Printer Friendly

SUN COMPANY REPORTS 1991 FOURTH QUARTER AND FULL-YEAR EARNINGS

 SUN COMPANY REPORTS 1991 FOURTH QUARTER AND FULL-YEAR EARNINGS
 PHILADELPHIA, Pa., Jan. 28 /PRNewswire/ -- Sun Company, Inc. (NYSE: SUN) today reported a 1991 fourth quarter net loss of $35 million, or $.33 per share of common stock, compared with net income of $18 million, or $.17 per share, for the fourth quarter of last year.
 Revenues for the quarter were $2.97 billion, compared to $3.95 billion in the 1990 fourth quarter.
 For the full year, Sun recorded a net loss of $387 million, or $3.65 per share of common stock, compared with net income of $229 million, or $2.14 per share in 1990. The 1991 results included $457 million in special charges taken during the first nine months, while the 1990 results included a $30 million after-tax benefit from a change in accounting principle related to refinery turnaround costs and $26 million in operating losses from now discontinued real estate operations. Excluding these special items, Sun's income was $70 million or $.66 per share in 1991 compared with $225 million or $2.11 per share in 1990. Revenues were $11.93 billion in 1991 compared with $13.11 billion in 1990.
 Commenting on the 1991 results, Robert H. Campbell, Sun's president and chief executive officer, said that poor economic conditions impacted all sectors of the business. But he said that, due to a major restructuring completed in the fourth quarter of 1991, the company is now better able to cope with the effects of the sluggish economy. "With our restructuring in place and our refineries in good shape, we feel well positioned to take full advantage of the recovery when it occurs," he said.
 Fourth Quarter 1991
 Campbell said that the decline from 1990 fourth quarter results was primarily due to the impact of lower crude prices on earnings. He also noted that higher net financing expenses (including leasing) contributed to the decline. Partially offsetting these negative factors was the absence of losses from the company's now discontinued real estate operations, which lost $12 million in the 1990 fourth quarter. Domestic refining and marketing results were essentially unchanged from the 1990 quarter.
 Income from Suncor, Sun's 75-percent-owned Canadian vertically integrated subsidiary, was $3 million, a decline of $40 million from the 1990 fourth quarter. Campbell said that $30 million of the decline occurred in Suncor's oil sands operations, which produces synthetic crude oil. Noting that world crude oil prices during the fourth quarter of 1990 were high due to the Persian Gulf crisis, Campbell said the average synthetic crude price in this year's fourth quarter declined 34 percent from a year ago. He also cited a 12 percent decline in synthetic crude oil production volumes, to 56,700 barrels daily, but noted that the 1990 quarter included record monthly production of 68,000 barrels a day in November.
 Also contributing to the decline in Suncor's earnings were a $7 million decrease in Canadian exploration and production results and a $3 million decrease in Canadian refining and marketing income. Campbell noted that the average conventional crude oil price realized by exploration and production operations was down 38 percent from last year's fourth quarter and that refined product margins were also lower.
 International exploration and production operations posted a loss of $11 million in the fourth quarter of 1991, versus a loss of $2 million in the fourth quarter of 1990. Campbell noted that the decline was primarily due to a 37 percent decline in average crude oil prices realized by Sun's international exploration and production operations. The impact of a 14 percent decrease in crude oil volumes was offset by lower taxes, other than income taxes, and lower exploration expenses during the fourth quarter of 1991.
 Net financing expenses (including leasing) increased $15 million primarily due to a smaller investment portfolio, higher average borrowings and lower earnings from leasing operations. Leasing earnings decreased $9 million primarily due to the absence of a $7 million after- tax gain in 1990's fourth quarter from the sale of an ocean-going vessel.
 Domestic refining and marketing operations had a loss of $14 million in the fourth quarter of 1991 compared with a loss of $15 million in the 1990 fourth quarter. Lower refined product margins and the absence of an $8 million after-tax LIFO inventory profit recognized in the fourth quarter of 1990 were offset by lower refinery operating expenses, higher refined product sales volumes, and lower selling, general and administrative expenses. Refined product sales volumes were 657,400 barrels per day during the quarter, up by four percent from year-ago sales, which were adversely affected by refinery turnaround activities.
