Printer Friendly

PETRO-CANADA REPORTS HIGHER EARNINGS AND CASH FLOW

 CALGARY, Alberta, May 4 /PRNewswire/ -- Petro-Canada's (Toronto, Montreal, Vancouver, Alberta: PCA) results for the first quarter of 1993 show continued improvements in earnings and cash flow, following a successful financial turnaround in 1992.
 Consolidated net earnings were $40 million ($0.16 per share), up 25 percent from net earnings of $32 million ($0.15 per share) in the first quarter of 1992. First quarter net earnings in 1993 and 1992 included gains on asset sales of $3 million and $22 million, respectively.
 Cash flow from operations was $149 million ($0.60 per share), an increase of $25 million, or 20 percent, from the first quarter of 1992.
 Lower operating, overhead and interest expenses and higher natural gas prices and volumes were key to the improved results. Petro-Canada reduced operating and overhead expenses by $23 million, while interest expense declined by $18 million, primarily resulting from a decrease in debt of $523 million from the first quarter of 1992. Natural gas revenues in the first quarter of 1993 were $18 million higher than in the first three months of 1992.
 Petro-Canada President and Chief Executive Officer Jim Stanford said, "We achieved a dramatic turnaround in our financial performance in 1992, and clearly we are continuing our improvement in 1993. We worked hard last year to cut costs and reduce debt. Now we are reaping the benefits of those measures, along with improved conditions in the natural gas business."
 Resources division earnings were $30 million in the first quarter of 1993, compared to $28 million for the same period of 1992. Excluding gains from asset sales, earnings were $27 million in the first three months of 1993, up sharply from $7 million in the comparable period of 1992. Cash flow from operations was $80 million, an increase of $6 million, or 8 percent, from the first quarter of 1992.
 Higher crude oil, natural gas and natural gas liquids prices and significantly greater natural gas volumes were partially offset by a lower contribution from the Syncrude oil sands project. A plant turnaround in the first quarter of 1993 was the main reason for the change in Syncrude's performance. Natural gas prices received in the first quarter of 1993 increased 21 percent and averaged $1.49 per thousand cubic feet.
 Products division earnings rose 79 percent and totaled $25 million in the first quarter of 1993, compared to $14 million in the first three months of 1992. Improvements in performance were mainly driven by higher sales and lower costs. Compared to the first quarter of 1992, the daily sales volume of refined products rose by 3.7 percent, while operating and overhead costs were reduced by $11 million.
 Corporate and other net expenses were $15 million in the first quarter of 1993, compared to $10 million in the same period of 1992. While first quarter 1993 results benefited from significantly lower interest expenses, 1992 results for the comparable period included equity earnings of $13 million from the company's interest in Westcoast Energy Inc., which was sold in the third quarter of 1992.
 The board of directors has declared a quarterly dividend of 3.25 cents per share payable on July 1 to shareholders of record on June 3, 1993.
 PETRO-CANADA
 Selected Financial Data
 (Unaudited, millions of dollars)
 First Quarter
 1993 1992
 Revenue
 Resources 266 267
 Products 969 919
 Corporate and other 93 97
 Inter-segment sales (157) (151)
 Total 1,171 1,132
 Net earnings (loss)
 Resources 30 28
 Products 25 14
 Corporate and other (15) (10)
 Total 40 32
 Cash flow from operations
 Resources 80 74
 Products 71 70
 Corporate and other (2) (20)
 Total 149 124
 Expenditures on property, plant
 and equipment and exploration
 Resources 91 85
 Products 18 10
 Corporate and other 3 2
 Total 112 97
 Cash flow return on capital employed
 (12-month rolling average - percent) 12.9 8.3
 Debt 957 1,480(a)
 Debt to debt plus equity (percent) 26.3 37.7
 (a) Net of cash and short-term deposits designated for debt retirement.
 PETRO-CANADA
 Selected Operating Data
 First Quarter
 1993 1992
 Crude oil and natural gas liquids
 production, net before royalties
 (thousands of barrels per day)
 Conventional crude oil 43.9 42.8
 Synthetic and bitumen 17.3 32.0
 Field natural gas liquids 14.3 12.6
 Ethane and natural gas liquids
 production from straddle plants 41.8 41.6
 Natural gas production, net before
 royalties (millions of cubic
 feet per day)
 Including injectants 616 539
 Excluding injectants 610 526
 Petroleum product sales
 (thousands of cubic meters per day)
 Gasolines 18.8 19.0
 Distillates 16.2 15.3
 Other including petrochemicals 7.1 6.3
 Total 42.1 40.6
 Crude oil processed by Petro-Canada
 (thousands of cubic meters per day) 48.2 41.5
 Average refinery utilization (percent) 84 72
 Propane sales (millions of liters) 356 334
 PETRO-CANADA
 Consolidated Statement of Earnings
 (Unaudited, millions of dollars)
 First Quarter
 1993 1992
 Revenue
 Operating 1,143 1,060
 Investment and other income 28 72
 Total 1,171 1,132
 Expenses
 Crude oil and product purchases 575 487
 Producing, refining and marketing 337 354
 General and administrative 55 61
 Exploration 8 12
 Depreciation, depletion and
 amortization 88 102
 Taxes other than income taxes 12 14
 Interest on long-term debt 17 35
 Other interest 4 4
 Total 1,096 1,069
 Earnings before income taxes 75 63
 Provision for income taxes 35 31
 Net earnings 40 32
 PETRO-CANADA
 Consolidated Statement of Retained Earnings
 (Unaudited, millions of dollars)
 First Quarter
 1993 1992
 Retained earnings (deficit)
 at beginning of period (728) (709)
 Net earnings 40 32
 Dividends on common shares (8) (7)
 Retained earnings (deficit) at end of
 period (696) (684)
 PETRO-CANADA
 Share Information
 (Unaudited, stated in dollars)
 First Quarter
 1993 1992
 Net earnings per share 0.16 0.15
 Cash flow from operations per share 0.60 0.58
 Dividends per share 0.0325 0.0325
 Share Price(a) -- High 8 1/4 10 7/8
 -- Low 7 1/4 8 1/8
 -- Close at March 31 7 7/8 8 1/4
 Average shares outstanding (millions) 246.5 215.3
 Shares traded(b) (millions) 36.0 5.8
 (a) Share prices are for trading on the Toronto Stock Exchange.
 (b) Total shares traded on the Toronto, Montreal, Vancouver and Alberta stock exchanges.
 PETRO-CANADA
 Consolidated Statement of Changes in Financial Position
 (Unaudited, millions of dollars)
 First Quarter
 1993 1992
 Operating activities
 Net earnings 40 32
 Items not affecting cash flow
 from operations 101 80
 Exploration expenses 8 12
 Cash flow from operations 149 124
 Decrease in advances on future natural
 gas deliveries (6) (5)
 (Increase) decrease in operating
 working capital (43) 65
 Total 100 184
 Investing activities
 Expenditures on property, plant and
 equipment and exploration (112) (97)
 Proceeds from sale of property,
 plant and equipment 20 147
 Increase in investments, net --- (1)
 Total (92) 49
 Financing activities and dividends
 Decrease in short-term notes payable
 -- Hibernia (86) ---
 Decrease in other short-term notes
 payable, net --- (53)
 Reduction of long-term debt (90) ---
 Increase in notes payable -- Hibernia 98 ---
 Dividends on common shares (8) (7)
 Total (86) (60)
 (Decrease) increase in cash and
 short-term deposits (78) 173
 Cash and short-term deposits
 (deficiency) at beginning of period 82 (12)
 Cash and short-term deposits at
 end of period 4 161
 PETRO-CANADA
 Consolidated Balance Sheet
 (Unaudited, millions of dollars)
 March 31, Dec. 31,
 1993 1992
 Assets
 Current assets
 Cash and short-term deposits 4 82
 Other current assets 1,123 1,074
 Total 1,127 1,156
 Investments 81 80
 Property, plant and equipment, net 3,871 3,865
 Deferred charges and other assets 234 249
 Total 5,313 5,350
 Liabilities and shareholders' equity
 Current liabilities
 Accounts payable and accrued
 liabilities 948 933
 Short-term notes payable -- Hibernia --- 86(a)
 Current portion of long-term debt --- 89
 Total 948 1,108
 Long-term debt 859 868
 Notes payable -- Hibernia 98 ---(a)
 Deferred credits 253 264
 Deferred income taxes 480 467
 Shareholders' equity 2,675 2,643
 Total 5,313 5,350
 (a) The notes payable relate to the Hibernia Project and are guaranteed by the Government of Canada; recourse is limited to the Hibernia Project and related net revenues. These notes are classified as long-term in 1993 pursuant to the completion of an arrangement which resolved the ownership of the project.
 -0- 5/04/93
 /CONTACT: Bob Foulkes (media), Public & Government Affairs, 403-296-8472, or John Skelton (investors), Investor Relations, 403-296-4040, both of Petro-Canada/
 (PCA.)


CO: Petro-Canada ST: Alberta IN: OIL SU: ERN DIV

JB -- LA032 -- 4391 05/04/93 14:06 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 4, 1993
Words:1412
Previous Article:CIVIC SALES LEAD THE WAY IN APRIL
Next Article:STATEMENT BY PACIFIC SCIENTIFIC CO.
Topics:


Related Articles
PETRO-CANADA REPORTS MAJOR IMPROVEMENT IN FINANCIAL RESULTS
PETRO-CANADA CONFIRMS PERFORMANCE IMPROVEMENT WITH RELEASE OF 1992 AUDITED FINANCIAL RESULTS AND OPERATING INFORMATION
PETRO-CANADA CONTINUES STRONG GROWTH IN EARNINGS AND CASH FLOW
PETRO-CANADA REPORTS CONTINUED STRONG FINANCIAL GROWTH
PETRO-CANADA EARNINGS AND CASH FLOW GROWTH CONTINUE
PETRO-CANADA TAKES ACTION TO IMPROVE PROFITABILITY AND PURSUE GROWTH OPPORTUNITIES
Petro-Canada Announces Record Annual Upstream Results.
Petro-Canada Reports Earnings of $95 Million in Third Quarter.
Petro-Canada Announces Record Annual Upstream Results.
Petro-Canada reports record first quarter operating earnings.

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