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 HOUSTON, Jan. 31 /PRNewswire/ -- Pennzoil Co. (NYSE: PZL)

today announced 1991 net income of $21.0 million, or $0.52 per share after a one-time, non-cash charge of $49 million, or $1.21 per share. Net income for 1990 was $93.8 million, or $2.37 per share.
 Fourth quarter 1991 net income was $4.4 million, or $0.11 per share. This compares with net income of $29.9 million, or $0.75 per share, for the same quarter in 1990.
 Revenues from continuing operations for 1991 were $2.685 billion compared with $2.749 billion in 1990. Revenues for the fourth quarter of 1991 were $663 million vs. $731 million in the same period in the prior year.
 In August 1991, Pennzoil reclassified its results to reflect the reinstatement of Purolator Products Co. as a continuing operation. Also affecting 1991 results was the adoption of the Financial Accounting Standards Board Statement 106 which relates to postretirement benefits other than pensions. Adopting this new accounting standard resulted in a one-time, non-cash charge of $49 million, or $1.21 per share, related to periods prior to 1991 and a $2.6 million charge, before tax, related to 1991.
 James L. Pate, president and chief executive officer, characterized 1991 as a challenging year for both the oil and gas industry and the 103-year-old Pennzoil Co.
 "We took aggressive steps in 1991 to sharpen the company's strategic focus and position it for improved profitability. Significant actions included the turnaround at Purolator Products Co., the resolution of a number of problems at Jiffy Lube, and the redirection of our oil and gas activities, with particular emphasis on foreign oil and gas exploration and development," Pate said.
 Concerning Pennzoil's 1991 results, Pate said, "Pennzoil Products Co. had an excellent year, recording operating income 75 percent higher than 1990, due primarily to improved product and refinery margins. Pennzoil motor oil gained almost a full percentage point in market share, advancing its position as the nation's leading seller for the sixth consecutive year.
 "The filtration segment, Purolator, generated positive cash flow from operations through intense working capital and operations management. The nation's largest manufacturer of automotive filters continued to benefit from efforts aimed at lowering the cost of sales and reducing accounts receivable and inventories.
 "Oil and gas results reflect the persistently low natural gas prices that have severely depressed the earnings at most energy companies. Industrywide, gas prices averaged $1.38 per thousand cubic feet last year, the equivalent of only $8.28 per barrel of oil. In Pennzoil's case, low prices for natural gas and crude oil reduced oil and gas operating income by 52 percent when compared to a year earlier.
 "The sulphur segment was impacted by lower sulphur prices and volumes. However, an emphasis on cost control and productivity helped the sulphur segment weather 1991's weaker prices."
 Chevron Investment
 As previously reported through securities filings, Pennzoil owns approximately 9.4 percent of Chevron Corp. outstanding common stock. At Dec. 31, 1991, 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 $56 in market value for each share of Pennzoil common stock.
 Pennzoil's reported earnings for the fourth quarter and 12 month periods in 1991 include the dividends received from this investment ($27.2 million and $107.0 million, respectively), but do not include any portion of its share of Chevron's unremitted or retained earnings. Chevron's reported net income for the fourth quarter of 1991 was $39 million and for the 12 months of 1991 was $1.293 billion.
 If Pennzoil's proportionate share ($121.4 million) of Chevron's 1991 earnings had been distributed to Pennzoil, Pennzoil's 1991 earnings would have been increased, after adjustment for additional taxes, by $13.0 million to a total of $34.0 million -- equivalent to increasing Pennzoil's per share earnings by $0.32, to $0.84 per share. As a result of substantial non-cash charges recorded by Chevron during the fourth quarter 1991, the dividends Pennzoil received from Chevron for that period exceeded Pennzoil's proportionate share ($3.7 million) of Chevron's fourth quarter earnings.
 -0- 1/31/92
 /CONTACT: Robert Harper of Pennzoil, 713-546-8536/
 (PZL) CO: Pennzoil Co. ST: Texas IN: OIL SU: ERN

JT -- NY062 -- 5763 01/31/92 16:20 EST
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Publication:PR Newswire
Date:Jan 31, 1992

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