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OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1992 THIRD QUARTER RESULTS

 OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1992 THIRD QUARTER RESULTS
 LOS ANGELES, Oct. 22 /PRNewswire/ -- Occidental Petroleum Corp. (NYSE: OXY) today reported net income of $61 million ($.20 per share) for the third quarter of 1992, compared with net income of $171 million ($.56 per share) for the third quarter of 1991. Sales were $2.3 billion for both the 1992 and 1991 periods. The 1992 results included an extraordinary loss of $8 million ($.03 per share) which consisted of a $7 million extraordinary loss arising from a timing adjustment to the previously reported benefit of net operating loss carryforwards and a $1 million extraordinary loss resulting from the early extinguishment of debt. The 1991 results included a net extraordinary gain of $75 million ($.25 per share) which consisted of a $182 million extraordinary gain from the income tax benefit arising from the application of a net operating loss carryforward, partially offset by a $107 million extraordinary loss resulting from the early extinguishment of debt.
 In announcing the results, Dr. Ray R. Irani, chairman, president and chief executive officer, said, "Oil and gas operating earnings reflect recent higher prices; however chemical earnings continue to be adversely affected by worldwide economic conditions. Interest expense continues at reduced levels as a result of our restructuring program."
 Oil and gas divisional earnings for the third quarter of 1992 were $81 million compared with $57 million for 1991 prior to the gain from the U.K. sale including the benefit of the net operating loss carryforward attributed to the gain, special charges, and income from the natural gas liquids business sold in the third quarter of 1991.
 Divisional earnings in 1991, after these items were $636 million. Improved 1992 operating results reflected higher worldwide crude oil and domestic gas prices and lower operating costs, partially offset by lower domestic crude oil and natural gas volumes. The 1991 results included a gain of $646 million from the sale of the U.K. North Sea interests, which included $112 million of extraordinary tax credit allocated to the sale, and a $74 million pretax charge provided for environmental remediation and litigation reserves.
 Natural gas transmission divisional earnings for the third quarter of 1992 were $97 million compared with $56 million for 1991. The 1992 results included the benefit of a pretax $55 million reduction of the contract impairment reserve at Natural Gas Pipeline Company of America and United Texas Transmission Company, primarily resulting from the elimination of certain potential claims and the reduction in net exposure under disadvantageous gas purchase contracts. The 1992 results also reflected increased transportation volumes, lower operating costs and lower transportation rates and sales margins.
 Chemical divisional earnings for the third quarter of 1992 were $31 million, compared with $79 million for 1991 prior to a $260 million restructuring charge and an $80 million charge for environmental remediation. Divisional results for 1991 after these items were a loss of $261 million. The 1992 earnings from operations were adversely affected by lower margins for most major products. In addition, the results for Occidental's agricultural products operations were negatively impacted by a lack of sales to Russia and the Ukraine of superphosphoric acid, partially offset by increased sales of other fertilizer products, but at lower prices.
 Coal divisional results for the third quarter of 1992 were a loss of $16 million, compared with income of $1 million in 1991. The decline in 1992 results primarily reflected decreased volumes attributable to the idling of several mines, and a $4 million charge for a reclamation settlement. The 1991 results included a $4 million provision for severance costs related to an employee reduction program.
 In the third quarter of 1991, Occidental sold all of its 51 percent common stock holding in IBP, inc. in an underwritten rights offering. The $52 million


