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ULTRAMAR CORPORATION REPORTS FIRST QUARTER 1993 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND

 TARRYTOWN, N.Y., April 21 /PRNewswire/ -- Ultramar Corporation (NYSE: ULR) reported today that first quarter 1993 net income was $24.8 million or $.64 per share. Pro-forma net income for the first quarter of 1992 was $21.2 million or $.55 per share.
 Cash flow from operations was $50.8 million or $1.32 per share in the first quarter of 1993 compared to pro-forma cash flow of $41.6 million or $1.08 per share in the first quarter of 1992.
 At a meeting held yesterday, the company's board declared a dividend of 27.5 cents per share which will be paid on June 8, 1993, to holders of record on May 4, 1993.
 Commenting on the first quarter results, Jean Gaulin, chairman and CEO, said, "The first quarter was very good both operationally and financially. In California, we had excellent results from our retail marketing operation and from our Wilmington refinery. We also had a good performance from our two Eastern Canadian refineries. However, the drop in margins in our Eastern Canadian retail and commercial and industrial businesses adversely affected our overall financial performance. The cost reduction program we put in place in the second half of 1992 continues to provide benefits, particularly from Canada. Operating and selling, general and administration expenses were over $10 million below the figure for the comparable period last year."
 In California, despite oxygenates adding to the gasoline supply in the first quarter, refining margins were stronger than expected, reflecting product supply concerns arising from unscheduled downtime and planned turnarounds at several competitor refineries. The Wilmington refinery benefitted in the first quarter from an increase in its ability to process sulfur. The expansion in the refinery's sulfur removal capacity was brought onstream gradually starting in October of 1992 and is now operating at full rates. The expansion has allowed the company to increase runs of cheaper, sour crude oil by over 10,000 barrels per day.
 The Wilmington refinery had an average margin of $6.61 per barrel for the three months ended March 31, 1993 compared to $7.58 per barrel for the comparable period in 1992. The average throughput at the Wilmington refinery was 87,900 barrels per day (BPD) in the first quarter compared to 69,700 BPD in the first quarter of 1992. Throughput in the first quarter of 1992 was reduced due to a planned catalytic cracker unit turnaround.
 Retail marketing margins in California continued to be well above historical levels during the first quarter, although they did decline as the quarter progressed. Retail margins at company-operated stations averaged 16.9 cents per gallon in the quarter compared to 8.9 cents per gallon in the first quarter of last year.
 In Eastern Canada, the Quebec refinery benefitted from a widening in the Brent-West Texas Intermediate crude price differential and from strong sales of heating oil in February and March as a result of the colder weather. The Quebec refinery had an average throughput of 108,000 BPD compared to 104,600 BPD in the first quarter of 1992. Throughput at the refinery was reduced during the first quarter of 1993 due to unusual weather-related delays in crude oil and product shipments. The average refining margin for the Quebec and Halifax refineries was $3.87 per barrel in the first quarter of this year compared to $2.54 per barrel in the corresponding quarter of 1992.
 Retail marketing volumes in Eastern Canada, including motorist, cardlock and home heating sales, averaged 56,900 BPD in the first quarter of 1993 compared to 58,800 BPD in the first quarter of 1992. Retail margins averaged 23.1 cents per gallon during the first quarter of 1993 and were below historical levels as very competitive market conditions continue to squeeze margins.
