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PENNZOIL REPORTS FIRST QUARTER RESULTS

 PENNZOIL REPORTS FIRST QUARTER RESULTS
 HOUSTON, April 29 /PRNewswire/ -- Pennzoil Co. (NYSE: PZL) reported


a 1992 first quarter loss of $11.7 million, or $0.29 per share, compared to a 1991 first quarter loss of $27.7 million, or $0.69 per share. First quarter 1991 results, as restated later that year, included a $49 million charge reflecting the adoption of FASB Statement 106 which relates to post-retirement benefits other than pensions.
 Revenues for the first quarter of 1992 were $643 million versus $644 million for the comparable 1991 period.
 Pennzoil President and Chief Executive Officer James L. Pate said Pennzoil's results for the first quarter reflected the extremely depressed conditions in the energy industry.
 "The decline in operating income in the oil and gas segment was entirely due to lower prices," Pate said. Pennzoil's natural gas prices during the first quarter averaged only $1.44 per thousand cubic feet, compared to $1.60 in the same period last year, and $2.05 two years ago. Crude oil prices averaged $15.80 per barrel, down $3.80 per barrel compared to last year. Pate noted that there are some encouraging signs for natural gas prices, a positive development for Pennzoil. "Every 10 cent per mcf increase in the price of natural gas increases our company's annual earnings by roughly $10 million, or 24 cents per share," he said. "Oil prices in recent weeks have also shown improvement," he added.
 "Pennzoil responded to negative industry conditions by refocusing oil and gas activities on areas where we can operate most efficiently and profitably. During the first quarter, we completed an exhaustive review of every oil and gas property and are concentrating our resources on plays and fields where we have the best chance of success, both domestically and internationally, and where we can operate more efficiently.
 "The company completed its first appraisal well in Western Siberia, with positive results. We also began talks with the Azerbaijan government regarding Pennzoil's participation in completing development of the Guneschli Field. This field, located offshore in the South Caspian Sea, has an estimated 600-700 million barrels of remaining recoverable reserves," he said.
 Pate noted that the motor oil and automotive products segment reported higher sales volumes of motor oil and consumer and specialty products. However, these gains were more than offset by lower refinery margins and higher marketing and manufacturing expenses.
 "The sulphur segment suffered from the lowest level of prices in 10 years due primarily to a worldwide economic recession," Pate said. "The Tampa posted price for sulphur during the 1992 first quarter was down $42 per long ton compared to the first quarter in 1991. Currently, the sulphur market appears to be improving somewhat. Unit costs continued to be reduced through an effective cost reduction effort.
 "Purolator Products Co.'s operating performance continues to improve. The filtration products company recorded another good quarter, gaining market share in the automotive filter aftermarket and expanding its customer base. During the first quarter, Purolator consolidated several operations for greater efficiency."
 Chevron Investment As previously reported through securities filings, Pennzoil owns approximately 9.6 percent of Chevron Corp. outstanding common stock. At March 31, 1992, the 32,944,100 shares of Chevron Corp. common stock owned by Pennzoil represented, on a per share basis, approximately 4/5ths of a Chevron share for each Pennzoil share outstanding, or approximately $52 in market value for each share of Pennzoil common stock.
 Pennzoil's reported earnings for the first quarter in 1992 include the dividends received from this investment ($27.2 million), but do not include any portion of its share of Chevron's unremitted or retained earnings. Chevron's reported net income for the first quarter of 1992 was $304 million.
 If Pennzoil's proportionate share ($29.1 million) of Chevron's 1992 first quarter earnings had been distributed to Pennzoil, Pennzoil's 1992 first quarter earnings would have been increased, after adjustment for additional taxes, by $1.7 million -- equivalent to increasing Pennzoil's per share earnings by $0.04, to ($0.25) per share.
 The following are the unaudited results of operations for the quarter ended March 31, 1992, compared with the same period in 1991.
 PENNZOIL COMPANY
 (Expressed in thousands, except per share amounts)
 Three Months Ended
 March 31
 1992 1991
 REVENUES:
 Oil and Gas $ 111,786 $ 119,606
 Motor oil & automotive products 361,007 347,775
 Sulphur 41,960 57,538
 Franchise operations 36,320 29,089
 Filtration products 103,066 102,208
 Other 31,279 32,007
 Intersegment sales (42,599) (44,675)
 Total revenues $ 642,819 $ 643,548
 OPERATING INCOME (LOSS)
 Oil and gas $ 11,200 $ 20,558
 Motor oil & automotive products 14,628 30,507
 Sulphur 1,179 17,627
 Franchise operations (3,650) (2,153)
 Filtration products 3,115 1,076
 Other 22,655 32,494
 Total operating income 49,127 100,109
 Corporate administrative expenses 16,484 15,355
 Interest expenses, net 57,172 60,601
 Income (loss) before income tax (24,529) 24,153
 Income tax (benefit) (12,860) 1,779
 Income (loss) from continuing
 operations (11,669) 22,374
 Discontinued operations
 Income from operations
 previously offset against
 reserve for estimated loss
 on disposition --- (1,087)
 Income (loss) before cumulative
 effect of change in
 accounting method (11,669) 21,287
 Cumulative effect in change in
 accounting method (net of tax) --- (48,974)
 NET LOSS $ (11,669) $ (27,687)
 EARNINGS (LOSS) PER SHARE
 Continuing Operations $ (0.29) $ 0.55
 Discontinued Operations --- (0.03)
 Cumulative Effect of Change in
 Accounting Method --- (1.21)
 TOTAL $ (0.29) $ (0.69)
 AVERAGE SHARES OUTSTANDING 40,491 40,270
 NUMBER OF SHARES OUTSTANDING 40,526 40,298
 PENNZOIL COMPANY
 OPERATING HIGHLIGHTS
 Three Months Ended
 March 31
 1992 1991
 OPERATING DATA
 OIL AND GAS
 Net production
 Crude oil, condensate and natural
 gas liquids (barrels per day) 34,294 30,537
 Natural gas produced for sale
 (Mcf per day) 432,889 420,281
 Weighted average prices
 Crude oil, condensate and natural
 gas liquids (per barrel) $ 15.80 $ 19.60
 Natural gas (per Mcf) $ 1.44 $ 1.60
 MOTOR OIL & AUTOMOTIVE PRODUCTS
 Sales (barrels per day)
 Gasoline and naphtha 22,442 17,547
 Distillates and gas oils 30,777 29,561
 Lubricating oil and other
 specialty products 23,149 20,121
 Residual fuel oils 1,838 980
 78,206 68,209
 Raw materials processed
 (barrels per day) 50,868 54,924
 Refining capacity
 (barrels per day) 70,700 69,900
 SULPHUR
 Sales (in thousands of long tons) 466 445
 Average posted Tampa price (A)
 (per long ton) $ 98.00 $ 140.00
 FRANCHISE OPERATIONS
 Domestic system-wide sales
 (in thousands) $ 119,727 $ 112,768
 Centers open (U.S.) 1,042 1,053
 (A) This is a representative market price and does not necessarily reflect was is received by Pennzoil. Pennzoil's management considers the posted Tampa price to be a more consistent measure of value than other price measurements, which fluctuate with changes in delivery terms and freight rates as well as commodity values.
 -0- 4/29/92
 /CONTACT: Robert Harper of Pennzoil Co., 713-546-8536/
 (PZL) CO: Pennzoil Co. ST: Texas IN: OIL SU: ERN


PS -- NY103 -- 4684 04/29/92 19:54 EDT
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