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SHELL CANADA ANNOUNCES CONSOLIDATED EARNINGS FOR THE FIRST NINE MONTHS OF 1993

 CALGARY, Alberta, Oct. 25 /PRNewswire/ -- Shell Canada's consolidated earnings for the first nine months of 1993 were $13 million or 11 cents per Class "A" Common Share compared with a loss of $12 million or 11 cents per share for 1992.
 In the first nine months of 1993 earnings were $41 million, excluding unusual losses of $28 million after tax. The nine-month loss in 1992 was $7 million, excluding unusual losses of $5 million after tax.
 Earnings of $1 million or 1 cent per share were recorded for the third quarter, compared with a loss of $5 million or 5 cents per share in 1992.
 During the third quarter, the company acquired Canadian Turbo Inc. and Pay Less Gas Co. (1972) Ltd. Shell acquired assets and assumed debt and other obligations of approximately $300 million. Various expenses associated with the acquisition, totalling $35 million after tax, have been recorded as an unusual item in the quarter.
 C.W. Wilson, president and chief executive officer, said "while the level of earnings is still disappointing the improvements over 1992 are encouraging. Restructuring activities are continuing to ensure that earnings in 1994 and beyond continue to improve. We anticipate fourth quarter earnings will include further restructuring provisions, offset somewhat by an expected gain from decontracting natural gas sales to California."
 SEGMENTED INFORMATION
 Resources
 Resources earnings were $52 million for the nine months, compared with $95 million for 1992. Excluding gains on non-core asset divestments, the 1993 earnings were $45 million, the same as 1992. Natural gas prices have increased significantly, the result of improving overall market conditions as supply has tightened relative to demand. Liquids volumes continue to increase, largely due to the start-up of the Caroline complex. These advances have been largely offset by lower crude oil volumes due to non-core property divestments, significantly lower sulphur prices and higher expenses associated with the start-up of the new Caroline operation.
 Oil Products
 Oil Products earnings of $23 million include a charge of $35 million related to the Turbo/Pay Less acquisition. This compares to the 1992 loss of $17 million, which included unusual charges of $25 million related to the Shellburn refinery conversion and retail restructuring. Excluding these unusual items, 1993 earnings would have been $58 million and 1992 earnings would have been $8 million. This increase is due to firming of margins and volume gains in the retail markets.
 Chemicals
 Chemicals earnings of $12 million for 1993 compare with a 1992 loss of $6 million. Improvements in commodity pricing, particularly styrene monomer, have led to this increase.
 Corporate
 Corporate expenses were $74 million for the first nine months of 1993, compared with $84 million for 1992. The 1992 expenses included an unusual charge of $30 million related to restructuring expenses. 1992 was favorably impacted by positive income tax adjustments of approximately $15 million.
 SHELL CANADA LTD.
 Financial Highlights
 ($ millions)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Revenues 1,167 1,179 3,472 3,223
 Cash flow from operations 124 34 377 236
 Earnings (loss) 1 (5) 13 (12)
 Earnings (loss) per
 Class "A" common share($) 0.01 (0.05) 0.11 (0.11)
 Results by segment
 Revenues (excluding intersegment sales)
 Resources 171 122 516 390
 Oil Products 856 903 2,537 2,397
 Chemicals 143 153 426 432
 Corporate (3) 1 (7) 4
 Total 1,167 1,179 3,472 3,223
 Cash flow from operations
 Resources 83 79 268 242
 Oil Products 46 16 135 67
 Chemicals 12 5 31 12
 Corporate (17) (66) (57) (85)
 Total 124 34 377 236
 Earnings
 Resources 9 48 52 95
 Oil Products 6 (6) 23 (17)
 Chemicals 8 --- 12 (6)
 Corporate (22) (47) (74) (84)
 Total 1 (5) 13 (12)
 Capital and exploration expenditures
 Resources 65 111 216 386
 Oil Products 270 27 312 91
 Chemicals --- 2 1 5
 Corporate 1 3 4 6
 Total 336 143 533 488
 SHELL CANADA LTD.
 Operating Highlights
 Third Quarter Nine Months
 1993 vs 1992 1993 vs 1992
 (Percent) (Percent)
 Crude oil and natural gas 12 100 +44 10 800 +14
 liquids produced
 - gross (m3/d)
 Natural gas sales from 17 600 +2 18 200 -1
 own production
 - gross ('000 of m3/d)
 Sulphur produced 8 339 +124 5 252 +48
 - gross (tonnes/d)
 Sulphur sales from 3 753 +23 4 184 +4
 own production
 - gross (tonnes/d)
