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OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1993 THIRD QUARTER RESULTS

 LOS ANGELES, Oct. 20 /PRNewswire/ -- Occidental Petroleum Corp. (NYSE: OXY) today reported net income of $71 million ($.20 per share) for the third quarter of 1993, compared with net income of $84 million ($.27 per share) for the third quarter of 1992. Sales were $1.9 billion for the 1993 third quarter and $2.1 billion for the 1992 third quarter. The 1992 results included the effect of the year-end 1992 restatement to reflect the coal business as a discontinued operation.
 In announcing the results, Occidental stated: "Taxes in the third quarter of 1993 were $135 million greater than the same period in 1992 as a result of a one-time charge of $55 million following the passage of the federal tax bill and a decrease in the tax charge of $80 million in the third quarter 1992 due to a lower effective tax rate. Excluding the one-time charge of $55 million, the resulting effective tax rate for the nine months of each year is approximately the same. The quarter benefited from an after-tax reversal of $181 million of reserves no longer required following the sale of Island Creek Coal Inc., lower interest costs and improved earnings in the chemical division from our cost reduction program."
 Oil and gas earnings before an $18 million charge for environmental and litigation matters were $37 million for the third quarter of 1993. Divisional earnings after this charge were $19 million for the third quarter of 1993, compared with $77 million for 1992. The lower 1993 results primarily reflected lower worldwide crude oil prices, partially offset by higher gas prices which in total reduced earnings by approximately $41 million.
 Natural gas transmission divisional earnings, before the benefit of reductions in the contract impairment reserve, were approximately the same in both years. Divisional earnings, after such benefits, for the third quarter of 1993 were $52 million, compared with $91 million for 1992. The 1993 and 1992 divisional results included net benefits of $14 million and $55 million, respectively, from reductions in the contract impairment reserve.
 Chemical divisional earnings for the third quarter of 1993 were $43 million, compared with $29 million for 1992. Operating earnings improved as a direct result of lower manufacturing and administrative costs. However, while 1993 volumes improved, margins for most products were lower due to competitive pricing.
 Unallocated corporate items included net interest expense of $135 million for the third quarter of 1993, compared to $157 million in 1992. The reduction in interest expense is primarily attributable to lower average interest rates. In addition, extinguishment of high coupon debt resulted in a $9 million net extraordinary loss for the third quarter of 1993.
 The 1993 results included an after-tax benefit of $181 million ($.59 per share), reported as discontinued operations, for the reversal of reserves no longer required following the sale of Island Creek Coal Inc. in July 1993. The 1992 results included the effect of the year-end 1992 restatement to reflect the coal business as a discontinued operation. In addition, the 1993 results included a one-time non-cash tax charge of $55 million to reflect the increase in the federal income tax rate to 35 percent following passage of the 1993 federal tax bill.
 For the first nine months of 1993, Occidental's net income totaled $226 million ($.65 per share), compared with a loss of $3 million ($.02 per share) in 1992. Sales were $6.1 billion in the first nine months of 1993, compared with $6.2 billion in 1992. The 1992 results included the effect of the year-end 1992 restatement to reflect the adoption, effective as of Jan. 1, 1992, of Statements of Financial Accounting Standards No. 106 and No. 109. The 1992 third quarter and nine-month results included $13 million and $20 million losses, respectively, from the discontinued coal operation.
 OCCIDENTAL PETROLEUM CORP.
 Summary of Divisional Net Sales and Earnings
 (Millions, except per-share amounts)
 Third Quarter Nine Months
 Periods Ended Sept. 30, 1993 1992(a) 1993 1992(a)
 Divisional net sales
 Oil and gas $404 $494 $1,277 $1,344
 Natural gas transmission 529 560 1,748 1,713
 Chemical 987 1,083 3,075 3,133
 Other (4) (4) (4) (11)
 Net sales $1,916 $2,133 $6,096 $6,179
 Divisional earnings
 Oil and gas $19 $77 $202 $230
 Natural gas
 transmission 52 91 352 350
 Chemical 43 29 157 93
 Earnings from operations 114 197 711 673
 Unallocated corporate items
 Interest expense, net (135) (157) (409) (460)
 Income taxes (b) (68) 67 (208) (164)
 Other (12) (9) (37) 63
 Income (loss) from continuing
 operations (101) 98 57 112
 Discontinued operations, net 181 (13) 181 (20)
 Extraordinary gain (loss),
 net (9) (1) (12) (2)
 Cumulative effect of changes
 in accounting principles,
 net --- --- --- (93)
 Net Income (Loss) 71 84 226 (3)
 Preferred dividends (12) (1) (28) (3)
 Earnings (loss) applicable to
 common stock $59 $83 $198 ($6)
 Earnings per common share:
 Income (loss) from
 continuing operations ($.36) $.32 $.10 $.36
 Discontinued operations,
 net .59 (.05) .59 (.07)
 Extraordinary gain (loss),
 net (.03) --- (.04) ---
 Cumulative effect of
 changes in accounting
 principles, net --- --- --- (.31)
 Earnings (loss) per
 common share $.20 $.27 $.65 ($.02)
 Average common
 shares outstanding 305.1 302.4 304.8 301.6
 (a) Includes the December 1992 restatement to reflect the coal business as a discontinued operation and the adoption of Statements of Financial Accounting Standards No. 106 and No. 109.
 (b) Includes an offset for charges and credits in lieu of U.S. federal income taxes allocated to the divisions. Divisional earnings in the third quarter of 1993 have benefited from credits allocated by $5 million, $10 million and $9 million at oil and gas, natural gas transmission and chemical, respectively. Divisional earnings in the third quarter of 1992 have benefited from credits allocated by $6 million and $10 million at oil and gas and chemical, respectively, and have been reduced by net charges of $11 million at natural gas transmission.
 SUMMARY OF OPERATING STATISTICS
 Third Quarter Nine Months
 Periods Ended Sept. 30, 1993 1992 1993 1992
 Net oil, gas and liquids
 Production per day:
 United States
 Crude oil and condensate
 (thousands of barrels) 58 60 59 61
 Natural gas liquids
 (thousands of barrels) 12 16 15 15
 Natural gas
 (millions of cubic feet) 585 587 612 618
 Other Western Hemisphere
 Crude oil and condensate
 (thousands of barrels) 115 114 112 108
 Natural gas
 (millions of cubic feet) 2 1 2 1
 Eastern Hemisphere
 Crude oil and condensate
 (thousands of barrels) 53 17 44 18
 Natural gas
 (millions of cubic feet) 50 44 50 44
 Natural Gas
 Transmission Deliveries:
 Sales (billions of cubic feet) 133 169 486 564
 Transportation
 (billions of cubic feet) 389 371 1,183 1,163
 Capital Expenditures
 (millions) $236 $193 $814 $518
 Depreciation, depletion and
 amortization of assets
 (millions) $228 $221 $671 $649
 -0- 10/20/93
 /CONTACT: Howard Collins (media), 310-443-6523, or Kenneth J. Huffman (investors), 212-603-8131, both of Occidental Petroleum/
 (OXY)


CO: Occidental Petroleum Corp. ST: California IN: OIL SU: ERN

EH-JB -- LA024 -- 4577 10/20/93 12:28 EDT
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Date:Oct 20, 1993
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