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PETRO-CANADA CONTINUES STRONG GROWTH IN EARNINGS AND CASH FLOW

 CALGARY, Alberta, Oct. 28 /PRNewswire/ -- Petro-Canada today announced third quarter net earnings of $55 million ($0.22 per share), compared to a loss of $56 million ($0.26 per share) a year earlier. Results for 1993 do not include any unusual items, which increased the 1992 loss by $58 million. Third quarter cash flow from operations rose to $177 million ($0.71 per share) from $117 million ($0.54 per share) in the comparable period of 1992.
 For the first nine months of 1993, consolidated net earnings were $126 million ($0.51 per share), $144 million higher than earnings for the same period last year. Gains on asset sales contributed $9 million to earnings, compared to $25 million in the first nine months of 1992. Cash flow from operations in the first nine months was $467 million ($1.89 per share), an increase of $106 million from the same period in 1992.
 Commenting on the third quarter results, President and Chief Executive Officer Jim Stanford said, "We have achieved strong gains in earnings and cash flow by consistently implementing our plan for better performance. Our Products division had its best quarter in three years, as its strategy of cost management and network rationalization enabled it to benefit from somewhat improved market conditions. A lower cost structure, a strategic focus on key properties and increased production volumes strengthened the Resources division's operating results. Our employees deserve a great deal of credit for this solid improvement in the company's performance."
 Stanford added, "I am delighted that our credit ratings were recently upgraded by a leading Canadian credit rating agency. This upgrade recognizes the improvements in Petro-Canada's operating performance. We will continue to manage our debt at prudent levels."
 Slightly higher margins and the continued focus on cost management enabled the Products division to report significantly improved results.
 Increased production and prices for natural gas and straddle plant natural gas liquids were key to improved Resources division operating earnings. Hedging gains and a lower Canadian dollar more than offset the impact of a sharp decline in the price of West Texas Intermediate crude oil.
 The board of directors has declared a quarterly dividend of 3.25 cents per share payable on Jan. 1 to shareholders of record on Dec. 3, 1993.
 Petro-Canada is the largest Canadian-owned integrated oil company. The company's Resources division explores for, produces and markets crude oil, natural gas and natural gas liquids. Petro-Canada's Products division refines crude oil and distributes and markets petroleum products. Petro-Canada shares trade on all Canadian exchanges, under the symbol PCA.
 PETRO-CANADA
 Selected Financial Data
 (Unaudited, millions of dollars)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Revenue
 Resources 264 241 766 738
 Products 982 1,060 2,889 2,950
 Corporate and other 65 66 244 234
 Inter-segment sales (136) (158) (451) (454)
 Total 1,175 1,209 3,448 3,468
 Net earnings (loss)
 Resources 37 27 94 116
 Products 40 7 88 16
 Corporate and other
 -- From operations (22) (32) (56) (50)
 -- Restructure and
 reorganization --- --- --- (39)
 -- Loss on retirement of
 long-term debt --- (30) --- (33)
 -- Loss on disposal of
 investments --- (28) --- (28)
 Total (22) (90) (56) (150)
 Total 55 (56) 126 (18)
 Cash flow from operations
 Resources 88 79 254 249
 Products 95 51 229 153
 Corporate and other (6) (13) (16) (41)
 Total 177 117 467 361
 Expenditures on property,
 plant and equipment and
 exploration
 Resources 95 63 276 211
 Products 50 21 101 47
 Corporate and Other 5 4 12 9
 Total 150 88 389 267
 Cash flow return on capital
 employed (12 month rolling
 average -- percent) 15.0 10.1
 Debt 1,052 1,197
 Debt to debt plus equity
 (percent) 27.7 33.5
 Selected Operating Data
 Third Quarter Nine Months
 1993 1992 1993 1992
 Crude oil and natural gas
 liquids production, net
 before royalties (thousands
 of barrels per day)
 Conventional crude oil 46.4 42.9 45.3 43.2
 Synthetic and bitumen 23.1 20.5 21.1 24.3
 Field natural gas liquids 11.3 12.6 12.5 12.6
 Ethane and natural gas
 liquids production from
 straddle plants 40.8 31.1 41.1 36.0
 Natural gas production, net
 before royalties (millions
 of cubic feet per day)
 Including injectants 546 494 565 502
 Excluding injectants 543 484 560 491
 Petroleum product sales
 (thousands of cubic meters
 per day)
 Gasolines 19.8 21.8 19.4 20.8
 Distillates 14.0 14.2 14.4 14.2
 Other including
 petrochemicals 10.0 9.8 8.0 8.1
 Total 43.8 45.8 41.8 43.1
 Crude oil processed by
 Petro-Canada (thousands
 of cubic meters per day) 43.9 45.3 41.9 41.9
 Average refinery utilization
 (percent) 85 79 78 73
 Propane sales (millions
 of liters) 254 276 855 868