net loss ($.18 per share) on this discontinued operation included Occidental's proportionate share of IBP's operating earnings for the third quarter of 1991 of $5 million and the $57 million loss on disposition. This loss was offset by the application of an extraordinary tax credit resulting in an overall positive contribution to net income.
 Included in the third quarter of 1991 unallocated corporate items - interest expense was a pretax charge of $52 million for accelerating the amortization of original issue discount on a portion of the debt retired in the fourth quarter 1991 as part of Occidental's debt retirement program.
 Taxes allocated to the divisions for the third quarter of 1992 have been increased by, and divisional earnings have incurred a charge from, the timing adjustment of the previously applied benefit of net operating loss carryforwards of $2 million in oil and gas, $4 million in natural gas transmission and $1 million in chemicals. In the third quarter of 1991, the divisions benefited from lower allocated taxes as a result of the application of a net operating loss carryforward by $125 million in oil and gas, including $112 million attributable to the sale of the U.K. North Sea interests, $25 million in natural gas transmission, $3 million in chemicals and $1 million in coal. In addition, $58 million of the third quarter 1991 net operating loss carryforward benefit was attributable to the disposition of IBP.
 For the first nine months of 1992, Occidental's net income totaled $234 million ($.76 per share), compared with $454 million ($1.50 per share) for the same period in 1991. Sales were $6.6 billion for the first nine months of 1992, compared with $7.5 billion for the same period in 1991. Included in the nine-month results of 1992 were net extraordinary gains of $103 million resulting from the income tax benefit arising from the application of a net operating loss carryforward, partially offset by an extraordinary loss of $2 million resulting from the early extinguishment of debt. The 1991 results included $247 million of extraordinary gains resulting from the income tax benefit arising from the application of a net operating loss carryforward, partially offset by an extraordinary loss of $107 million resulting from the early extinguishment of debt.
 OCCIDENTAL PETROLEUM CORP.
 Summary of Divisional Net Sales and Earnings
 (Millions, except per-share amounts)
 Third Quarter Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1992 1991 1992 1991
 Divisional net sales
 Oil and gas $494 $597 $1,344 $2,001
 Natural gas transmission 560 494 1,713 1,639
 Chemical 1,083 1,097 3,133 3,485
 Coal 135 161 419 454
 Other (4) (19) (11) (92)
 Net sales $2,268 $2,330 $6,598 $7,487
 Divisional earnings after
 income taxes
 Oil and gas $81 $636 $241 $812
 Natural gas transmission 97 56 363 231
 Chemical 31 (261) 99 5
 Coal (16) 1 (18) 21
 Earnings from operations 193 432 685 1,069
 Unallocated corporate items
 Interest expense, net (158) (213) (466) (585)
 Income taxes(a) 47 (54) (135) (206)
 Other (13) (17) 49 98
 Income from continuing
 operations 69 148 133 376
 Discontinued operations,
 net --- (52) --- (62)
 Extraordinary gain
 (loss), net (8) 75 101 140
 Net income 61 171 234 454
 Preferred dividends (1) (2) (3) (6)
 Earnings applicable to
 common stock $60 $169 $231 $448
 Earnings per common share:
 Income from continuing
 operations $.23 $.49 $.43 $1.24
 Discontinued operations,
 net --- (.18) --- (.21)
 Extraordinary gain
 (loss), net (.03) .25 .33 .47
 Net income $.20 $.56 $.76 $1.50
 Average common shares
 outstanding 302.4 299.0 301.6 298.2
 (a) Includes a charge equivalent to the benefit/(charge) of loss carryforwards allocated to the divisions and adjustments to the taxes provided by the divisions in order to arrive at the quarterly consolidated tax provision.
 OCCIDENTAL PETROLEUM CORP.
 Summary of Operating Statistics
 Third Quarter Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1992 1991 1992 1991
 Net oil, gas and liquids
 production per day:
 United States
 Crude oil and condensate
 (thousands of barrels) 60 64 61 65
 Natural gas liquids
 (thousands of barrels) 16 52 15 68
 Natural gas (millions
 of cubic feet) 587 600 618 643
 Other Western Hemisphere
 Crude oil and condensate
 (thousands of barrels) 114 104 108 104
 Natural gas (millions
 of cubic feet) 1 20 1 20
 Eastern Hemisphere
 Crude oil and condensate
 (thousands of barrels) 17 18 18 32
 Natural gas liquids
 (thousands of barrels) --- 1 --- 1
 Natural gas (millions
 of cubic feet) 44 52 44 60
 Natural gas transmission
 deliveries:
 Sales (billions of
 cubic feet) 169 201 564 559
 Transportation
 (billions of
 cubic feet) 371 322 1,163 1,027
 Coal production
 (millions of tons) 3 4 12 14
 Capital expenditures
 (millions) $201 $184 $539 $759
 Depreciation, depletion
 and amortization of
 assets (millions) $206 $207 $606 $647
 -0- 10/22/92
 /CONTACT: Howard Collins (media), 310-443-6523, or Kenneth J. Huffman (investors), 212-603-8183, both of Occidental Petroleum/
 (OXY) CO: Occidental Petroleum Corp. ST: California IN: OIL SU: ERN


EH -- LA019 -- 3663 10/22/92 13:29 EDT
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