Printer Friendly

ULTRAMAR CORPORATION REPORTS FOURTH QUARTER AND YEAR-END 1992 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND

 TARRYTOWN, N.Y., Jan. 27 /PRNewswire/ -- Ultramar Corporation (NYSE: ULR) reported today preliminary financial results for its fourth quarter and year ended Dec. 31, 1992.
 Fourth quarter 1992 net income was $15.3 million or 40 cents per share. Net income for the year ended Dec. 31, 1992, excluding a third quarter non-cash, non-operating foreign exchange loss was $62.9 million or $1.65 per share. Taking into account the foreign exchange loss, net income was $56.3 million or $1.47 per share for the year ended Dec. 31, 1992.
 Cash flow from operations was $32.9 million for the quarter or 86 per share and $128 million or $3.35 per share for the year ended Dec. 31, 1992.
 At a meeting held on Jan. 26, the company's board declared a dividend of 27.5 cents per share which will be paid on March 16, 1993, to holders of record on Feb. 9, 1993.
 Commenting on the results for the year and for the fourth quarter, Jean Gaulin, chairman and CEO, said, "The year 1992 was difficult for the refining and marketing industry as excess supply placed downward pressure on margins. In this climate, our low-cost producer status is especially important. We are continuing to work toward additional improvements in productivity and efficiency to further enhance our competitive position. Cost reduction and business restructuring programs initiated earlier this year have resulted in reducing expenses by $14 million in the fourth quarter 1992 from 1991's fourth quarter level of $58 million."
 Financial results in the fourth quarter showed an improvement on the third quarter, but were still below the company's expectations. In eastern Canada, refining margins were depressed reflecting a general oversupply of product in the North Atlantic Basin. Throughputs at the company's two eastern Canadian refineries were excellent during the quarter averaging 142,700 barrels per day. In California, refining margins improved early in the quarter due to supply disruptions resulting from scheduled and unscheduled downtime at several competitor refineries. However, refining margins dropped in November following the mandated introduction of oxygenates into the gasoline pool and generally stayed at lower levels until late in the quarter. West Coast retail margins were extremely strong during the quarter and were at levels considerably higher than seen over the last few years.
 Commenting on current business conditions, Jack Drosdick, president and chief operating officer, said, "Refining margins in California have improved and retail margins continue to be very strong. In eastern Canada, refining margins have recovered somewhat from the low levels in December, but retail gasoline margins are under pressure and heating oil sales are weak due to warm weather."
 On Jan. 5, a chartered tanker carrying a cargo of crude owned by the company's subsidiary, Canadian Ultramar Limited, lost all power in rough seas and went aground on the Shetland Isles off the northern coast of Scotland and spilled its cargo. Ultramar Chairman Jean Gaulin traveled immediately to the Shetlands and company officials have been monitoring the situation closely. The tanker is not owned or operated by Ultramar and under United Kingdom law the shipowner is strictly liable for damage caused by the spill. The company's cargo is fully insured and the company expects to recover substantially the full value of the cargo from its insurers.
 The company has awarded a $45 million contract to Fluor Daniels for the engineering, procurement and construction management of a capital program which will allow the company to comply with federal reformulated gasoline specifications at the company's Wilmington, Calif., refinery. The company plans to spend approximately $125 million in total over the next three years to enable it to make reformulated gasoline to both federal and California standards. The signing of the contract with Fluor Daniels is an important step towards full and expected early compliance with the federal regulation which comes into effect in January 1995 and with the California standard which becomes effective in January 1996.
 ULTRAMAR CORPORATION AND SUBSIDIARIES
 (Unaudited/A/; U.S. dollars in thousands,
 except earnings per share amounts)
 Periods ended Three Months 12 Months
 Dec. 31 1992 1991 1992 1991
 Financial Data(A)
 Revenues $654,338 $673,192 $2,595,489 $2,754,198
 Operating income 35,299 34,298 149,228 200,067
 Income before foreign
 exchange adjustment 15,265 14,025 62,929 84,903
 Earnings before foreign
 exchange adjustment
 per share $0.40 $0.37 $1.65 $2.23
 Net income(B) 15,265 14,025 56,344 84,903
 Net income per share $0.40 $0.37 $1.47 $2.23
 Cash flow from opers. 32,923 28,681 127,977 160,603
 Operating Data
 Wilmington refinery:
 Throughput
 (barrels per day) 83,300 86,500 79,400 84,200
 Margin (US$ per barrel)
 restated $5.01 $5.95 $6.08 $5.93
 Quebec and Halifax
 refineries combined:
 Throughput
 (barrels per day) 142,700 138,300 133,200 128,600
 Margin (US$ per barrel) $2.69 $4.43 $2.95 $4.97
 Retail marketing:
 California:
 Sales
 (barrels per day) 34,700 35,700 35,200 36,800
 Margin
 (cents per gallon) 17.4 8.9 12.3 8.7
 California (company
 operated only):
 Sales
 (barrels per day) 16,900 18,000 17,400 19,000
 Margin
 (cents per gallon) 21.7 8.1 13.2 7.5
 Eastern Canada:
 Sales
 (barrels per day) 53,300 53,800 52,000 49,300
 Margin
 (cents per gallon) 23.7 23.8 24.8 25.7
 (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 six months of 1992 and all of 1991 reflect the predecessor operations of the eastern Canadian and California operations adjusted, on a pro forma basis, to reflect the initial public offering and associated transactions.
 (B) -- Net income and net income per share figures for the year 1992 include a non-cash, non-operating foreign exchange adjustment, net of tax, of $6.6 million or 18 cents per share.
 -0- 1/27/93
 /CONTACT: Steven Blank of Ultramar Corporation, 914-333-2019, or Lissa Perlman of Kekst & Co., 212-593-2655, for Ultramar Corporation/
 (ULR)


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

LR-CK -- NY043 -- 9600 01/27/93 11:33 EST
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:Jan 27, 1993
Words:1064
Previous Article:DR PEPPER/SEVEN-UP COMPANIES, INC. OFFERS 20,522,089 COMMON SHARES AT $15.00 PER SHARE
Next Article:MCGRAW-HILL ELECTS RICHARD H. JENRETTE TO BOARD OF DIRECTORS
Topics:


Related Articles
ULTRAMAR REPORTS SECOND QUARTER 1992 EARNINGS; BOARD DECLARES FIRST QUARTERLY DIVIDEND
ULTRAMAR CORPORATION REPORTS THIRD QUARTER 1992 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND
ULTRAMAR CORPORATION REPORTS FIRST QUARTER 1993 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND
ENERGEN REPORTS INCREASED SECOND QUARTER EARNINGS
ULTRAMAR CORPORATION REPORTS SECOND QUARTER 1993 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND
ULTRAMAR CORPORATION REPORTS FIRST QUARTER 1994 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND
ULTRAMAR CORPORATION REPORTS THIRD QUARTER 1994 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND
ULTRAMAR SEES WEAK MARGINS REDUCING FOURTH QUARTER 1994 NET INCOME; 1995 CAPITAL SPENDING REDUCED -- FOCUS ON MARGIN IMPROVEMENT PROJECTS
ULTRAMAR CORPORATION REPORTS FOURTH QUARTER AND YEAR-END 1994 EARNINGS; BOARD DECLARES QUARTERLY DIVIDEND
Ultramar Diamond Shamrock Corporation Declares Regular Quarterly Dividend

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