 Consolidated Statement of Earnings
 (Unaudited, millions of dollars)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Revenue
 Operating 1,155 1,185 3,361 3,342
 Investment and other income 20 24 87 126
 Total 1,175 1,209 3,448 3,468
 Expenses
 Crude oil and product
 purchases 554 646 1,656 1,716
 Producing, refining and
 marketing 333 324 980 971
 General and administrative 53 56 166 179
 Exploration 5 11 22 35
 Depreciation, depletion and
 amortization 82 95 256 292
 Taxes other than income taxes 17 16 48 49
 Interest on long-term debt 18 29 52 96
 Other interest 5 6 11 (1)
 Total 1,067 1,183 3,191 3,337
 Restructure and reorganization
 expenses --- --- --- (60)
 Loss on retirement of long-term
 debt --- (47) --- (53)
 Loss on disposal of
 investments --- (8) --- (8)
 Earnings (loss) before
 income taxes 108 (29) 257 10
 Provision for income
 taxes 53 27 131 28
 Net earnings (loss) 55 (56) 126 (18)
 Consolidated Statement of Retained Earnings
 (Unaudited, millions of dollars)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Retained earnings (deficit)
 at beginning of period (673) (685) (728) (709)
 Net earnings (loss) 55 (56) 126 (18)
 Dividends on common shares (8) (7) (24) (21)
 Retained earnings (deficit)
 at end of period (626) (748) (626) (748)
 Share Information
 (Unaudited, stated in dollars)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Net earnings (loss) per
 share 0.22 (0.26) 0.51 (0.08)
 Cash flow from operations
 per share 0.71 0.54 1.89 1.67
 Dividends per share 0.0325 0.0325 0.0975 0.0975
 Share Price(a)
 -- High 13 1/8 10 13 1/8 10 7/8
 -- Low 9 3/4 7 7/8 7 1/4 7 7/8
 -- Close at Sept. 30 12 5/8 9 1/2 12 5/8 9 1/2
 Average shares outstanding
 (millions) 246.5 216.1 246.5 215.6
 Shares traded(b) (millions) 14.8 7.2 73.6 20.4
 (a) Share prices are for trading on the Toronto Stock Exchange.
 (b) Total shares traded on the Toronto, Montreal, Vancouver and
 Alberta stock exchanges.
 Consolidated Statement of Changes in Financial Position
 (Unaudited, millions of dollars)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Operating activities
 Net earnings (loss) 55 (56) 126 (18)
 Items not affecting cash
 flow from operations 117 162 319 344
 Exploration expenses 5 11 22 35
 Cash flow from operations 177 117 467 361
 Decrease in advances on
 future natural gas
 deliveries --- --- (8) (9)
 (Increase) decrease in
 operating working capital (17) 20 (118) 10
 Total 160 137 341 362
 Investing activities
 Expenditures on property,
 plant and equipment and
 exploration (150) (88) (389) (267)
 Proceeds from sale of
 property, plant and
 equipment 14 58 63 228
 Proceeds from sale of
 investments --- 348 --- 348
 Other decrease (increase) in
 investments, net 2 1 (15) (2)
 Increase in deferred charges
 and other assets, net (7) (3) (11) (10)
 Total (141) 316 (352) 297
 Financing activities and
 dividends
 Proceeds from issue of
 long-term debt --- --- --- 100
 Increase in bank loan --- 50 --- 50
 Increase in notes payable
 -- Hibernia 24 --- 140 ---
 Decrease in other short-term
 notes payable, net (10) (89) --- (50)
 Increase (decrease) in short-
 term notes payable
 -- Hibernia --- 11 (86) 70
 Reduction of long-term debt --- (416) (90) (809)
 Dividends on common shares (8) (7) (24) (21)
 Total 6 (451) (60) (660)
 Increase (decrease) in cash
 and short-term deposits 25 2 (71) (1)
 Cash and short-term deposits
 (deficiency) at beginning of
 period (14) (15) 82 (12)
 Cash and short-term deposits
 (deficiency) at end of
 period 11 (13) 11 (13)
 Consolidated Balance Sheet
 (Unaudited, millions of dollars)
 Sept. 30, Dec. 31,
 1993 1992
 Assets
 Current assets
 Cash and short-term deposits 11 82
 Other current assets 1,066 1,074
 Total 1,077 1,156
 Investments 94 80
 Property, plant and equipment, net 3,938 3,865
 Deferred charges and other assets 291 249
 Total 5,400 5,350
 Liabilities and shareholders' equity
 Current liabilities
 Other current liabilities 847 933
 Short-term notes payable -- Hibernia --- 86(a)
 Current portion of long-term debt --- 89
 Total 847 1,108
 Long-term debt 912 868
 Notes payable -- Hibernia 140 ---(a)
 Deferred credits 251 264
 Deferred income taxes 505 467
 Shareholders' equity 2,745 2,643
 Total 5,400 5,350
 (a) The notes payable relate to the Hibernia Project and are guaranteed by the Government of Canada; recourse is limited to the Hibernia Project and related net revenues. These notes are classified as long-term in 1993 pursuant to the completion of an arrangement which resolved the ownership of the Project.
 -0- 10/28/93
 /CONTACT: Bob Foulkes (media), Public and Government Affairs, 403-296-8472, John Skelton (investors), Investor Relations, 403-296-4040/
 (PCA.)


CO: Petro-Canada ST: Alberta IN: OIL SU: ERN

JB-EH -- LA024 -- 7988 10/28/93 13:52 EDT
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Date:Oct 28, 1993
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