DIAMOND SHAMROCK REPORTS FIRST QUARTER EARNINGS
DIAMOND SHAMROCK REPORTS FIRST QUARTER EARNINGS SAN ANTONIO, April 20 /PRNewswire/ -- Diamond Shamrock, Inc.
(NYSE: DRM) today reported a first quarter loss of $10.8 million or $0.38 per share, compared to earnings of $4.3 million or $0.18 per share for the same period last year. Revenues were $589.8 million, compared to $639.5 million for 1991.
Chairman and CEO Roger Hemminghaus commented on the results: "Falling prices and very weak demand throughout the industry put severe pressure on margins early in the quarter. The drop in oil prices during the quarter caused a devaluation in our inventories that is estimated to have negatively impacted earnings by $12.6 million, pre-tax. "As the quarter progressed, gasoline demand increased, possibly reflecting an improvement in the economy, and margins improved accordingly. By quarter's end net margins were solidly in the black." Hemminghaus noted that Diamond Shamrock has continued to experience market growth. Comparing 1992 first quarter with the comparable period in 1991, total refined product sales volume was up 3.2 percent, retail gasoline volumes were up 11.8 percent, and convenience store merchandise dollar sales increased 29.8 percent. "We have a number of major projects underway for our pipelines and at both refineries that will add significant strength and long-term value to our systems," Hemminghaus said. "Construction of a products pipeline and terminal in Laredo will be completed by the third quarter, and construction of a 240-mile crude oil pipeline from Wichita Falls, Texas to the McKee refinery will be completed before year-end. "We are in the engineering, permitting, and procurement phase for the Three Rivers refinery hydrocracker and expansion, and engineering and site preparation has begun for the McKee refinery coker," he continued. Hemminghaus pointed out that while the industry is having to spend a great deal of capital for environmental projects, the majority of Diamond Shamrock's capital is being spent on economic return projects that either reduce raw material costs or increase overall product value and volume. Despite first quarter results and a large capital budget, the company held its debt to total capital ratio at 47 percent during the quarter by carefully controlling working capital. "With increasing gasoline demand, which is up over one and a half percent year-to-date, along with high industry capacity utilization and industry gasoline inventories below 220 million barrels, we remain optimistic about sales and profitability this summer," he said. Diamond Shamrock, Inc., with annual sales of $2.6 billion, is a regional refiner and marketer of petroleum products. The San Antonio-based corporation has two Texas refineries, markets gasoline through approximately 2,000 Diamond Shamrock branded outlets, manufactures and markets petrochemicals, processes natural gas, and stores and markets natural gas liquids. DIAMOND SHAMROCK, INC. Preliminary Results (Unaudited) (Dollars in millions, except per share) Three Months Ended March 31: 1992 1991 Sales and Operating Revenues $589.8 $639.5 Income (Loss) Before Tax Provision ($ 18.0) 6.7 Net Income (Loss) ($ 10.8) $ 4.3 (A) Primary Earnings (Losses) Per Common Share ($0.38) $0.18 Fully Diluted Earnings (Losses) Per Common Share ($0.38) $0.18 Average Common Shares Outstanding (millions) Primary 28.7 24.5 Fully Diluted 28.7 28.4 (A) Includes a non-recurring gain of $3.3 million (after-tax). -0- 4/20/92 /CONTACT: Kathy Hughes, 512-641-8846, or Bill Strain-investor relations, 512-641-8708, both with Diamond Shamrock/ (DRM) CO: Diamond Shamrock Inc. ST: Texas IN: OIL SU: ERN
TQ -- NY033 -- 9998 04/20/92 11:16 EDT
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|Date:||Apr 20, 1992|
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