tons Per Day TPD Therapeutic Products Directorate TPD Total and Permanent Disablement (insurance) TPD Temperature Programmed Desorption TPD Temporary Partial Disability (insurance) for the fourth quarter compared to 4,400 TPD in the fourth quarter of 1993 and unit cash production costs were lower than in the prior quarter because of ongoing cost cutting efforts. For 1994, sulphur production averaged nearly 6,200 TPD, well above the original full design rate. Production is expected to approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. the 6,000 TPD level for the immediate future. Sulphur prices have benefitted from the improving phosphate fertilizer market which caused world sulphur consumption to increase in 1994, the first upturn in five years. The industry's domestic sulphur sales increased nearly 800,000 metric tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. during 1994 largely the result of record U.S. DAP exports to China. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , sulphur prices were near $70 per long ton in central Florida
Central Florida is the central region of the United States state of Florida, on the East Coast. after beginning 1994 at under $50 per long ton. -- Oil Production. The Main Pass oil redevelopment program was completed this quarter with 2 new wells drilled and 3 wells recompleted increasing production by 5,900 barrels of oil per day. FRP estimates that its share of Main Pass oil production will approximate 2.2 million barrels in 1995. OTHER ACTIVITIES FRP completed the acquisition of essentially all of the domestic assets of Pennzoil's sulphur division effective January January: see month. 1, 1995. Pennzoil Pennzoil is an oil company originally founded in Oil City, Pennsylvania. In 1963, South Penn Oil merged with Zapata Petroleum to become Pennzoil. During the 1970s, the company moved its offices to Houston, Texas. will receive quarterly payments from FRP over 20 years based on the prevailing price of sulphur. The payments may be terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: earlier by FRP, through the exercise of a call option for $65 million, or by Pennzoil, through a $10 million put option. Neither option may be exercised prior to 1999. FRP expects to complete the Fertiberia purchase during the first half of 1995. In December, Fertiberia received $38.5 million in nonrecourse Nonrecourse In the case of default, the lender has no ability to claim assets over and above what the limited partners contributed. financing with payment terms depending upon Fertiberia's financial performance. The possibilities for growth through Spain's agricultural minerals sector and the potential avenues for cooperation with our affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , IMC-Agrico Company and Rio Tinto Rio Tinto may refer to:
emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and Mediterranean Mediterranean named after the Mediterranean Sea or region. Mediterranean coast fever see theileriaannulata infection in cattle. Mediterranean fever see malta fever. agricultural minerals arenas positions it well to benefit from the inevitable recovery coming in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and the former Soviet Union. FRP will continue its strategy to pursue other attractive growth opportunities. DISTRIBUTABLE CASH Distributable cash for the fourth quarter was sufficient to provide for a distribution of $0.60 per public unit, or $30.2 million, and $0.26 per general partnership unit owned by FTX, or $13.9 million. FTX will not receive $18.0 million of the $31.9 million owed it from this quarter's distribution, bringing the total unpaid cash distributions due FTX to $353.1 million. FTX will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive these unpaid cash distributions in the future from a portion of the quarterly distributable cash after payments of $0.60 per unit to all unitholders. Fourth quarter FRP distributable cash included $52.2 million attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to IMC-Agrico joint venture operating activities. S&P placed FRP under "credit watch" as a result of Freeport-McMoRan Inc.'s (NYSE:FTX) restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, whereby FTX would distribute to its shareholders FTX's holdings of common shares of Freeport-McMoRan Copper & Gold after certain transactions. After meeting with S&P and further discussing the benefits to FRP of the FTX restructuring, S&P removed FRP from "credit watch", affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the ratings with a positive outlook, and noted a possible future upgrade. FRP is engaged in the production of phosphate fertilizers and the mining of phosphate rock phosphate rock n. Any of various rocks composed largely of phosphate minerals, especially apatite, used as fertilizer and as a source of phosphorous compounds. through IMC-Agrico Company; the mining, transportation and terminalling of sulphur, and the development and production of related oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally . -0-
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Twelve Months
--------------------- ----------------------
1994 1993 1994 1993
--------- -------- --------- ---------
(In Thousands, Except Per Unit Amounts)
FINANCIAL
Revenues $209,282 $168,108 $765,278 $669,160
Operating income
(loss) 36,333a (57,425)b 120,618a (210,848)b
Net income (loss) 26,756a (63,827)b 83,966a (246,111)b,c
Net income (loss)
per unit .26a (.62)b .81a (2.37)b,c
Average units
outstanding 103,639 103,698 103,683 103,698
Earnings by sources:
Agricultural
minerals $38,954a $ 5,147d $123,782a $(105,020)d
Oil 585 (61,564)e 2,790 (61,545)e
OPERATING
Phosphate fertilizers (short tons)f
Diammonium phosphate
Sales:
Florida 328,200 228,300 1,081,300
Louisiana 236,700 218,400 970,100
Other 50,600 86,900 216,500
-------- -------- ---------
Total sales 615,500 533,600 2,267,900 2,303,200
Average realized price:g
Florida $153.96 $113.64 $146.53
Louisiana 159.80 125.98 152.48
Monoammonium phosphate
Sales:
Granular 56,300 53,800 298,300 423,300
Powdered 43,900 33,100 162,000 55,400
Average realized price:g
Granular $164.31 $139.36 $158.54
Powdered 137.36 107.65 129.24
Granular triple superphosphate
Sales 108,800 134,400 465,200 564,700
Average realized
price g $120.38 $93.13 $114.76
Phosphate rock (short tons)f
Sales 1,300,300 1,131,400 4,373,400 3,840,300
Average realized
price g $20.87 $19.85 $21.38
Sulphur (long tons)
Sales h 501,300 526,700 2,087,800 1,973,200
Oil and condensate (barrels)
Sales 680,700 1,017,700 2,533,700 3,443,000
Average realized
price $14.82 $12.73 $13.74 $14.43
(a). Includes a charge of $3.7 million ($0.04 per unit) and
$8.0 million ($0.08 per unit) for the fourth-quarter and twelve-month
period, respectively, for remediation costs associated with a
sinkhole beneath a phosphogypsum storage stack at IMC-Agrico's New
Wales, Florida fertilizer facility, repair and cleanup costs related
to an earthen dam breach at two of its phosphate rock facilities and
other miscellaneous charges.
(b). Includes charges totaling $49.3 million ($0.47 per unit)
and $173.6 million ($1.67 per unit) for the fourth-quarter and
twelve-month period, respectively, for restructuring, asset
recoverability and other related charges.
(c). Includes a $23.7 million charge ($0.23 per unit) for the
cumulative effect of changes in accounting principle.
(d). Includes a gain of $10.7 million and charges totaling $73.5
million for the fourth-quarter and twelve-month period, respectively,
for items discussed in Note b.
(e). Includes a $60.0 million charge related to the
recoverability of Main Pass oil assets.
(f). Certain information prior to the formation of IMC-Agrico
was not recorded on a basis consistent with that currently being
presented and therefore is not available. Reflects FRP's 46.5
percent share of the IMC-Agrico assets for the year ended June 30,
1994, while FRP received 58.6 percent of the cash flow generated
during such period. FRP's share of the IMC-Agrico assets for the
year ended June 30, 1995 is 45.1 percent, while FRP will receive 55.0
percent of the cash flow.
(g). Represents average realization f.o.b. plant/mine.
(h). Includes 175,400 tons and 209,800 tons for the fourth
quarter of 1994 an 1993, respectively, and 739,900 tons and 1,138,800
tons for the twelve-month periods of 1994 and 1993, respectively,
which represent internal consumption and Main Pass start-up sales
that are not included in sales for accounting purposes.
