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

 GREENWICH, Conn., July 22 /PRNewswire/ -- Ultramar Corporation (NYSE: ULR) reported today that second quarter 1993 net income was $15.3 million or $.40 per share. Pro-forma net income for the second quarter of 1992 was $19.3 million or $.50 per share.
 Net income for the six months ended June 30, 1993, was $40.1 million or $1.04 per share, compared to pro-forma net income for the six months ended June 30, 1992, of $40.5 million or $1.05 per share.
 Cash flow from operations was $30.2 million or $.78 per share in the second quarter of 1993 compared to pro-forma cash flow of $35.9 million or $.93 per share in the second quarter of 1992.
 Cash flow from operations for the six months ended June 30, 1993, was $80.9 million or $2.10 per share, compared to pro-forma cash flow from operations for the six months ended June 30, 1992, of $77.5 million or $2.01 per share.
 At a meeting held on July 21, 1993, the company's board declared a dividend of 27.5 cents per share which will be paid on Sept. 9, 1993, to holders of record on Aug. 5, 1993.
 Commenting on the second quarter financial and operating performance, Jean Gaulin, chairman and CEO, said, "Planned maintenance turnarounds, which limited refinery throughputs, and low retail margins in Eastern Canada reduced operating profits in the second quarter. We continue to be pleased with our cost-cutting efforts. In the third quarter of last year, we announced measures expected to result in an annual operating and administrative cost reduction of $35 million. Over the last nine months we have lowered our administrative and operating costs by over $44 million from the amount spent during the nine months ended June 30, 1992."
 In California, the Wilmington refinery had an average margin of $6.36 per barrel in the second quarter of 1993 compared to $6.95 per barrel for the comparable period in 1992. The average throughput at the Wilmington refinery was 79,300 barrels per day (BPD) during the second quarter of 1993 compared to 80,100 BPD in the second quarter of 1992. The reduction in throughput was due largely to a planned maintenance turnaround of the Platformer and Unibon and related units at the refinery. A limited turnaround was performed at the refinery in the second quarter of 1992 as well.
 Retail marketing sales in California averaged 36,200 BPD in the second quarter of 1993 and were at the same level as the second quarter of last year, despite operating with 11 fewer stations. Retail marketing margins at company-operated stations were 3.7 cents a gallon higher in the second quarter of 1993 than in the second quarter of 1992. Retail marketing margins averaged 10.6 cents per gallon vs. 6.9 cents per gallon in the second quarter of 1992. Retail margins declined early in the quarter from the first quarter's level and then improved as rack prices declined. Currently, retail margins at company-operated stations are in the 15-16 cent per gallon range.
 In Eastern Canada, the margin at the Quebec refinery averaged $4.12 per barrel in the second quarter vs. $4.09 per barrel in the second quarter of 1992. Throughput at the Quebec refinery averaged 82,600 BPD in the second quarter compared to 104,800 BPD in the comparable period of last year. Throughput was reduced due to a major planned maintenance turnaround of the crude, vacuum and Platformer units at the refinery. The turnaround, which lasted slightly more than four weeks, was completed ahead of schedule on June 11. The company originally planned to turnaround the catalytic cracking unit in the second quarter as well. However, it was decided, in order to reduce product procurement and turnaround costs, to split the turnaround and to continue to operate the cat cracker. The company plans to turnaround the catalytic cracking unit in September/October.
 Retail margins (service stations, home heat and cardlocks) in Eastern Canada averaged 18.8 cents per gallon in the second quarter, down from the 23.1 cents level in the second quarter of 1992. Service station margins were particularly weak early in the quarter as a result of intense competition. Margins recovered in June and have generally returned to historical levels. Retail sales volumes in Canada averaged 48,700 BPD, down from the 50,900 BPD level in the second quarter of 1992. This decline was principally due to the company's operating with fewer stations in the second quarter of 1993. At June 30, 1993, the company was operating with 90 fewer stations in Canada than a year ago.
 The company recently announced it had selected SHL Systemhouse, Inc., as its computer outsourcing partner. Under the terms of the proposed five-year outsourcing arrangement, the company's data processing operation will be undertaken by Systemhouse beginning Sept. 1, 1993, resulting in significantly lower annual costs and improved efficiencies.
 Commenting on current business conditions, Gaulin said, "The refining and marketing industry continues to be very competitive and we remain focused on strengthening our low-cost operator status."
 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 its 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 Three Months Ended
 June 30, 1993 June 30, 1992
 Pro Forma (A)
 U.S. Canada Total U.S. Canada Total
 FINANCIAL DATA (A)
 Revenues 286,157 296,451 582,608 293,192 353,247 646,439
 Depreciation and
 amortization 4,528 4,522 9,050 4,155 3,356 7,511
 Operating income 15,611 17,259 32,870 19,426 21,991 41,417
 Income before
 income taxes 11,624 9,223 20,847 17,348 13,425 30,773
 Net income 8,024 7,287 15,311 10,774 8,500 19,274
 Net income per
 share .21 .19 .40 .28 .22 .50
 Cash flow from
 operations 15,948 14,212 30,160 18,326 17,633 35,959
 OPERATING DATA
 Three Months Six Months
 ended June 30 ended June 30
 1993 1992 1993 1992
 Wilmington Refinery:
 Throughput (barrels per day) 79,300 80,100 83,600 74,900
 Margin (US $ per barrel) $6.36 $6.95 $6.49 $7.24
 Quebec and Halifax Refineries
 Combined (B):
 Throughput (barrels per day) 82,600 124,200 100,700 125,400
 Margin (US $ per barrel) $4.12 $4.09 $3.97 $3.30
 Retail Marketing:
 California:
 Sales (barrels per day) 36,200 36,200 35,100 35,100
 Overall margin (cents per gallon) 11.4c 8.2c 12.9c 8.7c
 California (company operated only):
 Sales (barrels per day) 18,400 17,900 17,800 17,700
 Fuel margin (cents per gallon) 10.6c 6.9c 13.6c 7.9c
 Eastern Canada:
 Sales (barrels per day) 48,700 50,900 52,800 54,900
 Overall margin (cents per gallon) 18.8c 23.1c 21.1c 26.8c
 (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 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 Quebec refinery averaged 104,800 BPD and 104,700 BPD for the three months and the six months ended June 30, 1992, respectively. For the six months ended June 30, 1993, the Quebec refinery had a throughput of 95,400 BPD.
 -0- 7/22/93
 /CONTACT: Steve Blank of Ultramar, 203-622-7019; or Lissa Perlman of Kekst and Company, 212-593-2655, for Ultramar/
 (ULR)


CO: Ultramar Corporation ST: Connecticut IN: OIL SU: ERN DIV

LG-GK -- NY058 -- 4664 07/22/93 14:45 EDT
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Date:Jul 22, 1993
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