Printer Friendly

SHELL CANADA ANNOUNCES SECOND QUARTER FINANCIAL RESULTS

 CALGARY, July 28 /PRNewswire/ -- Shell Canada's (Toronto: SHC) consolidated earnings for the first half of 1993 were $12 million or 10 cents per Class "A" common share compared with a loss of $7 million or 6 cents per share for 1992.
 Shell's earnings have improved slightly, the result of both volume increases and modestly improved margins in the Oil Products business, and higher prices for all Resources commodities except sulfur. Oil Products results include unusually large bad debt provisions of approximately $25 million after tax for trade receivables.
 C. W. Wilson, president and chief executive officer said, "These results are clearly unacceptable. An intensive cmpany-wide review of operations is underway to realize significant further cost reductions and profit improvements. This will involve accelerating restructuring initiatives. We expect the majority of the benefits to be realized by the end of 1994."
 Resources' earnings of $43 million for the first six months in 1993 were comparable to 1992. The 1993 earnings include gains on non-core asset divestments of $4 million, while the 1992 earnings included gains of $23 million. Natural gas prices have increased as the supply/demand balance improves, partially offset by lower crude oil volumes resulting from non-core property divestments. An international oversupply of sulfur continues to exert extreme pressure on price. Higher liquids volumes are the result of Caroline starting to come onstream.
 Oil Products' earnings of $17 million for the first half of 1993 improved over the 1992 loss of $11 million. This increase is largely due to volume gains in the retailing business, the addition of a large wholesale account and minor increases in industry demand.
 Chemicals' earnings of $4 million for the first six months of 1993 compare with a loss of $6 million for the same period of 1992, the result of temporary styrene supply tightness.
 Corporate expenses were $52 million for the 1993 first half, compared with $37 million for 1992. This increase is primarily due to the higher debt level during the 1993 period.
 A loss of $3 million or 3 cents per share was recorded for the second quarter of 1993, compared with a loss of $12 million or 11 cents per share in 1992. The reasons for this increase result from the same factors affecting the first half of 1993, as described above.
 SHELL CANADA LIMITED AND SUBSIDIARY COMPANIES
 Financial and Operating Highlights
 (Unaudited, dollars in millions)
 Second Quarter First Half
 Financial Highlights 1993 1992 1993 1992
 Revenues 1 154 1 051 2 305 2 044
 Cash flow from operations 105 76 253 202
 Cash from operating activities 62 90 165 236
 Earnings (loss) (3) (12) 12 (7)
 Earnings (loss) per Class "A"
 common share (dollars) (0.03) (0.11) 0.10 (0.06)
 Results by Segment
 Revenues (excluding inter-segment sales)
 Resources 168 125 345 268
 Oil Products 839 779 1 681 1 494
 Chemicals 150 145 283 279
 Corporate (3) 2 (4) 3
 Total 1 154 1 051 2 305 2 044
 Cash flow from operations
 Resources 83 78 185 163
 Oil Products 33 3 89 51
 Chemicals 10 - 19 7
 Corporate (21) (5) (40) (19)
 Total 105 76 253 202
 Earnings
 Resources 19 32 43 47
 Oil Products (1) (20) 17 (11)
 Chemicals 4 (5) 4 (6)
 Corporate (25) (19) (52) (37)
 Total (3) (12) 12 (7)
 Capital and
 exploration expenditures
 Resources 68 112 151 275
 Oil Products 26 29 42 64
 Chemicals 1 2 1 3
 Corporate 1 2 3 3
 Total 96 145 197 345
 Second Quarter First Half
 Percent Percent
 Operating Highlights 1993 Change 1993 Change
 Crude oil and natural gas
 liquids produced - gross
 (m3/d) 11 000 +18 10 200 +2
 Natural gas sales from own
 production - gross
 (thousands of m3/d) 16 800 -2 18 500 -2
 Sulfur produced - gross
 (tons/d) 3 466 +5 3 684 +6
 Sulfur sales from own
 production - gross
 (tons/d) 4 000 -19 4 402 -3
 Crude oil processed by
 Shell refineries
 (m3/d) 38 400 +8 41 000 +6
 Petroleum product sales
 (m3/d) 37 600 +7 38 000 +12
 Chemical sales
 (tons/d) 2 710 +2 2 647 +2
 Unusual items
 The following items resulted from transactions or events that do
 not typify normal business activities.
 Second Quarter First Half
 1993 1992 1993 1992
 ($ millions)
 Gain on divestment of
 non-core Resources assets
 Before income taxes 8 23 6 36
 After income taxes 5 15 4 23
 -0- 7/28/93
 /CONTACT: Tony Mitchell, manager of investor relations of Shell Canada Limited, 403-691-2175/
 (SHC)


CO: Shell Canada Limited ST: IN: OIL SU: ERN

TM -- NY003 -- 6585 07/28/93 08:16 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 28, 1993
Words:765
Previous Article:GAINSCO REPORTS 8 PERCENT INCREASE IN EARNINGS
Next Article:MARVEL ANNOUNCES 104 PERCENT GAIN IN 2ND QUARTER NET INCOME
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters