Printer Friendly

OCCIDENTAL PETROLEUM CORPORATION ANNOUNCES 1992 SECOND QUARTER RESULTS

 OCCIDENTAL PETROLEUM CORPORATION
 ANNOUNCES 1992 SECOND QUARTER RESULTS
 LOS ANGELES, July 23 /PRNewswire/ -- Occidental Petroleum Corporation today reported net income of $75 million ($.25 per share) for the second quarter of 1992, compared with net income of $147 million ($.49 per share) for the second quarter of 1991. Sales were $2.2 billion for the second quarter of 1992, compared with $2.4 billion for the same period in 1991. The 1992 and 1991 results included extraordinary gains of $32 million ($.11 per share) and $12 million ($.04 per share), respectively, primarily resulting from the income tax benefit arising from the application of a net operating loss carryforward.
 In announcing the results, Dr. Ray R. Irani, chairman, president and chief executive officer, said "Improved earnings in oil and gas and gas transmission were offset by lower earnings in chemicals due to low prices. However, we continue to benefit from our restructuring program, in particular through lower interest expense and reduced operating costs. Recently we have noted improvements in demand for our chemical products and oil prices have improved. We are also encouraged by the recent discoveries in our expanded international exploration program."
 Oil and gas divisional earnings were $82 million for the second quarter 1992, compared with $54 million for 1991. The 1992 results reflected the pretax benefit of $35 million from a favorable litigation settlement. In addition, the 1992 results reflected higher worldwide oil prices which were offset by lower oil and gas production and the absence of natural gas liquids income and U.K. oil and gas volumes as both these businesses were sold in the third quarter of 1991.
 Natural gas transmission divisional earnings for the second quarter of 1992 were $125 million, compared with $49 million for 1991. The 1992 results included the benefit of a pretax $75-million reversal of the contract impairment reserve at Natural Gas Pipeline Company of America and United Texas Transmission Company, primarily as a result of the successful resolution of litigation. The 1992 improvement also reflected higher throughput volumes and lower operating costs partially offset by lower margins. The 1991 results included the pretax benefit of a rate case refund of $26 million.
 Chemical divisional earnings for the second quarter of 1992 were $37 million, compared with $127 million for 1991. The decreased 1992 operating earnings resulted primarily from lower sales prices for most major products, partially offset by lower manufacturing costs.
 Coal divisional results for the second quarter of 1992 were a loss of $4 million, compared with income of $8 million in 1991. The decreased 1992 operating results reflected generally lower prices, decreased volumes and higher operating costs resulting from adverse mining conditions.
 Included in the 1991 other unallocated corporate items was a pretax gain of $165 million from the sale of Occidental's interest in the An Tai Bao coal mine in China. Net interest expense in the second quarter 1991 included $45 million of interest income from tax and rate refunds.
 Taxes allocated to the divisions for the second quarter have been reduced by, and division earnings have benefited from, the allocation of a net operating loss carryforward of $7 million in oil and gas, $21 million in natural gas transmission and $5 million in chemical.
 For the first six months of 1992, Occidental's net income totaled $173 million, compared with $283 million in 1991. Sales were $4.3 billion in the first six months of 1992, compared with $5.2 billion in the same period in 1991. Earnings per share were $.57 for the first six months of 1992, compared with $.94 per share for the 1991 period. Included in the six month results were extraordinary gains of $109 million ($.36 per share) in 1992 and $65 million ($.22 per share) in 1991 primarily resulting from the income tax benefit arising from the application of a net operating loss carryforward.
 SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
 (Millions, except per-share amounts)
 Second Quarter Six Months
 Ended June 30 Ended June 30
 1992 1991 1992 1991
 Divisional net sales
 Oil and gas $ 427 $ 651 $850 $ 1,404
 Natural gas transmission 523 441 1,153 1,145
 Chemical 1,084 1,186 2,050 2,388
 Coal 145 151 284 293
 Other (3) (38) (7) (73)
 Net sales $ 2,176 $ 2,391 $4,330 $ 5,157
 Divisional earnings after
 income taxes
 Oil and gas $ 82 $ 54 $160 $ 176
 Natural gas transmission 125 49 266 175
 Chemical 37 127 68 266
 Coal (4) 8 (2) 20
 Earnings from operations 240 238 492 637
 Unallocated corporate items
 Interest expense, net (155) (163) (308) (372)
 Income taxes(1) (25) (69) (182) (152)
 Other (17) 134 62 115
 Income from continuing
 operations 43 140 64 228
 Discontinued operations, net - (5) - (10)
 Extraordinary gain, net 32 12 109 65
 Net income 75 147 173 283
 Preferred dividends (1) (2) (2) (4)
 Earnings applicable to
 common stock $ 74 $ 145 $171 $ 279
 Earnings per common share:
 Income from
 continuing operations $ .14 $ .47 $.21 $ .75
 Discontinued operations,
 net - (.02) - (.03)
 Extraordinary gain, net .11 .04 .36 .22
 Net income $ .25 $ .49 $.57 $ .94
 Average common shares
 outstanding 301.6 298.2 301.2 297.7
 (1) Includes a charge equivalent to the benefit of loss
 carryforwards allocated to the divisions and adjustment to the
 taxes provided by the divisions in order to arrive at the
 quarterly consolidated tax provision.
 SUMMARY OF OPERATING STATISTICS
 Second Quarter Six Months
 Ended June 30 Ended June 30
 1992 1991 1992 1991
 NET OIL, GAS AND LIQUIDS
 PRODUCTION PER DAY:
 United States
 Crude oil and
 condensate (thousands
 of barrels) 61 65 62 65
 Natural gas liquids
 (thousands of barrels) 15 73 15 76
 Natural gas (millions
 of cubic feet) 601 641 634 664
 Other Western Hemisphere
 Crude oil and
 condensate (thousands
 of barrels) 105 107 104 104
 Natural gas (millions
 of cubic feet) 1 20 1 20
 Eastern Hemisphere
 Crude oil and
 condensate (thousands
 of barrels) 18 36 18 39
 Natural gas liquids
 (thousands of barrels) - 1 1 1
 Natural gas (millions
 of cubic feet) 49 60 45 64
 NATURAL GAS TRANSMISSION
 DELIVERIES:
 Sales (billions of
 cubic feet) 172 149 395 358
 Transportation (billions
 of cubic feet) 393 334 792 705
 COAL PRODUCTION
 (millions of tons) 5 5 9 10
 CAPITAL EXPENDITURES
 (millions) $ 197 $ 270 $338 $ 575
 DEPRECIATION, DEPLETION
 AND AMORTIZATION OF
 ASSETS (millions) $ 201 $ 223 $400 $ 440
 -0- 7/23/92 R
 /CONTACT: Howard Collins (media), 310-443-6523, or Kenneth J. Huffman (investors), 212-603-8183, both of Occidental Petroleum/
 (OXY) CO: Occidental Petroleum Corporation ST: California IN: OIL SU: ERN


KD-CH -- LA021 -- 2657 07/23/92 15:14 EDT
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:Jul 23, 1992
Words:1096
Previous Article:PRESIDENT BUSH AWARDS NATIONAL MEDAL OF ARTS TO AT&T
Next Article:CRITICAL CARE AMERICA EXPECTS RECORD SALES AND EARNINGS
Topics:


Related Articles
OCCIDENTAL PETROLEUM CORPORATION ANNOUNCES 1992 SECOND QUARTER RESULTS
OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1992 RESULTS
OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1993 FIRST QUARTER RESULTS
OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1993 SECOND QUARTER RESULTS
OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1993 THIRD QUARTER RESULTS
OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1993 FOURTH QUARTER RESULTS
OCCIDENTAL TO REDUCE DEBT BY $1 BILLION OVER 2 YEARS
OCCIDENTAL PETROLEUM CORPORATION ANNOUNCES 1995 THIRD QUARTER RESULTS
Occidental Petroleum Corporation Announces 1997 Fourth Quarter Results
Occidental Petroleum Corporation Announces 1998 Second Quarter Results

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