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NORCEN ENERGY RESOURCES LTD. ANNOUNCES RESULTS

 CALGARY, Alberta, Feb. 16 /PRNewswire/ -- Norcen Energy Resources Ltd. (AMEX: NCN; Toronto, Montreal: NCN) today announced its financial results for 1992. Cash generated from operations, at $316.8 million, was up 13 percent from the previous year as the result of a strong operating performance from the Oil and Gas Division. On a fully diluted per share basis, cash generated was $3.63 per ordinary share, compared to $3.23 per share in 1991.
 Total sales and other revenues increased to $1,009.0 million in 1992 from $976.1 million in the preceding year, reflecting production gains and price improvements for oil and gas.
 Net earnings for 1992 amounted to $38.9 million, down from $44.1 million because of a variety of factors, including reduced contributions from propane marketing and minerals operations, increased financial expense and a provision for loss on the company's investment portfolio. Earnings applicable to common shares at $31.9 million were up from $29.2 million in the previous year, reflecting a decrease in dividends on preference shares as the result of the retraction of $89.9 million of first preference shares early in 1992. On a per share basis, earnings were $0.49 per ordinary share, unchanged from 1991.
 Production of oil and gas liquids in 1992 averaged 56,362 barrels per day, up 3 percent from the previous year. Canadian and U.S. volumes increased to record highs of 45,079 barrels per day and 3,906 barrels per day, respectively. These gains together with new production from Russia and Argentina more than offset a shortfall in Australia where production is in decline.
 Norcen's natural gas production climbed to a record high of 291.3 million cubic feet per day in 1992, up 16 percent from the previous record set in 1991. The increased volumes reflected gains in both Canada and the United States, plus new production in Argentina.
 The average price realized by Norcen for its worldwide production of oil and gas liquids in 1992 was $19.39 per barrel, compared to $18.85 per barrel a year earlier. The company's average natural gas price also was higher, averaging $1.60 per thousand cubic feet, compared to $1.57 per thousand cubic feet in 1991.
 Operating income from the Propane Marketing division in 1992 declined to $17.5 million from $29.3 million in the previous year, as weak economic recovery and warm winter weather in key marketing areas combined to reduce demand and exert downward pressure on prices.
 In the Mineral Resources division, operating income declined to $24.9 million from $29.6 million in the preceding year, reflecting the difficult conditions being experienced in the iron and steel industries as the result of the worldwide economic slowdown.
 Capital expenditures in 1992, excluding acquisitions, amounted to $169.7 million, down from $257.8 million in 1991. The reduced level of spending partly reflected cautionary cutbacks early in 1992 when it was feared that forecast prices might not be realized. In addition, a number of development projects planned for Western Canada did not get underway until late in the year, resulting in a carry forward of associated expenditures into 1993.
 In conjunction with the capital spending program, considerable success was achieved in property rationalization activities. Dispositions of a variety of generally small non-core properties netted the total sum of $76.5 million. These proceeds were redeployed towards the acquisition of producing property interests with greater upside potential, principally in the U.S. Gulf Coast region, Argentina and Russia. Total acquisitions in 1992 amounted to $95.3 million.
 At year-end 1992, Norcen's established reserves of oil and gas liquids totalled 199.3 million barrels, up 3 percent from a year earlier, while gas reserves, at 1,752 billion cubic feet were down slightly from 1,785 billion cubic feet.
 NORCEN ENERGY RESOURCES LTD.
 Highlights
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Financial
 (Millions of dollars
 except per share
 amounts)
 Sales and
 other revenues $306.1 $262.3 $1,009.1 $976.1
 Operating income
 Oil and gas $40.7 $21.3 $131.4 $99.2
 Propane marketing $7.8 $7.8 $17.5 $29.3
 Mineral resources $6.0 $7.5 $24.9 $29.6
 Investment and other
 revenues $2.4 $3.3 $11.3 $16.0
 Net earnings $13.5 $5.3 $38.9 $44.1
 Earnings applicable
 to ordinary shares $11.8 $1.7 $31.9 $29.2
 Per ordinary
 share basic $0.17 $0.03 $0.49 $0.49
 Fully diluted $0.17 $0.03 $0.49 $0.49
 Cash generated from
 operations $100.6 $67.6 $316.8 $279.2
 Per ordinary
 share basic $1.42 $1.06 $4.74 $4.41
 Fully diluted $1.14 $0.79 $3.63 $3.23
 Operating
 Production of oil
 and gas liquids
 (thousands of
 barrels per day) 56.9 56.7 56.4 54.5
 Production of
 natural gas
 (millions of
 cubic feet
 per day) 340.6 286.1 291.3 251.2
 Average prices
 received oil
 and gas liquids
 (per barrel) $20.45 $18.94 $19.39 $18.85
 Natural gas (per
 thousand
 cubic feet) $1.90 $1.54 $1.60 $1.57
 Sales of propane
 (millions
 of liters) 473 434 1,530 1,535
 -0- 2/16/93
 /CONTACT: Ron Burrows, manager of investor relations of Norcen Energy Resources Ltd., 403-231-0107/
 (NCN)


CO: Norcen Energy Resources Ltd. ST: Alberta IN: OIL SU: ERN

JL -- LA031 -- 7004 02/16/93 17:38 EST
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