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GULF SIX-MONTH RESULTS REFLECT INCREASED LIQUIDS PRODUCTION

 GULF SIX-MONTH RESULTS REFLECT INCREASED LIQUIDS PRODUCTION
 CALGARY, Alberta, Aug. 5 /PRNewswire/ -- Gulf Canada Resources Ltd's (AMEX: GOU; Toronto, Montreal, Vancouver: GOU) production of crude oil and natural gas liquids increased in the first six months of 1992 to 94,500 barrels per day, compared with 92,100 barrels per day for the first half of 1991.
 The increase reflects ongoing productivity improvements at existing fields, which resulted in an increase in conventional Canadian crude oil production to 44,700 barrels per day in 1992, compared with 42,100 barrels per day in the first half of 1991. It also reflects increased production of synthetic crude oil from Syncrude, and production of 2,200 barrels per day from the KomiArcticOil joint venture in Russia, which began operations at year-end 1991 and surpassed the 1-million-barrel sales level in the first half of 1992. Total gross production of crude oil and natural gas liquids for the second quarter of 1992 was 94,500 barrels per day compared with 89,800 barrels per day a year ago.
 Gulf's first half natural gas production was 332 million cubic feet per day compared with 357 million cubic feet per day last year. Production from core properties in Western Canada increased, but there was an overall decline due to the sale in the latter part of 1991 of producing properties which accounted for approximately
70 million cubic feet per day of production. Second quarter 1992 production averaged 325 million cubic feet per day compared with 320 million cubic feet per day a year ago.
 On Aug. 1, the drilling unit Kulluk and two ice-breaking support vessels began the move to the U.S. Beaufort Sea to drill ARCO Alaska's Kuvlum prospect. The well is scheduled to start later this month.
 As a result of anticipated reassessments, Gulf will receive approximately $60 million in income tax refunds and related interest applicable to the years 1974 to 1992. The amounts will be recorded in the third quarter, and the funds will be used to reduce net financing.
 Gulf's revenues dropped in the first half of 1992 due to substantially lower prices, which are being experienced throughout the oil and gas industry. However, the decline was mostly offset by higher liquids volumes and lower expenses. Excluding gains on asset sales, Gulf's first half and second quarter earnings (loss) results from continuing operations were little changed from the comparable periods a year ago.
 Expenses were $389 million in the first half of 1992, a reduction of $88 million from the same period in 1991. The decrease was the result of lower general and administrative, exploration and contract drilling expenses, and lower depreciation, depletion and amortization.
 Gulf had a loss from continuing operations of $18 million for the first six months of 1992, compared with earnings of $51 million for the same period in 1991. The difference is primarily attributable to an after-tax gain of approximately $60 million in 1991 on the sale of the company's working interest in the Caroline field. The loss from continuing operations in the second quarter of 1992 was $15 million compared with earnings of $49 million for the same period in 1991, largely for the same reason.
 Including discontinued operations, the loss for the first half was $43 million compared with earnings of $47 million for the first half of 1991. Discontinued operations for 1992 include a second quarter charge of $22 million which reduced the carrying value of Gulf's investment in Asamera Minerals Inc. The corresponding loss in the second quarter of 1992 was $39 million compared with earnings of $47 million a year ago.
 Cash generated from continuing operations was $121 million in the first half of 1992 compared with $175 million in the first half of 1991, as a result of the lower net oil and gas revenues and higher finance charges, partially offset by lower general and administrative expenses. Cash generated in the second quarter of 1992 was $55 million compared with $77 million a year ago.
