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ALBERTA NATURAL GAS COMPANY LTD ANNOUNCES RESULTS

       ALBERTA NATURAL GAS COMPANY LTD ANNOUNCES RESULTS
    CALGARY, Alberta, Nov. 8 /PRNewswire/ -- Alberta Natural Gas Company Ltd. (Toronto, Montral, Vancouver, Alberta: ANG) (ANG) today announced that consolidated income from continuing operations for the nine months ended Sept. 30, 1991 was $3.9 million or $0.18 per share, compared to $16.9 million or $0.80 per share for the same period in 1990.  Consolidated income from continuing operations for the third quarter of 1991 was $0.15 million, compared with $6.1 million for the third quarter of 1990.
    The decline in earnings mainly was due to the continuing poor results from the chemical business.  Operating results from the fine chemicals business in Ireland reflect a continued decline in sales volumes mainly due to reduced business from a major customer and the failure of expected business to materialize.  Reduced earnings in the nitroparaffins business were a direct result of the fire and explosion that occurred on May 1, 1991, at the Sterlington, La. nitroparaffin plant owned by ANGUS Chemical Company, a wholly owned subsidiary of ANG.  Idle plant costs and shortages in supply resulted in lower sales volumes and margins.
    The "fast track" rebuilding program for the nitroparaffin basics production facilities is on schedule. Partial production from the rebuilt plant is expected around the first of the year, and full production in mid-1992.  Business interruption insurance is in place until the facility is refurbished.  The company is recording a conservative estimate of the business interruption insurance proceeds that may be available, until final negotiations with the insurance carrier are completed.  A final settlement will be made after the conclusion of the period of business interruption.
    The hydrocarbons business continued to make a positive contribution to earnings. However, earnings have declined slightly compared to results in 1990.  For the most part, this was due to the natural gas liquids marketing activity which experienced lower average sales prices and volumes compared to the same period last year.  This was partially offset by higher earnings in natural gas marketing due to a marked improvement in sales volumes and margins.
    Net income after discontinued operations for the first nine months of 1991 amounted to a loss of $52.5 million or $2.50 per share compared to net income of $16.9 million or $0.80 per share for the same period in 1990.  Discontinued operations reflect ANG's decision, made in the first quarter, to cease funding the magnesium project.
    ANG is a Calgary based company operating in hydrocarbons and specialty chemicals. ANG common shares are listed on Toronto, Montreal, Vancouver and Alberta Exchanges and trade under the symbol ANG.
                       ALBERTA NATURAL GAS CO.
                        Financial Highlights
                       (thousands of dollars)
    The following is an unaudited earnings statement for the three and nine months ended Sept. 30, 1991 compared with the same periods during 1990.
                           Nine months ended       Three months ended
                                Sept. 30                Sept. 30
                            1991       1990         1991        1990
                                  (Restated)               (Restated)
    Operating revenues   $363,328   $274,267     $109,696    $88,599
    Operating expenses    338,048    234,627      103,113     74,668
    Operating income       25,280     39,640        6,583     13,931
    Other income            3,160      2,396        1,105        691
    Total                  28,440     42,036        7,688     14,622
    Interest and other
      income deductions    15,757     12,500        5,995      4,644
    Total                  12,683     29,536        1,693      9,978
    Provision for income
      taxes                 8,206     12,633        1,452      3,866
    Minority interest       (495)       ---          (91)        ---
    Income from continuing
      operations            3,982     16,903          150      6,112
    Discontinued
     operations           (56,499)        38          ---       (118)
    Net Income           ($52,517)   $16,941         $150     $5,994
    Earnings per share
      From continuing
         operations         $0.18      $0.80        $0.00      $0.29
      Net income           ($2.50)     $0.80        $0.00      $0.29
    The following is an unaudited summary of operating income by business segment for the three and nine months ended Sept. 30, 1991 compared with the same periods during 1990.
                           Nine months ended       Three Months ended
                               Sept. 30                 Sept. 30
                            1991        1990        1991        1990
                                    (Restated)             (Restated)
    Hydrocarbon business
     Natural gas
      processing          $20,935    $24,646       $5,803     $7,635
     Pipelines              3,503      3,271        1,191      1,156
     Natural gas marketing  4,381      1,803          727        815
     Total                 28,819     29,720        7,721      9,606
    Chemical business
      Nitroparaffins       12,686     18,422        3,306      7,807
      Fine chemicals       (9,395)    (1,793)      (2,263)      (973)
      Total                 3,291     16,629        1,043      6,834
    Corporate & Other
      expenses            (6,830)    (6,709)      (2,181)     (2,509)
    Operating income      $25,280    $39,640       $6,583    $13,931
    -0-                           11/8/91
    /CONTACT:  W.J. Demcoe, Alberta Natural Gas Company Ltd., 403-691-7777/
    (ANG.) CO:  Alberta Natural Gas Company Ltd ST:  Alberta IN:  OIL SU:  ERN EH -- LA018 -- 2780 11/08/91 18:21 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 8, 1991
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