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COASTAL'S SECOND QUARTER RESULTS INCREASE

 HOUSTON, July 27 /PRNewswire/ -- The Coastal Corporation (NYSE: CGP) reported today that net earnings increased to $26.3 million or 23 cents per share for the second quarter ended June 30, rising to $51.3 million or 47 cents per share for the six-month period.
 This compared to net earnings of $12.1 million or 11 cents per share for the 1992 second quarter and net earnings of $6.1 million or 6 cents per share for the six-month period last year.
 The second-quarter results reported today included a one-time extraordinary charge amounting to 2 cents per share for early redemption of high-cost debt.
 "We have continued to strengthen our balance sheet, including reducing debt by $400 million so far this year. This has also strengthened our earnings by lowering interest expense," said Oscar S. Wyatt Jr., chairman, president and chief executive officer.
 "Meanwhile, our restructuring of the refining and marketing segment has begun to take hold, as results climbed for the second consecutive quarter despite a difficult environment.
 "Coastal's natural gas group turned in another solid performance. Exploration and production performed in line with our expectations, nearly doubling its profit when compared with the corresponding period in 1992. And our coal business continued its steady growth."
 Operating profit increased to $143 million for the quarter, up from $136.8 million last year, and to $297.6 for the six months, up from $243.2 million last year.
 On a segment basis, operating profit for natural gas, Coastal's largest profit contributor, was $94 million in the second quarter compared with $90.5 million last year. Six-month operating profit was $216.9 million, compared with $226.1 million for the six-month period a year earlier. Total throughput volumes for Coastal's natural gas pipelines amounted to 1,030.5 billion cubic feet for the first six months, compared with 991.5 billion cubic feet for the same period a year ago.
 Refining and marketing posted an operating profit of $15.5 million for the quarter, compared with a $1.7 million operating profit for the first quarter and $21.4 million for the second quarter a year earlier. For the six months, refining and marketing posted a $17.2 million operating profit compared with a $29.1 million loss for the six months in the prior year. Sales of refined products for the six months, including products purchased from others, averaged 827,000 barrels per day, compared with 866,000 barrels per day a year ago.
 Exploration and production showed a $10.2 million operating profit for the second quarter, up from $5.6 million for the second quarter last year. Six-month operating profit was $20.5 million, up from $10.4 million for the comparable period in 1992. Average production of natural gas for the six months of 210.1 million cubic feet per day was up from 109.9 million cubic feet per day a year ago. The rise in natural gas production volumes is due to increased deliverability from successful drilling activities and improved prices, which allowed the company to resume sales of natural gas which had been shut in during the year-earlier period because of unacceptably low prices. Net production of crude oil and condensate for the six months averaged 12,245 barrels daily, compared with 11,202 barrels a day for the same period in 1992.
 The coal segment's operating profit for the quarter was $24.8 million, up from $24.1 million for the corresponding quarter a year earlier. For the six months, Coal posted operating profit of $47.9 million, compared with $46 million during the corresponding period in 1992. Increased volumes compensated for slightly lower prices during the six months as production from the company's own facilities climbed to 7.4 million tons, compared with 7.1 million tons for the same period a year earlier.
 The Coastal Corporation is a Houston-based energy holding company. Coastal has consolidated assets of more than $10 billion and subsidiary operations in natural gas marketing, transmission and storage, refining and marketing, oil and gas exploration and production, coal, chemicals, trucking and independent power production.
 THE COASTAL CORPORATION AND SUBSIDIARIES
 (In millions except per share)
 Periods ended Three months Six months
 June 30 1993 1992(A) 1993 1992(A)
 (Restated) (Restated)
 Operating revenues $2,631.9 $2,398.6 $5,279.0 $4,934.7
 Operating costs and expenses
 Purchases 1,949.0 1,734.1 3,917.6 3,642.1
 Operating expenses 452.4 435.4 886.7 866.5
 Depreciation, depletion
 and amortization 87.5 92.3 177.1 182.9
 Total $2,488.9 $2,261.8 $4,981.4 $4,691.5
 Operating profit 143.0 136.8 297.6 243.2
 Other income - net 20.8 13.4 39.9 29.7
 Other expenses
 General and administrative 12.5 12.1 25.4 24.4
 Interest and debt expense 110.7 119.0 232.3 237.8
 Taxes on income 11.8 7.0 26.0 4.6
 Total 135.0 138.1 283.7 266.8
 Earnings before
 extraordinary item 28.8 12.1 53.8 6.1
 Extraordinary item(B) (2.5) -- (2.5) --
 Net earnings 26.3 12.1 51.3 6.1
 Dividends on preferred stock 2.5 .1 2.6 .2
 Net earnings available to
 common stockholders 23.8 12.0 48.7 5.9
 Earnings per share
 Before extraordinary item $.25 $.11 $.49 $.06
 Extraordinary item (.02) -- (.02) --
 Net .23 .11 .47 .06
 Average common and common
 equivalent shares 104.7 104.5 104.6 104.4
 Operating profit (loss) by segment
 Natural gas $94.0 $90.5 $216.9 $226.1
 Refining and marketing 15.5 21.4 17.2 (29.1)
 Exploration and production 10.2 5.6 20.5 10.4
 Coal 24.8 24.1 47.9 46.0
 Other (1.5) (4.8) (4.9) (10.2)
 Total $143.0 $136.8 $297.6 $243.2
 (A) -- Restated in accordance with previously announced accounting changes.
 (B) -- Represents charges related to early extinguishment of debt.
 -0- 7/27/93
 /CONTACT: Steve Eames of Coastal, 713-877-6733/
 (CGP)


CO: The Coastal Corporation ST: Texas IN: OIL SU: ERN

CK-TS -- NY020 -- 6143 07/27/93 10:28 EDT
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Date:Jul 27, 1993
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