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Years Ended
December 31, December 31,
------------------- ---------------------
1994 1993 1994 1993
-------- -------- -------- ---------
(In Thousands, Except Per Unit Amounts)
Revenues $209,282 $168,108 $765,278 $669,160
Cost of sales:
Production and delivery 143,810a 137,296 547,297a 556,712
Depreciation and
amortization 18,368b 26,096 52,344b 104,686
-------- -------- -------- ---------
Total cost of sales 162,178 163,392 599,641 661,398 Exploration expenses - 318 - 3,092
Provision for
restructuring charges - - - 33,947
Loss on valuation and
sale of assets, net - 49,255 - 114,802
General and
administrative
expenses 10,771 12,568 45,019 66,769
-------- -------- -------- ---------
Total costs and
expenses 172,949 225,533 644,660 880,008
-------- -------- -------- ---------
Operating income (loss) 36,333 (57,425) 120,618 (210,848)
Interest expense, net (9,410) (6,617) (33,519) (12,870)
Other income (expense),
net (167) 215 (3,133) 1,307
-------- -------- -------- ---------
Income (loss) before
changes in accounting
principle 26,756a (63,827)c 83,966a (222,411)c
Cumulative effect of
changes in accounting
principle - - - (23,700)
-------- -------- -------- ---------
Net income (loss) $ 26,756 $(63,827) $ 83,966 $(246,111)
======== ======== ======== =========
Net income (loss) per unit:
Before changes in
accounting principle $.26a $(.62)c $.81a $(2.14)c
Cumulative effect of
changes in accounting
principle - - - (.23)
---- ----- ---- ------
$.26 $(.62) $.81 $(2.37)
==== ===== ==== ======
Average units
outstanding 103,639 103,698 103,683 103,698
======= ======= ======= =======
Distributions per
publicly held unit $.60 $.60 $2.40 $2.40
==== ==== ===== =====
(a). Includes a charge of $3.7 million ($0.04 per unit) and $8.0
million ($0.08 per unit) for the fourth-quarter and twelve-month
period, respectively, for remediation costs associated with a
sinkhole beneath a phosphogypsum storage stack at IMC-Agrico's New
Wales, Florida fertilizer facility, repair and cleanup costs related
to an earthen dam breach at two of its phosphate rock facilities and
other miscellaneous charges.
(b). The decline primarily results from adjustments related to
IMC-Agrico arrangements and lower Main Pass oil sales volumes.
(c). Includes charges totaling $49.3 million ($0.47 per unit)
and $173.6 million ($1.67 per unit) for the fourth-quarter and
twelve-month period, respectively, for restructuring, asset
recoverability and other related charges.
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS (Unaudited)
December 31,
--------------------------
1994 1993
---------- ----------
(In Thousands)
ASSETS
Current assets:
Cash and short-term investments $ 9,859 $ 24,448
Accounts receivable 58,265 62,902
Inventories 109,677 133,405
Prepaid expenses and other 1,350 2,143
---------- ----------
Total current assets 179,151 222,898
Property, plant and equipment, net 910,469 970,960
Other assets 57,311 103,015
---------- ----------
Total assets $1,146,931 $1,296,873
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued liabilities $ 84,888 $ 78,908
Long-term debt, less current portion 368,637 488,102
Reclamation and mine shutdown reserves 96,445 97,333
Accrued postretirement benefits and
other liabilities 149,301 140,126
Partners' capital 447,660 492,404
---------- ----------
Total liabilities and partners' capital $1,146,931 $1,296,873
========== ==========
FREEPORT-McMoRan RESOURCE PARTNERS, LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOW (Unaudited)
Years Ended December 31,
------------------------
1994 1993
-------- ---------
(In Thousands)
Cash flow from operating activities:
Net income (loss) $ 83,966 $(246,111)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Cumulative effect of changes in
accounting principle - 23,700
Depreciation and amortization 52,344 104,686
Other noncash charges to earnings 12,200 7,845
Provision for restructuring charges, net of
payments - 3,143
Loss on valuation and sale of assets, net - 114,802
Cash distribution from IMC-Agrico in
excess of capital interest 43,293 -
Reclamation and mine shutdown expenditures (9,837) (9,980)
(Increase) decrease in working capital, net
of effect of acquisitions and dispositions:
Accounts receivable 3,531 710
Inventories 20,522 20,793
Prepaid expenses and other 679 (495)
Accounts payable and accrued liabilities 14,688 (31,427)
Other 44 9,388
-------- ---------
Net cash provided by (used in) operating
activities 221,430 (2,946)
-------- ---------
Cash flow from investing activities:
Capital expenditures:
Main Pass (10,941) (37,427)
Agricultural minerals (18,740) (14,743)
Sale of assets 44,774 49,961
Other 530 4,711
-------- ---------
Net cash provided by investing activities 15,623 2,502
-------- ---------
Cash flow from financing activities:
Distributions to partners (127,368) (121,180)
Proceeds from (repayments of) debt, net (269,057) 138,973
Purchase of Partnership units (1,342) -
Proceeds from 8 3/4% Senior subordinated notes 146,125 -
-------- ---------
Net cash provided by (used in) financing
activities (251,642) 17,793
-------- ---------
Net increase (decrease) in cash and short-term
investments (14,589) 17,349
Cash and short-term investments at
beginning of year 24,448 7,099
-------- ---------
Cash and short-term investments at end of year $ 9,859 $ 24,448
======== =========
CONTACT: Freeport-McMoRan Resource Partners, Limited Partnership, New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. E. Saporito, 504/582-4476 |
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