Printer Friendly

ALBERTA NATURAL GAS COMPANY LTD ANNOUNCES YEAR END RESULTS

 ALBERTA NATURAL GAS COMPANY LTD ANNOUNCES YEAR END RESULTS
 CALGARY, Feb. 10 /PRNewswire/ -- Alberta Natural Gas Company Ltd (ANG) announced today that consolidated income from continuing operations for the year ended Dec. 31, 1991, was $7.2 million on revenue of $481.0 million or $0.34 per share after deducting an "unusual item" of $7.4 million or $0.22 per share net of tax.
 The "unusual item" relates to the May 1, 1991, Sterlington, La., nitroparaffin plant explosion. The comparable results for 1990 were $29.5


million on revenue of $376.8 million or $1.39 per share. The decline is mainly attributable to results in the chemical business which were impacted by the Sterlington explosion and the performance of the fine chemicals business in Ireland. Income from the hydrocarbons business remained consistently strong in 1991.
 Operating income from nitroparaffins before deducting the "unusual item" was $16.6 million in 1991, compared to $26.8 million in 1990. Income was affected by lower sales resulting from the Sterlington explosion. This was partially offset by business interruption insurance. Increased selling, administration and research costs also contributed to the nitroparaffins operating income reduction. The "unusual" deduction of $7.4 million resulted from unabsorbed plant costs at Sterlington. Due to the loss of nitroparaffin production capacity in 1991, certain fixed production costs were expensed as incurred although these costs are normally inventoriable costs.
 The Sterlington plant is expected to begin partial production in the first quarter of 1992 and achieve full production by the middle of the year. Business interruption insurance is in place until the facility is rebuilt. To date, more than US $80 million in advances and partial settlements have been received from the insurers. Final insurance settlement is not expected until the second half of 1992.
 Operating income from the fine chemicals business declined $5.3 million in 1991 from the previous year. This was due to the failure to generate new business as planned and to the loss of business from a major customer. Investment advisors have been retained to assist ANG in determining ways to maximize the value of this business.
 The hydrocarbons business contributed $41.9 million to operating income compared to $41.7 million in 1990. It made a strong contribution to overall results and continues to provide ANG with a solid financial base.
 Discontinued operations for 1991, amounting to a loss of $49.3 million net of tax or $2.34 per share, reflect the decision in April 1991, to discontinue ANG's participation in the magnesium project at High River, Alberta. Extraordinary items, amounting to a net after tax loss of $2.5 million or $0.12 per share, reflect the extraordinary and non-recurring book consequences to ANG of the nitroparaffin plant explosion. Based upon the proceeds received to date relating to the property damage claim, a net of tax gain of $2.5 million has been recorded. A $5 million net of tax charge offsets this gain and represents non-reimbursable expenses and insurance deductibles relating to the explosion. A further gain is expected to be recorded in 1992 upon final settlement with the insurers.
 The consolidated net loss was $44.6 million or $2.12 per share for the year ended Dec. 31, 1991, compared to consolidated net income of $25.7 million or $1.21 per share for the previous year.
 Consolidated income from continuing operations for the fourth quarter was $3.2 million on revenue of $117.6 million or $0.15 per share, compared with $12.6 million on revenue of $102.5 million or $0.59 per share during the same period in 1990.
 ANG operates 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 COMPANY LTD
 FINANCIAL HIGHLIGHTS
 Condensed Statement of Income
 (Unaudited, in thousands, except earnings per share)
 Twelve months Three months
 ended Dec. 31 ended Dec. 31
 1991 1990(A) 1991 1990(A)
 Operating revenue $480,966 $376,816 $117,638 $102,549
 Operating expenses 436,734 316,433 98,686 81,806
 Operating income
 before unusual item 44,232 60,383 18,952 20,743
 Unusual item - unabsorbed
 plant costs (7,428) (7,428)
 Operating income 36,804 60,383 11,524 20,743
 Equity income 1,275 1,520 648 2,102
 Interest & other income 2,470 4,258 432 1,280
 Interest expenses (20,976) (17,603) (5,219) (5,103)
 19,573 48,558 7,385 19,022
 Provision for income
 taxes (12,375) (19,046) (4,169) (6,413)
 Income from continuing
 operations 7,198 29,512 3,216 12,609
 Discontinued
 operations (49,328) (3,784) 7,171 (3,822)
 Extraordinary items (2,490) (2,490)
 Net (loss) income $(44,620) $25,728 $7,897 $8,787
 Earnings per share
 Continuing operations (after deducting
 an unusual item of $0.22 per share net
 of tax in 1991) $0.34 $1.39 $0.15 $0.59
 Discontinued
 operations (2.34) (0.18) 0.35 (0.18)
 Extraordinary items (0.12) (0.12)
 Net (loss) income $(2.12) $1.21 $0.38 $0.41
 (A) Restated for discontinued operations.
 ALBERTA NATURAL GAS COMPANY LTD
 FINANCIAL HIGHLIGHTS
 Operating Income by Business Areas
 (Unaudited, in thousands of dollars)
 Twelve months ended Three months ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 (restated) (restated)
 Hydrocarbon business
 Natural gas
 processing $31,967 $35,356 $11,032 $10,710
 Pipelines 5,098 4,462 1,595 1,191
 NGL and Natural
 gas marketing 4,840 1,905 459 102
 41,905 41,723 13,086 12,003
 Chemical business
 Nitroparaffins 16,565 26,752 3,879 8,330
 Fine chemicals (5,108) 239 4,287 2,032
 11,457 26,991 8,166 10,362
 Corporate & other
 expenses (9,130) (8,331) (2,300) (1,622)
 Operating income before
 unusual item $44,232 $60,383 $18,952 $20,743
 -0- 02/10/92
 /CONTACT: W.J. Demcoe of Alberta Natural Gas Company, 403-691-7777/
 (ANG.) CO: Alberta Natural Gas Company Ltd ST: Alberta IN: OIL SU: ERN


PS -- NY098 -- 8556 02/10/92 20:07 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 10, 1992
Words:1027
Previous Article:NORTHBAY FINANCIAL PAYS DIVIDEND
Next Article:CITADEL HOLDING CORP. ANNOUNCES RESULTS
Topics:


Related Articles
PRAIRIE OIL ROYALTIES COMPANY, LTD. ANNOUNCES NINE MONTHS RESULTS
SCURRY-RAINBOW OIL LTD. REPORTS YEAR-END RESULTS
PRAIRIE OIL ROYALTIES COMPANY LTD. ANNOUNCES RESULTS
NORTH CANADIAN ANNOUNCES FIRST QUARTER RESULTS
SCURRY-RAINBOW OIL LIMITED ANNOUNCES RESULTS
PRAIRIE OIL ANNOUNCES CONTINUED STRONG PERFORMANCE
ALBERTA NATURAL GAS CO. LTD. ANNOUNCES RESULTS
NORTH CANADIAN ANNOUNCES 1992 RESULTS
PRAIRIE OIL ROYALTIES COMPANY LTD. ANNOUNCES RESULTS
CANADIAN NATURAL RESOURCES LTD. ANNOUNCES 1994 FIRST QUARTER RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters