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SHELL OIL ANNOUNCES SECOND QUARTER, SIX MONTHS EARNINGS

 HOUSTON, July 30 /PRNewswire/ -- Shell Oil Company today announced that it has earned $203 million in the second quarter of 1993, an increase of $30 million over the second quarter of 1992. Exclusive of special items in the 1992 quarter, operating earnings increased $130 million, or 178 percent. Earnings for the first half of 1993 were $442 million, compared with a $279 million loss in the 1992 period, which included charges of $635 million from accounting changes, President Philip J. Carroll announced today.
 "These earnings represent the best first half for Shell Oil since 1989. Operational improvements were evident in all three of our principal businesses. But with continuing intense competition and weaker crude oil prices, it is essential that we aggressively seek new opportunities to improve our profitability," Carroll said.
 The substantially higher operating earnings in the second quarter of 1993 reflected a notable improvement in the performance of oil products. Exploration and production and chemical products also contributed to the higher earnings as both natural gas prices and chemical sales volumes increased. Costs were lower in the quarter as a result of continued progress from performance improvement programs implemented over the past two years.
 Six-month earnings in 1993 benefited from improved refined product margins, higher natural gas and crude oil prices, and lower costs. Special items in 1993 were $246 million lower than in 1992, which benefited from prior-year tax adjustments.
 Operating cash flows totaled $420 million in the second quarter of 1993, compared with $613 million last year. For the six-month period, operating cash flows were $649 million, compared with $750 million in 1992. Both 1993 periods were affected by higher working capital requirements, primarily due to lower payables.
 Capital expenditures amounted to $819 million in the first half of 1993, a decrease of $169 million from last year, reflecting reduced spending primarily in oil products. We now expect total capital and exploratory expenditures for all of 1993 to amount to $2.6 billion, down about $400 million from our announced plans.
 Revenues were $5.5 billion for the current quarter, the same as 1992, and $10.6 billion for the first half of 1993, compared with $10.4 billion in 1992. Total debt declined about $200 million during the first half of 1993 to $3.5 billion, bringing Shell's debt-to-total capital ratio to 19 percent.
 Oil and Gas Exploration and Production
 Oil and gas exploration and production earnings of $133 million in the second quarter of 1993 were up $23 million over 1992. Key factors were lower operating costs, reflecting continued benefits from performance improvement programs implemented early in 1992, and significantly higher natural gas prices. These same factors, coupled with higher crude oil prices, contributed to earnings of $251 million in the 1993 first half, an improvement of $33 million over the first half of 1992. Excluding special items of $96 million in the first half of 1992, operating earnings improved $129 million.
 Domestic crude oil production in the second quarter of 1993 declined from the same period last year, due primarily to natural declines and property sales. Adjustments for property sales reduced reported second- quarter 1993 production by about 30,000 barrels per day. First-half 1993 domestic crude oil production was also lower, due to the same factors as in the quarter. Natural gas production in the second quarter of 1993 remained the same as in the prior year, despite losing 100 million cubic feet per day as a result of property sales.
 Oil Products
 Oil products earnings were $83 million in the second quarter of 1993, an increase of $69 million over the same 1992 period. For the first half of 1993, oil products earnings were $170 million, an increase of $194 million over 1992. Special items benefited the earnings comparison a net $26 million in the first half of 1993.
 "We are encouraged with these first-half results in oil products which were the highest since 1989," Carroll said.
 Both 1993 periods benefited from continuing cost management activities, a lower level of scheduled refinery turnarounds, and the new catalytic cracking unit at our Norco manufacturing complex.
 Refined product sales volumes were up about 80,000 barrels per day for both 1993 periods, mainly due to higher inter-refiner sales.
 Chemical Products
 Chemical products earnings for the second quarter of 1993 were $28 million, up $13 million over the same 1992 period. For the first half of 1993, earnings were $108 million, up $57 million, including benefits from special items of $15 million.
 The improvements in the 1993 periods were mainly attributable to increased sales volumes of polymers, including our new polyester resins. Aside from capacity additions, total costs were down for both the 1993 quarter and first half. Domestic business conditions for commodity chemicals remained depressed.
 Corporate/Other
 Costs, mainly related to financing, reduced earnings $41 million and $87 million for the second quarter and first half of 1993, respectively. Tax adjustments benefited both 1992 periods by $90 million for the quarter and about $200 million in the first half.
 SHELL OIL COMPANY
 Financial And Operating Highlights
 Financial Highlights
 (Millions of dollars)
 Second Quarter Six Months
 1993 1992 1993 1992
 Total Revenues $ 5,452 $ 5,455 $10,567 $10,446
 Cash Provided by Operating
 Activities $ 420 $ 613 $ 649 $ 750
 Net Income $ 203 $ 173(X) $ 442 $ (279)(X)
 Capital and Exploratory
 Expenditures $ 594 $ 654 $ 996 $ 1,143
 Operating Segments Information (X)
 (Millions of dollars)
 Segment Income from Operations
 Oil and Gas Exploration
 and Production $ 133 $ 110 $ 251 $ 218
 Oil Products 83 14 170 (24)
 Chemical Products 28 15 108 51
 Corporate/Other (41) 34 (87) 111
 Income from Operations 203 173 442 356
 Cumulative effect of
 Accounting Changes -- -- -- (635)
 Net Income $ 203 $ 173 $ 442 $ (279)
 Capital And Exploratory Expenditures
 (Millions of Dollars)
 Capital Expenditures
 Exploration and Production
 Oil and Gas $ 192 $ 219 $ 371 $ 420
 Other Energy -- 17 1 33
 Oil Products 190 274 268 419
 Chemical Products 98 43 136 83
 Other 18 16 43 33
 Total 498 569 819 988
 Exploratory Expenditures 96 85 177 155
 Total Capital and
 Exploratory Expenditures $594 $ 654 $ 996 $ 1,143
 (X) -- Restated for effect of accounting changes implemented in 1992 as discussed in Note 2 of the Notes to Consolidated Financial Statements in the 1992 Annual Report on Form 10-K filed with the Securities and Exchange Commission.
 Operating Highlights
 (Millions of Dollars)
 Second Quarter Six Months
 1993 1992 1993 1992
 Revenues
 Refined Products $ 2,861 $ 2,704 $ 5,411 $ 4,911
 Chemical Products 924 837 1,773 1,624
 Crude Oil 1,130 1,156 2,265 2,282
 Natural Gas 329 249 629 478
 Coal - 144 - 308
 Other 208 365 489 843
 Total $ 5,452 $ 5,455 $10,567 $10,446
 Chemical Products Revenues
 Primaries
 (olefins, aromatics) $ 228 $ 251 $ 438 $ 473
 Intermediates and
 solvents 295 295 580 585
 Polymers 374 258 697 507
 Other 27 33 58 59
 Total $ 924 $ 837 $ 1,773 $ 1,624
 Volumes (Thousands of barrels
 daily, except natural
 gas)
 Refined Products Sales
 Automotive gasoline 645 606 613 586
 Jet fuel 143 123 145 118
 Kerosene, heating and
 diesel oils 42 35 47 34
 Heavy fuel oils 103 108 112 118
 All other products 268 250 242 219
 Total 1,201 1,122 1,159 1,075
 Refinery Processing Intakes 895(Y) 992 954(Y) 920
 Net Production
 Crude oil and condensate
 United States 324 387 347 398
 International 64 58(Z) 67 62(Z)
 Natural gas liquids 54 58 54 57
 Natural gas (millions of
 cubic feet daily) 1,472 1,474 1,491 1,482
 Weighted Average Prices
 Of Net Production ($/Bbl)
 Crude oil and condensate
 United States $ 15.46 $ 16.29 $ 15.39 $ 14.86
 International $ 17.75 $ 19.32(Z) $ 17.42 $ 18.14(Z)
 Natural gas liquids $ 13.84 $ 12.61 $ 13.90 $ 11.96
 (Y) -- Includes the company's 50 percent equity portion of the Deer Park Refinery, effective April 1, 1993.
 (Z) -- 1992 data excludes Malaysian and Canadian operations, which were disposed of effective January 1992.
 Consolidated Statement Of Income
 (Millions of Dollars)
 Second Quarter Six Months
 1993 1992(X) 1993 1992(X)
 Revenues
 Sales and Other Operating
 Revenue $ 6,066 $ 5,923 $11,677 $11,279
 Less: Consumer Excise
 and Sales Taxes 662 648 1,274 1,239
 Total 5,404 5,275 10,403 10,040
 Equity Earnings, Interest
 and Other Income 48 180 164 406
 Total 5,452 5,455 10,567 10,446
 Costs And Expenses
 Purchases and Operating
 Expenses 4,191 4,122 7,989 7,816
 Selling, General and
 Administrative Expenses 227 239 412 455
 Exploration, Including
 Exploratory Dry Holes 94 82 172 149
 Research Expenses 34 40 73 78
 Depreciation, Depletion,
 Amortization and
 Retirements 435 483 852 1,006
 Interest and Discount
 Amortization 50 65 105 132
 Income and Operating Taxes
 Operating Taxes 140 159 293 338
 Federal and Other Income
 Taxes 78 92 229 116
 Total 5,249 5,282 10,125 10,090
 Income from operations 203 173 442 356
 Cumulative effect of
 Accounting Changes -- -- -- (635)
 Net income $ 203 $ 173 $ 442 $ (279)
 Net Income Change 17 Percent
 Increase
 -0- 7/30/93
 /CONTACT: Kitty Borah or Dee Dee Taylor, 713-241-4544, or Mike Sternesky, 212-632-4888, all of Shell Oil Company/


CO: Shell Oil Company ST: Texas IN: OIL SU: ERN

TS -- NY013 -- 7642 07/30/93 09:49 EDT
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Date:Jul 30, 1993
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