PETROMINERALS CORP. ANNOUNCES SECOND QUARTER RESULTS
PETROMINERALS CORP. ANNOUNCES SECOND QUARTER RESULTS TUSTIN, Calif., Aug. 17 /PRNewswire/ -- Petrominerals Corp.
(NASDAQ: PTRO) today announced the financial results for the second quarter ended June 30, 1992. The company reported a second quarter loss of $138,000, or $.02 per share, compared with a profit of $51,000, or $.01 per share, for the period ended June 30, 1991. Revenues for the three months ended June 30, 1992 were $1,445,000, compared with revenues of $2,203,000, for the same period in 1991.
Kenneth M. Padula, the company's chief administrative officer, stated that the results reflected a 41 percent decrease in production service revenues arising from a decline in service rig hours experienced by the company's well servicing division. The decline in revenues was also attributed to a 10 percent decline in oil and gas production, compared with the same period in 1991. The company experienced a 4 percent increase in the average price it receives for its oil, as compared to the second quarter of 1991, and is pleased to report that current oil price postings are approximately $3.25 to $4.25 per barrel higher than the Dec. 31, 1991 prices. In light of these higher oil prices, the company commenced a maintenance and repair program to increase the oil and gas production from its producing wells during the second quarter of 1992. Management anticipates that this program will result in increased oil and gas production profits in the third and fourth quarters of 1992, if oil prices remain at their current levels. Lunn Production Service, the company's well service division, continues to operate at a profit in light of the reduced rig utilization which is currently at 60 percent. During the first quarter of 1992, rigs were released by the major oil companies for whom the company performs well servicing. This was because of a decline in the price of crude throughout the last quarter of 1991 and the first quarter of 1992. The major oil companies for which the company performs well servicing operations are also in the process of implementing reorganization programs. Management is unable to predict, with any degree of certainty, what effect this will have on the company's future production service operations. General and administrative expenses decreased 31 percent in the second quarter of 1992, compared to the same period in 1991. This decrease is a result of the Cost Reduction Program which the company implemented in March 1992. The company has limited the utilization of outside accounting, legal and engineering consulting services. In addition, expenditures have also been reduced in the areas of rent and utilities, travel and entertainment, directors fees, insurance and general office expenses. Further, the corporate staff has been reduced by 29 percent in 1992. Management believes that the Cost Reduction Program will continue to reflect decreases in general and administrative costs as the year progresses. The company's balance sheet remains strong as it continues to reflect a current ratio in excess of 2 to 1 and an $85,000 (22 percent) decrease in long-term debt in 1992. The company has also concentrated on reducing operating costs related to its well servicing and oil and gas production operations. In July, the company was advised that, effective as of Sept. 1, 1992, the Premium Modification Rate for its Workmen's Compensation Insurance was reduced 36 percent. The net effect of this reduction in premium will create a significant savings in the fourth quarter of 1992 and the first three quarters of 1993. Since March 1992, the company has also reduced the well servicing staff by 18 percent and the oil field production staff by 12 percent. Petrominerals Corp. engages in the production and marketing of crude oil and natural gas in California, Texas and Louisiana. Lunn Production Service, a division of Petrominerals Corp. services and maintains oil and gas wells for a number of major oil companies. PETROMINERALS CORP. Summary of Operations (In thousands, except per share amounts) (Unaudited) Three months ended Six months ended June 30, June 30, 1992 1991 1992 1991 Operating revenues $1,445 $2,203 $3,123 $4,470 Net income (loss) (138) 51 (378) (13) Net income (loss) per common share ($.02) $.01 ($.05) ($.00) Shares outstanding 7,810,336 7,810,336 7,810,336 7,810,336 -0- 8/17/92 /CONTACT: Virginia M. Lazar, corporate secretary of Petrominerals Corp., 714-730-5400/ (PTRO) CO: Petrominerals Corp. ST: California IN: OIL SU: ERN
JL -- NYFRON1 -- 0367 08/17/92 09:07 EDT
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|Date:||Aug 17, 1992|
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