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ARCO REPORTS SECOND QUARTER, FIRST-HALF EARNINGS FOR 1992

 ARCO REPORTS SECOND QUARTER, FIRST-HALF EARNINGS FOR 1992
 (Repeating to fix garble in the sixth paragraph)
 LOS ANGELES, July 27 /PRNewswire/ -- ARCO (NYSE: ARC) today reported 1992 second quarter net income of $309 million, or $1.91 per share. For the 1991 second quarter, ARCO earned $246 million, or $1.51 per share.
 For the first six months of 1992, ARCO's earnings totaled $489 million, or $3.03 per share, compared with the 1991 first half earnings of $597 million, or $3.68 per share.
 "ARCO's improved second-quarter earnings primarily reflect the strength of our West Coast refining and marketing," said Lodwrick M. Cook, ARCO chairman and chief executive officer. "We were also helped by the upward movement in crude oil and natural gas prices."
 Included in 1992 second-quarter results was a net benefit of approximately $65 million after tax which reflected the recognition of a previously deferred portion of the gain from the 1989 sale of a majority interest in Lyondell Petrochemical Co. (in which ARCO holds a 49.9 percent equity interest). The recognition follows Lyondell's early retirement, in April 1992, of ARCO-guaranteed debt associated with Lyondell's olefins manufacturing facilities. The gain was partially offset by the ARCO share of charges resulting from the decision by ARCO Chemical Co. (in which ARCO holds a 83.4 percent interest) to withdraw from the Yukong Chemical Ltd. joint venture in South Korea and by provisions for ARCO's future environmental remediation costs. In the same quarter last year, ARCO had a favorable $37 million tax adjustment in refining and marketing related to Brazilian operations and an $8 million gain on the sale of certain coal assets.
 After-tax earnings for ARCO's worldwide oil and gas exploration and production operations totaled $143 million in the 1992 second quarter, compared with $163 million in the 1991 second quarter. The decline reflected reduced production of liquids and natural gas, higher exploration expenses and reduced production cost recovery in Turkey, partially offset by higher crude oil and natural gas prices.
 The average price for domestic crude oil in the quarter was $13.31 per barrel, up from $12.67 per barrel in last year's second quarter. Average domestic natural gas prices were $1.47 per thousand cubic feet, up from $1.38 per thousand cubic feet last year.
 Worldwide exploration expenses totaled $150 million, compared with $128 million in the 1991 second quarter, reflecting higher dry hole costs, primarily in Alaska.
 ARCO's worldwide production of crude oil and natural gas liquids averaged 737,100 barrels per day in the 1992 second quarter vs. 746,300 barrels per day in the same 1991 period. Domestic volumes were down 16,500 barrels per day largely due to declines in the Lower 48. ARCO's international volumes, however, were up 7,300 barrels per day as a result of increased production in both the United Kingdom and Indonesia.
 Domestic natural gas production was 1,203 million cubic feet per day, down from 1,359 million cubic feet per day in the 1991 second quarter. Volumes were impacted by natural field decline and property sales. Reflecting timing of contractual North Sea gas sales and natural field declines, ARCO's foreign gas production was 167 million cubic feet per day in the 1992 second quarter, compared with 241 million cubic feet per day last year.
 ARCO's coal operations earned $20 million after tax for the 1992 second quarter, compared with $24 million in the same period last year, when operations benefited from an $8 million gain on asset sales.
 Refining and marketing earnings were $103 million after tax compared with $85 million after tax in the 1991 second quarter. Both sales volumes and product margins were favorable to the prior year. As previously stated, the 1991 second quarter included a favorable $37 million tax adjustment related to Brazilian operations.
 Earnings for ARCO's transportation operations totaled $59 million after tax for the quarter, compared with $60 million for last year's second quarter.
 The intermediate chemicals and specialty products segment, which reflects ARCO's interest in ARCO Chemical Co., had after-tax earnings of $24 million, compared with $36 million after tax in last years's second quarter. Higher margins for Propylene oxide and MTBE and growth in overall sales volumes improved operating income for the quarter although net results were offset by ARCO's share of a $56 million one-time charge associated with divesting ARCO Chemical's equity interest in the South Korean joint venture. In the 1991 second quarter, ARCO Chemical's earnings included a pre-tax benefit of approximately $12 million resulting from a reduction in previously estimated costs related to the 1990 accident at its Channelview, Texas, plant.
 ARCO earned $6 million in the 1992 second quarter from its equity interest in Lyondell Petrochemical Co., down from $34 million in the 1991 second quarter. Lyondell's 1992 second quarter results were reduced in both its refining and petrochemical businesses which reflected industrywide trends as a result of higher crude oil costs and lower ethylene prices.
 Sales and other operating revenues totaled $4.5 billion in the 1992 second quarter, compared with $4.3 billion in the 1991 second quarter. For the first six months of 1992, ARCO's sales and other operating revenues totaled $8.8 billion, compared with $9.0 billion in the same 1991 period.
 Return on stockholders' equity for the 12 months ended June 30, 1992, was 8.6 percent.
 ATLANTIC RICHFIELD CO.
 Financial and Statistical Data
 (Millions of Dollars Except Per Share Amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Sales & other
 operating revenues
 (including excise
 taxes) $4,521 $4,257 $8,848 $8,953
 Income before income
 taxes and minority
 interest $549 $362 $887 $926
 Provision for taxes
 on income (237) (110) (383) (315)
 Minority interest in
 earnings of
 subsidiary (3) (6) (15) (14)
 Net income $309 $246 $489 $597
 Earned per share $1.91 $1.51 $3.03 $3.68
 After-tax segment
 earnings
 Resources:
 Oil and gas $143 $163 $251 $424
 Coal 20 24 36 47
 Products:
 Refining and
 marketing 103 85 181 159
 Transportation 59 60 128 131
 Intermediate chemicals
 & specialty products
 (ARCO Chemical Co.) 24 36 83 88
 Equity in earnings
 from Lyondell
 Petrochemical Co. 6 34 (1) 84
 Unallocated expenses
 and other
 operations 90 (4) 73 (20)
 Interest (136) (152) (262) (316)
 Net income $309 $246 $489 $597
 Average common shares
 outstanding including
 equivalents (millions
 of shares) 161.2 162.0 161.1 162.1
 Return on stockholders' equity
 Twelve-month period ended June 30, 1992 - 8.6 percent
 Twelve-month period ended June 30, 1991 - 23.4 percent
 -0- 7/27/92 R
 /CONTACT: Albert Greenstein of ARCO, 213-486-3384/
 (ARC) CO: ARCO ST: California IN: OIL SU: ERN


KJ-EH -- LA005 -- 3592 07/27/92 14:27 EDT
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Date:Jul 27, 1992
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