Printer Friendly

NORCEN ENERGY RESOURCES LTD. ANNOUNCES RESULTS

 NORCEN ENERGY RESOURCES LTD. ANNOUNCES RESULTS
 CALGARY, Alberta, Feb. 18 /PRNewswire/ -- Norcen Energy Resources


Ltd. (AMEX: NCN, Toronto, Montreal: NCN) today announced net earnings of $44.1 million, and cash generated from operations at $279.2 million for 1991. On a per share basis, earnings were $0.49 per ordinary share and cash generated was $4.41 per ordinary share. While earnings and cash flow declined from previous year's record highs, oil and natural gas reserves climbed to new levels as a result of continued exploration and development success and acquisitions.
 Sales and other revenues declined to $982.4 million from $1,047.4, mainly as the result of sharply lower crude oil prices. The average price realized by Norcen from its crude oil and gas liquids production in 1991 was $18.85 per barrel down from $23.65 per barrel in the previous year. Gas prices were also lower, averaging $1.57 per thousand cubic feet, compared to $1.74 in 1990.
 Production of oil and gas liquids in 1991 averaged 54,533 barrels per day compared to 56,762 barrels per day a year earlier. Increases in conventional crude oil in Canada and the United States were more than offset by reduced volumes from Australia and heavy oil cutbacks in Canada. Australian production was down an average 2,952 barrels per day in 1991 mainly because the Jabiru field was shut-in for almost five months for refit and repair of the production facility. In the United States, liquids production increased 1,103 barrels per day mainly because of offshore discoveries in the Gulf of Mexico.
 Operating income in the Oil and Gas Division declined by $115.3 million to $99.2 million. The reductions were mostly in Canadian and Australian operations but were offset by a minor increase in U.S. operations. The most significant factor contributing to the decline was the fall in oil prices, which had risen to exceptional heights through the last five months of 1990 because of the crisis in the Persian Gulf. Norcen's average liquid price in 1991 was 20 percent lower than in the previous year.
 Operating income in the Propane Marketing Division declined from $33.4 million to $29.3 million despite the inclusion of twelve months results of the Skelgas operation compared to only four months in 1990. The U.S. Skelgas marketing network was acquired in September 1990. Major factors contributing to the decline in operating income in the Propane Marketing Division included the continuing effects of the recession in Eastern Canada and the warmer than normal temperatures in virtually all operating areas.
 In the Mineral Resources Division, operating income of $29.6 million remained at approximately the same level as the $30.3 million in 1990.
 Financing costs in 1991 were $80.6 million up $7.0 million from 1990. Income taxes declined $46.1 million to $49.1 million as a result of lower taxable earnings.
 Net earnings declined 66 percent and cash generated from operations was down 22 percent from 1990 which had established all time highs because of the Persian Gulf conflict.
 Capital expenditures in 1991, excluding acquisitions, amounted to $257.8 million equalling the 1990 expenditures. Net acquisitions in 1991, before deducting the sale of the $10.4 million of assets by Skelgas, totalled $35.7 million. In 1990, net acquisitions totalled $213.5, including $181.9 relating to the purchase of Skelgas.
 At the 1991 year-end, Norcen's established reserves amounted to 193.8 million barrels of crude oil and natural gas liquids and 1,785 billion cubic feet of natural gas. This represents a 13 percent increase in oil and gas liquids and a 5 percent increase in natural gas over the comparable levels in 1990.
 NORCEN ENERGY RESOURCES LTD.
 Financial Highlights
 (Millions of dollars except per share amounts)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Financial:
 Sales and Other Revenues $263.7 $346.8 $982.4 $1,047.4
 Operating Income
 Oil and Gas $21.3 $81.5 $99.2 $214.5
 Propane Marketing $7.8 $3.5 $29.3 $33.4
 Mineral Resources $7.5 $13.6 $29.6 $30.3
 Investment and
 Other Revenues $3.3 $5.0 $16.0 $21.4
 Net Earnings $5.3 $45.4 $44.1 $129.2
 Earnings Applicable to
 Ordinary Shares $1.7 $41.0 $29.2 $112.3
 - Per Ordinary Share
 Basic $0.03 $0.70 $0.49 $1.90
 Fully Diluted $0.03 $0.54 $0.49 $1.56
 Cash Generated from
 Operations $67.6 $106.8 $279.2 $356.1
 - Per Ordinary Share
 Basic $1.06 $1.72 $4.41 $5.72
 Fully Diluted $0.79 $1.21 $3.23 $4.14
 Operating:
 Production of Oil and Gas Liquids
 (thousands of barrels per day) 56.7 58.8 54.5 56.8
 Production of Natural Gas
 (millions of cubic feet
 per day) 286.1 284.1 251.2 247.5
 Average Prices Received
 - Oil & Gas Liquids
 (per barrel) $18.94 $31.55 $18.85 $23.65
 - Natural Gas (per thousand
 cubic feet) $1.54 $1.75 $1.57 $1.74
 Sales of Propane (millions
 of liters) 433.7 454.5 1,534.9 1,353.8
 -0- 2/18/92
 /CONTACT: Ron Burrows of Norcen Energy Resources, 403-231-0107/
 (NCN) CO: Norcen Energy Resources Ltd. ST: Alberta IN: OIL SU: ERN


EH-JL -- LA033 -- 0216 02/18/92 19:52 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 18, 1992
Words:904
Previous Article:NEVADA POWER FILES FOR STOCK ISSUANCE
Next Article:KPMG PEAT MARWICK SURVEY REVEALS SOUTHERN CALIFORNIA CONCENTRATION OF FOREIGN-OWNED HEADQUARTERS
Topics:


Related Articles
NORCEN ENERGY RESOURCES LIMITED ANNOUNCES THIRD QUARTER RESULTS
NORCEN ANNOUNCES $259 MILLION CAPITAL SPENDING PROGRAM FOR 1992
NORCEN ENERGY RESOURCES LTD. REPORTS SECOND QUARTER RESULTS
NORCEN REPORTS 23 PERCENT CASH FLOW GAIN
NORCEN REPORTS STRONG FIRST QUARTER RESULTS
NORCEN CONFIRMS STRONG FIRST QUARTER PERFORMANCE
NORCEN CASH FLOW UP 23 PERCENT IN THIRD QUARTER
NORCEN ENERGY RESOURCES LTD. ANNOUNCES FINANCIAL RESULTS FOR 1993
NORCEN ENERGY RESOURCES LIMITED -- FINAL FIRST QUARTER RESULTS
NORCEN ENERGY RESOURCES LTD. ANNOUNCES SIGNING OF U.S. $130 MILLION TERM LOAN FACILITY

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters