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ARCO REPORTS EARNINGS FOR 1993 FIRST QUARTER

 LOS ANGELES, April 26 /PRNewswire/ -- ARCO (NYSE: ARC) reported 1993 first quarter net income of $260 million, or $1.60 per share, compared to a restated 1992 first quarter net loss of $212 million, or $1.31 per share.
 The 1992 first quarter results were restated to reflect the cumulative effect of changes in accounting principles adopted in 1992. Before making these changes, ARCO had reported 1992 first quarter earnings of $180 million, or $1.12 per share.
 Lodwrick M. Cook, ARCO chairman and chief executive officer, said: "We are pleased that ARCO's integrated West Coast operations continued their strong performance. In addition, upstream operations reflected higher crude oil and natural gas prices compared to last year's first quarter, which more than offset reduced crude oil and natural gas volumes."
 After-tax earnings for worldwide oil and gas exploration and production operations were $177 million, up from $108 million in the first quarter of 1992. Improved crude oil and natural gas prices more than offset Lower 48 volume declines which resulted primarily from field declines and producing property sales.
 ARCO's average price for domestic crude oil was $12.31 per barrel in the 1993 first quarter, compared with $10.60 per barrel in the 1992 first quarter. Average domestic natural gas prices were $1.71 per thousand cubic feet, up from $1.31 per thousand cubic feet last year.
 Worldwide exploration expenses totaled $143 million before tax in the 1993 first quarter, compared to $117 million before tax in the 1992 first quarter. The increase primarily reflected higher dryhole expenses.
 Worldwide production of crude oil and natural gas liquids averaged 709,800 barrels per day, down from 767,100 barrels per day in the 1992 first quarter. The decrease reflected both natural field decline and the impact of producing asset sales in the Lower 48.
 Domestic natural gas production was 989 million cubic feet per day, down from 1,332 million cubic feet per day in the first quarter of 1992. International gas volume was 368 million cubic feet per day, up from 349 million cubic feet per day last year. Increased overseas volumes reflected new production from the ARCO-operated Pickerill gas field in the United Kingdom North Sea. Reduced domestic levels were caused by Lower 48 field declines and by the sales of producing properties.
 After-tax earnings from coal operations were $25 million, up from $16 million in 1992's first quarter. The increase resulted from improved performance at the Curragh mine in Australia and higher shipments from ARCO's Black Thunder mine in Wyoming.
 ARCO's refining and marketing segment continued its strong performance with earnings of $93 million in the 1993 first quarter, up from $78 million in the same quarter of 1992. The improved performance reflected higher margins in ARCO's West Coast marketing area.
 Transportation operations contributed after-tax earnings of $53 million, down from $69 million in the 1992 first quarter, and reflected reduce Trans Alaska Pipeline earnings as well as lower marine charter revenues.
 After-tax earnings for the intermediate chemicals and specialty products segment, which reflects ARCO's 83.4 percent interest in ARCO Chemical Co., were $59 million after tax, the same level as in the 1992 first quarter. ARCO Chemical's 1993 first quarter earnings were impacted by sharply lower MTBE prices in Europe which were partially offset by increased sales volumes in propylene oxide and derivatives.
 ARCO earned $7 million from its 49.9 percent equity interest in Lyondell Petrochemical Co. during the 1993 first quarter. This compared to a loss of $7 million from the equity interest in the 1992 first quarter, which reflected substantially lower margins and costs associated with the turnaround and maintenance of refinery units. In the 1993 first quarter, Lyondell changed its method of accounting for facility turnarounds. The net effect to ARCO of this change was a favorable $9 million.
 ARCO's return on stockholders' equity for the 12 months ended March 31, 1993, was 19.4 percent.
 Average common shares outstanding, including equivalents, during the 1993 first quarter were 162.2 million, compared with 160.9 million in the 1992 first quarter.
 ATLANTIC RICHFIELD CO.
 Financial and Statistical Data
 (Millions of Dollars Except Per Share Amounts)
 Three Months Ended
 March 31,
 1993 1992(a)
 Sales and other operating revenues
 (including excise taxes) $4,507 $4,334
 Income before income taxes,
 minority interest and changes
 in accounting principles $442 $338
 Provision for taxes on income (173) (146)
 Minority interest in earnings
 of subsidiary (9) (12)
 Cumulative effect of changes in
 accounting principles --- (392)
 Net income/(loss) $260 ($212)
 Earned/(loss) per share $1.60 ($1.31)(b)
 After-Tax Segment Earnings
 Resources:
 Oil and gas $177 $108
 Coal 25 16
 Products:
 Refining and marketing 93 78
 Transportation 53 69
 Intermediate chemicals and
 specialty products (ARCO Chemical Co.) 59 59
 Equity in earnings (loss) from
 Lyondell Petrochemical Co. 7 (7)
 Unallocated expenses and other (28) (17)
 Interest (126) (126)
 Cumulative effect of changes
 in accounting principles --- (392)
 Net income/(loss) $260 ($212)
 Average common shares outstanding
 including equivalents (millions
 of shares) 162.2 160.9
 Return on average stockholders' equity
 12-month period ended March 31, 1993 -- 19.4 pct.
 12-month period ended March 31, 1992 -- 2.2 pct.(a)
 (a) Restated to reflect changes in accounting principles adopted retroactive to Jan. 1, 1992.
 (b) The adoption of SFAS 106 and SFAS 109 reduced earnings per share by $2.43 per share.
 -0- 4/26/93
 /CONTACT: Albert Greenstein of ARCO, 213-486-3384/
 (ARC)


CO: ARCO ST: California IN: OIL SU: ERN

LS-JL -- LA005 -- 0635 04/26/93 11:24 EDT
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Date:Apr 26, 1993
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