 In February 1993, the company entered into an 18-month arrangement under which the Halifax refinery will process approximately 22,000 BPD of crude oil for Statoil North America Inc., a wholly owned subsidiary of the Norwegian national oil company. Most of the refined product manufactured under this processing agreement will be sold by Statoil to the export market. The portion of the company's market demand that had been supplied by the Halifax refinery will be supplied starting in the third quarter from the Quebec refinery, following its 20,000 BPD expansion. The company expects to benefit from this arrangement by receiving a per barrel processing fee which should cover most of the operating expenses at the Halifax refinery; by utilizing the Quebec refinery, which has a lower incremental cost of manufacturing, at higher rates; and from lower working capital requirements.
 Gaulin, in discussing current business conditions, said, "Refining margins in Eastern Canada have come down from the first quarter's level. In California, we have not yet seen the normal second quarter improvement in refining margins. Retail margins in Canada are still depressed, and in California they have come down to about 9 cents per gallon. In the second quarter, we've planned a major turnaround at the Quebec refinery, and we have decided to bring forward into the second quarter a more limited maintenance turnaround at the Wilmington refinery."
 Ultramar Corporation is a petroleum refining and marketing company which operates in California and in Eastern Canada through two subsidiaries. In 1992, the company sold over 250,000 barrels per day of refined petroleum products and had total revenues of $2.6 billion.
 Ultramar Corporation was formed in April 1992 to acquire Ultramar Inc. and Ultramar Canada Inc. from Ultramar PLC, a British company, and its former subsidiaries. Ultramar Corporation acquired these businesses with monies raised from an initial public offering of common stock and the issuance of long-term senior notes. The common stock of Ultramar Corporation (ticker symbol: ULR) began trading on the New York, Toronto and Montreal stock exchanges on June 26, 1992. The company employs approximately 3,300 people.
 ULTRAMAR CORPORATION AND SUBSIDIARIES
 (U.S. dollars in thousands, except earnings per share amounts)
 (Unaudited)(A)
 Three Months Ended March 31,
 ---------1993----------- ---------1992-----------
 Pro Forma
 U.S. Canada Total U.S. Canada Total
 FINANCIAL DATA (A)
 Revenues $283,229 $375,717 $658,946 $246,552 $387,754 $634,306
 Depreciation &
 amortization 4,561 4,541 9,102 4,155 3,407 7,562
 Operating inc. 23,321 32,519 55,840 18,085 31,162 49,247
 Income before
 income taxes 19,851 23,020 42,871 14,435 21,215 35,650
 Net income $ 11,917 $ 12,858 $ 24,775 $ 8,587 $ 12,612 $ 21,199
 Net income per
 share $.31 $.33 $.64 $.22 $.33 $.55
 Cash flow from
 operations $ 22,618 $ 28,224 $ 50,842 $ 16,701 $ 24,886 $ 41,587
 OPERATING DATA
 Three months ended March 31 1993 1992
 Wilmington Refinery:
 Throughput (barrels per day) 87,900 69,700
 Margin (U.S.$ per barrel) 6.61 7.58
 Quebec & Halifax Refineries Combined (B):
 Throughput (barrels per day) 119,000 126,700
 Margin (U.S.$ per barrel) 3.87 2.54
 Retail Marketing:
 California:
 Sales (barrels per day) 33,900 33,900
 Overall margin (cents per gallon) 14.5 cents 9.3 cents
 California (company operated only):
 Sales (barrels per day) 17,100 17,400
 Fuel margin (cents per gallon) 16.9 cents 8.9 cents
 Eastern Canada:
 Sales (barrels per day) 56,900 58,800
 Overall margin (cents per gallon) 23.1 cents 30.2 cents
 (A) -- Trading of the company's stock began on June 26, 1992, in an initial public offering. As a result, actual financial and operating data for Ultramar Corporation were presented for the first time for the three months ended Sept. 30, 1992. Financial and operating data for the first three months of 1992 reflect the predecessor operations of the Eastern Canadian and California operations and, on a pro forma basis, the initial public offering and associated transactions.
 (B) -- Throughput at the Halifax refinery is included until the start of the Statoil processing agreement on Feb. 16, 1993. Throughput at the Halifax refinery averaged 22,400 BPD for the full three months.
 -0- 4/21/93
 /CONTACT: Steven Blank of Ultramar, 914-333-2019; or Lissa Perlman of Kekst and Company, 212-593-2655, for Ultramar/
 (ULR)


CO: Ultramar Corporation ST: New York IN: OIL SU: ERN DIV

GK-SS -- NY016 -- 8574 04/21/93 09:51 EDT
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