 Crude oil processed by 40 900 -10 41 000 ---
 Shell refineries (m3/d)
 Petroleum product sales (m3/d) 39 600 +1 38 500 +8
 Chemical sales (tonnes/d) 2 513 -6 2 602 -1
 Crude oil average field gate 17.97 -19 19.40 -2
 price ($/bbl)
 Natural gas average plant gate 1.59 +17 1.59 +17
 netback price ($/mcf)
 SHELL CANADA LTD.
 Consolidated Statement of Earnings
 ($ millions)
 3rd Quarter Nine Months
 1993 1992 1993 1992
 Revenues
 Sales and other
 operating revenues 1,167 1,173 3,470 3,208
 Dividends, interest and
 other income --- 6 2 15
 Total 1,167 1,179 3,472 3,223
 Expenses
 Purchased crude oil,
 petroleum products and
 other merchandise 617 689 1,901 1,807
 Operating 161 140 466 431
 Selling and general 183 188 594 583
 Exploration and predevelopment 18 15 48 56
 Depreciation, depletion,
 amortization and retirements 109 83 297 267
 Interest on long-term debt 26 32 83 88
 Total 1,114 1,147 3,389 3,232
 Unusual items loss (49) (53) (43) (17)
 (see Note)
 Earnings
 Earnings (loss)
 before income taxes 4 (21) 40 (26)
 Income taxes 3 (16) 27 (14)
 Earnings (loss) 1 (5) 13 (12)
 Earnings (loss) per
 class "A" common shares ($) 0.01 (0.05) 0.11 (0.11)
 Common shares outstanding
 (millions - monthly
 weighted average) 112 112 112 112
 SHELL CANADA LTD.
 Consolidated Statement of Cash Flows
 ($ millions)
 Nine Months
 1993 1992
 Cash from operating activities
 Cash flow from operations(a) 377 236
 Site restoration 4 (12)
 Movement in working capital
 related to operating
 activities (101) 23
 Total 280 247
 Cash invested
 Capital and exploration expenditures (533) (488)
 Investments, long-term
 receivables and other (34) (28)
 Proceeds on disposal of
 properties, plant and equipment 88 171
 Movement in working capital
 related to investing activities 2 (5)
 Total (477) (350)
 Cash from financing activities
 Proceeds from issuance of
 long-term debt --- 301
 Proceeds from exercise of
 Common Share stock options --- 1
 Dividends paid (50) (51)
 Long-term debt repayments and other (112) (37)
 Total (162) 214
 Increase (decrease) in cash (359) 111
 Cash at Sept. 30 (b) (231) 147
 (a) Cash flow from operations comprises earnings before exploration and predevelopment expenses adjusted for deferred income taxes, depreciation, depletion, amortization, retirements, and other items not affecting cash.
 (b) Cash comprises cash and highly liquid short-term investments less short-term borrowings.
 SHELL CANADA LTD.
 Consolidated Statement of Financial Position
 ($ millions)
 Sept 30, Dec 31,
 1993 1992
 Assets
 Current assets
 Cash and short-term
 investments 1 128
 Accounts receivable 683 695
 Inventories 581 596
 Prepaid expenses 108 97
 Total 1,373 1,516
 Investments, long-term
 receivables and other 183 159
 Properties, plant and equipment 4,475 4,349
 Total 6,031 6,024
 Liabilities
 Current liabilities
 Short-term borrowings 232 ---
 Accounts payable and
 accrued liabilities 579 618
 Other current liabilities 196 231
 Total 1,007 849
 Site restoration 68 53
 Long-term debt 1,138 1,279
 Deferred income taxes 858 846
 Total 3,071 3,027
 Shareholders' Investment
 Capital stock 524 524
 Contributed surplus 291 291
 Retained earnings 2,145 2,182
 Total 2,960 2,997
 Total 6,031 6,024
 SHELL CANADA LTD.
 Note to Consolidated Financial Statements
 Unusual Items
 The following items resulted from transactions or events that do not typify normal business activities.
 3rd Quarter Nine Months
 ($ millions) 1993 1992 1993 1992
 Costs associated with
 Turbo/Pay Less acquisition (55) --- (55) ---
 Gain on divestment of non-core
 Resources assets 6 43 12 79
 Restructuring expenses (a) --- (52) --- (52)
 Shellburn conversion &
 retail restructuring (b) --- (44) --- (44)
 Unusual items before income taxes (49) (53) (43) (17)
 Unusual items after income taxes (32) (28) (28) (5)
 (a) Expenses associated with work force reduction and related office facilities.
 (b) Expenses associated with the conversion of the Shellburn refinery to a terminalling operation and costs associated with further restructuring within the retail area.
 The amounts reported include the results of Shell Canada Ltd. and its subsidiary companies and are unaudited. Certain of the amounts previously reported have been reclassified to conform with the current year's presentation.
 -0- 10/25/93
 /CONTACT: Tony Mitchell, manager of investor relations, 403-691-2175/
 (SHC.)


CO: Shell Canada Ltd. ST: Alberta IN: OIL SU: ERN

JL -- LA055 -- 6638 10/25/93 23:07 EDT
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