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UNITOR REPORTS RESULTS FOR PERIOD ENDED SEPT. 30, 1992

 UNITOR REPORTS RESULTS FOR PERIOD ENDED SEPT. 30, 1992
 KOLBOTN, Norway, Oct. 30 /PRNewswire/ -- Unitor Ships Service AS


(OTC: 3UNSSY) had income before taxes and minority interest of 31.7 million Norwegian krone ($5.5 million) for the third quarter of 1992, a decline from NOK 37.7 million in the prior year. Earnings per share were NOK 1.37 ($0.24) as compared with NOK 1.73 last year, reflecting a 26-percent tax rate in 1992 compared with a 22-percent tax rate in 1991, Karsten Houm, managing director, announced today.
 Revenues slipped to NOK 333.6 million ($57.5 million) from the NOK 363.4 million last year.
 "Almost half of the decline in revenue, as much as NOK 15 million ($2.6 million), occurred because of the sharp decline in the U.S. dollar exchange rate. The remainder was attributable to the overall slowdown in the shipping industry, the result of the uncertain economic conditions in the international maritime market," Houm said.
 "Despite the decline in results for the three months, we remain encouraged by the strength of our products as demonstrated by the increase in their market share. Unitor has been less affected than most of our principal competitors and the shipping industry in general, largely because much of our product base is essential to shipping operations," he added.
 "Short term, we expect the international shipping market to continue its uncertain course. We therefore have implemented further cost- control measures which should make it possible to achieve a healthy level of profits, even if revenues continue to decline. We would expect to see the full effect of these controls during the first quarter of 1993," Houm said.
 Nine-Month Results
 For the first nine months of 1992, revenues were NOK 1.07 billion ($183.8 million), up from NOK 1.05 billion a year ago. Income before taxes and minority interest declined to NOK 104.5 million ($18.0 million) from NOK 105.6 million in the comparable period a year ago. Operating income for the period was NOK 86.0 million ($14.8 million) compared with NOK 117.2 million for the first nine months of 1991.
 Earnings per share were NOK 4.51 ($0.78) as compared with NOK 4.96 for the same period a year ago.
 According to Houm, the decline in operating income for the nine months was largely due to a cost structure that was too high, having been predicated on considerably greater sales activity than exists in the current market. This contributed to the substantially lower margins, especially in the first six months of 1992. Also contributing to the decline were changes in Unitor's product mix and increased competitive pressures which further reduced profit margins. And, finally, NOK 16 million ($2.8 million) of the NOK 31 million ($5.3 million) decline reflects lower U.S. dollar exchange rates this year over last.
 Net interest and other financial item for the nine months amounted to a profit of NOK 18.5 million ($3.2 million) as compared with a charge of NOK 11.6 million during the same period last year. The difference of NOK 30 million ($5.2 million) is mainly due to a NOK 20 million ($3.4 million) profit in currency hedging compared to a loss of NOK 14 million last year, Houm said.
 Unitor supplies high-quality chemicals and related equipment to the international merchant marine fleet of over 23,000 vessels.
 The company has been listed on the Oslo Stock Exchange since 1978. Unitor American Depository Receipts (ADRs) began trading in the United States in April 1991. They are traded over-the-counter, under the symbol 3UNSSY, and are quoted in the daily "pink sheets." Morgan Guaranty Trust Company of New York is the sole depository of the ADRs.
 Currency exchange rate: US$1.00 equals NOK 5.803.
 NOK -- Norwegian Krone.
 UNITOR SHIPS SERVICE
 Consolidated Statement of Operations
 (In millions, unaudited)
 Three months ended 1992 1991 Pct.
 Sept. 30 NOK US$ NOK Change
 Operating revenues 333.6 $57.5 363.4 -8.2
 Cost of goods 159.2 27.4 165.7 -3.9
 Gross profit 174.4 30.1 197.7 -11.8
 Depreciation 14.3 2.5 10.6 35.0
 Other operating expenses 139.0 24.0 143.8 -3.3
 Operating income 21.1 3.6 43.3 -51.3
 Net interest and other
 financial expenses (income) (10.6) (1.8) 5.6 n/a
 Income before taxes
 and minority interest 31.7 5.5 37.7 -15.9
 Minority interest 0.0 0.0 0.0 n/a
 Income after minority
 interest 31.7 5.5 37.7 -15.9
 Income taxes 8.3 1.4 8.3 -0.4
 Net income 23.4 4.0 29.4 -20.3
 Earnings per share 1.37 $0.24 1.73 -20.8
 Weighted average number
 of shares outstanding 17.2 17.2 17.0
 Nine months ended 1992 1991 Pct.
 Sept. 30 NOK US$ NOK Change
 Operating revenues 1,066.6 $183.8 1,051.0 1.5
 Cost of goods 497.8 85.8 479.3 3.9
 Gross profit 568.8 98.0 571.7 -0.5
 Depreciation 43.5 7.5 38.3 13.6
 Other operating expenses 439.3 75.7 416.2 5.6
 Operating income 86.0 14.8 117.2 -26.7
 Net interest and other
 financial expenses (income) (18.5) (3.2) 11.6 n/a
 Income before taxes
 and minority interest 104.5 18.0 105.6 -1.1
 Minority interest 0.0 0.0 0.8 n/a
 Income after minority
 interest 104.5 18.0 106.4 -1.8
 Income taxes 27.2 4.7 22.0 23.2
 Net income 77.3 13.3 84.4 -8.4
 Earnings per share 4.51 $0.78 4.96 -9.1
 Weighted average number
 of shares outstanding 17.2 17.2 17.0
 Currency translation rate: NOK 5.803 equals $1.00.
 -0- 10/30/92
 /CONTACT: Philip L. Thomas of The P.L. Thomas Group, in Chicago, 312-906-9060, for Unitor/
 (3UNSSY) CO: Unitor Ships Service ST: IN: MAR SU: ERN


GK-OS -- NY013 -- 7007 10/30/92 09:35 EST
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Date:Oct 30, 1992
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