 GULF CANADA RESOURCES
 Consolidated Statements of Earnings (loss)
 (millions of dollars except per share amounts)
 (Unaudited)
 Three months ended Six months ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenues
 Net oil and gas $181 $191 $344 $399
 Net gain (loss) on
 asset disposals (4) 100 (6) 94
 Other 15 17 33 35
 Total 192 308 371 528
 Expenses
 Operating - production 87 88 165 165
 -Contract drilling 14 18 28 35
 Exploration 13 15 25 42
 General and
 administrative 17 21 33 50
 Depreciation, depletion
 and amortization 54 54 100 107
 Finance charges, net 25 9 30 13
 Income tax expense
 (recovery) (a) (3) 54 8 65
 Total 207 259 389 477
 Earnings (loss) from
 continuing operations (15) 49 (18) 51
 Discontinued operations (24) (2) (25) (4)
 Earnings (loss) for the
 period ($39) $47 ($43) $47
 Per Ordinary Share (b)
 Earnings (loss) from
 continuing
 operations ($0.16) $0.18 ($0.25) $0.05
 Earnings (loss) ($0.31) $0.17 ($0.41) $0.02
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Operating Activities
 Cash generated from
 continuing
 operations $55 $77 $121 $175
 Deferred production
 revenue (16) (2) (35) (10)
 Other, net (2) (15) (16) 65
 Total 37 60 70 230
 Investing activities (71) 304 (132) 226
 Dividends (16) (38) (30) (77)
 Financing Activities (17) 640 (30) 596
 Increase (decrease)
 in cash (67) 966 (122) 975
 Cash at beginning of
 period 803 9 858 0
 Cash at end of
 period(d) $736 $975 $736 $975
 (d) Comprises cash and short-term investments
 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
 (millions of dollars)
 June 30, 1992 Dec. 31, 1991
 (Unaudited)
 Assets
 Current
 Cash and short-term investments $736 $858
 Accounts receivable 115 122
 Other 97 90
 Total 948 1,070
 Investments, other assets and
 deferred charges 401 372
 Property, plant and equipment 2,492 2,484
 Total $3,841 $3,926
 Liabilities and Shareholders'
 Equity
 Current
 Short-term loans $244 $249
 Accounts payable 107 130
 Hibernia withdrawal costs 80 80
 Current portion of long-term debt 51 49
 Current portion of deferred revenue 38 56
 Other 77 82
 Total 597 646
 Long-term debt 1,506 1,478
 Other long-term liabilities 54 68
 Deferred income taxes 208 210
 Total 2,365 2,402
 Shareholders' Equity
 Share Capital
 Senior preference shares 577 577
 Ordinary shares 1,516 1,492
 Deficit (603) (520)
 Foreign currency translation
 adjustment (14) (25)
 Sub-total 1,476 1,524
 Total $3,841 $3,926
 Notes to Consolidated Financial Statements
 a) Income tax expense (recovery) includes deferred income taxes of ($6 million) and $50 million for the three-month periods ended June 30, 1992 and 1991, respectively, and $nil and $54 million for the six-month periods ended June 30, 1992 and 1991, respectively.
 b) Earnings (loss) per ordinary share is calculated after deduction of cumulative preference share dividends of $12 million and $21 million for the three-month periods ended June 30, 1992 and 1991, respectively, and $24 million and $44 million for the six-month periods ended June 30, 1992 and 1991, respectively.
 c) Certain amounts and volumes for the three- and six-month periods ended June 30, 1991, have been reclassified to conform with the presentation adopted for 1992.
 Supplementary Information
 Three months Six months
 ended June 30, ended June 30,
 1992 1991 1992 1991
 Volumes produced
 Crude oil
 (thousands of barrels per
 day)
 Canada - conventional 43.1 41.4 44.7 42.1
 - synthetic 15.0 12.8 15.4 13.5
 Indonesia 14.9 17.0 14.9 17.2
 Russia 2.6 --- 2.2 ---
 Total 75.6 71.2 77.2 72.8
 Natural gas liquids
 (thousands of barrels
 per day) 18.9 18.6 17.3 19.3
 Total liquids
 (thousands of barrels
 per day) 94.5 89.8 94.5 92.1
 Natural gas
 (millions of cubic feet
 per day) 325.1 319.6 332.2 356.6
 Volumes produced and sold (e)
 Total liquids
 (thousands of barrels
 per day) 95.7 85.8 91.5 86.3
 Natural gas
 (millions of cubic feet
 per day) 300.0 295.2 310.9 343.7
 (e) Excludes reinjection requirements and includes inventory changes.
 Gross Average Prices
 Crude Oil (dollars per barrel)
 Canada - conventional $21.87 $25.85 $20.99 $26.33
 - synthetic 23.03 22.25 21.73 23.06
 Indonesia 22.13 20.33 21.51 22.60
 Russia 18.55 -- 18.46 ---
 Natural gas liquids
 (dollars per barrel) 15.27 14.81 15.33 16.94
 Average liquids prices
 (dollars per barrel) 20.84 22.34 20.27 23.57
 Natural gas (dollars per
 thousand cubic feet) 1.32 1.40 1.33 1.48
 Average exchange rates
 (Cdn$1) US$0.84 US$0.87 US$0.84 US$0.87
 -0- 8/5/92
 /CONTACT: Craig Langpap of Gulf Canada Resources, 403-233-4341/
 (GOU) CO: Gulf Canada Resources Ltd. ST: Alberta IN: OIL SU: ERN


EH -- LA035 -- 7333 08/05/92 18:20 EDT
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