 Campbell noted that domestic refining and marketing's poor results in the fourth quarter of both years were largely due to low refined product margins. "During the fourth quarter of 1990," he noted, "margins were negatively impacted by political and economic constraints during the Persian Gulf crisis, as gasoline prices did not keep pace with the significant increase in crude oil acquisition costs. In the 1991 fourth quarter, refined product margins were even lower, particularly in our key Northeast marketplace, due to continued oversupply and the sluggish U.S. economy."
 Full Year 1991
 Sun's 1991 net loss of $387 million included the following special charges taken during the first nine months: a provision principally for employee terminations related to the restructuring and consolidation of Sun's corporate headquarters and domestic refining and marketing head office ($124 million after-tax); an accrual for environmental remediation at various domestic refining and marketing sites ($78 million after-tax); and losses from discontinued operations of the company's real estate subsidiary, Radnor Corporation, including a provision for write-down of assets and estimated loss on disposition ($255 million after-tax). Included in the results for 1990 was a $30 million after-tax benefit from a change in accounting principle related to refinery turnaround costs and $26 million in operating losses from now discontinued real estate operations.
 Commenting on results for the full year 1991, Campbell said the 69 percent decline in earnings before special items was largely attributable to lower crude oil prices and lower refined product margins. "Principal factors reducing domestic refining and marketing results were low product margins and sales volumes, higher depreciation expense, and the absence of $8 million in LIFO inventory profits recorded in 1990," he noted. He said these factors were partially offset by lower refinery operating expenses and lower selling, general and administrative expenses.
 Campbell said international exploration and production results were down due to lower crude oil production volumes and prices and higher exploration expenses. "However, our international exploration and production unit now has a more focused mission and should benefit from a streamlining of operations that occurred in 1991," he said.
 He said lower coal results were due to lower coal prices and higher per-ton mining costs.
 Campbell attributed Suncor's lower earnings primarily to lower crude oil prices and lower refined product margins, partially offset by higher synthetic crude oil and refined product sales volumes and a $6 million after-tax gain on the sale of an ocean-going vessel. He said Suncor expects to benefit from continued high oil sands production and refined product sales and has added significantly to its conventional oil and gas reserves in 1991.
 Campbell also noted that Sun experienced higher net financing expenses (including leasing) due to a smaller investment portfolio, higher commercial paper borrowing and significantly lower leasing results, which included a divestment loss in 1991 versus divestment gains in 1990.
 Sun Company is an energy company with interests in U.S. and Canadian petroleum refining and marketing, domestic coal and coke production, synthetic crude oil production in Canada, and crude oil and natural gas exploration and production outside the United States. Branded marketing is carried out under the Sunoco brand in the U.S. and Canada and also under the Atlantic brand in the United States. Sun Company trades on the New York Stock Exchange and other stock exchanges with the symbol "SUN."
 SUN COMPANY, INC.
 EARNINGS PROFILE OF SUN BUSINESSES (AFTER TAX)
 (Millions of Dollars)
 Three months ended Dec. 31 1991 1990(A) Variance
 REFINING AND MARKETING $(14) $(15) $ 1
 INTERNATIONAL EXPLORATION AND
 PRODUCTION (11) (2) (9)
 COAL 5 7 (2)
 CANADA (SUNCOR)
 Exploration and Production -- 7 (7)
 Oil Sands 3 33 (30)
 Refining and Marketing 4 7 (3)
 Corporate Expenses(B) (4) (2) (2)
 Net Financing Expenses -- (2) 2
 Total Canada (Suncor) 3 43 (40)
 CORPORATE
 Corporate Expenses (10) (10) --
 Net Financing Expenses(C) (8) 7 (15)
 (35) 30 (65)
 LOSS FROM DISCONTINUED
 OPERATIONS -- (12) 12
 CONSOLIDATED NET INCOME
 (LOSS) $(35) $ 18 $(53)
 NET INCOME (LOSS) PER SHARE
 OF COMMON STOCK $(.33) $.17
 (A) Restated to conform to 1991 presentation
 (B) Includes consolidation adjustments.
 (C) Includes $1 and $10 million in 1991 and 1990, respectively, attributable to leasing operations.
 EARNINGS PROFILE OF SUN BUSINESSES (AFTER TAX)
 (Millions of Dollars)
 12 months ended Dec. 31 1991 1990(A) Variance
 REFINING AND MARKETING $105 $155 $(50)
 INTERNATIONAL EXPLORATION AND
 PRODUCTION (38) (7) (31)
 COAL 19 35 (16)
 CANADA (SUNCOR)
 Exploration and Production 1 10 (9)
 Oil Sands 30 47 (17)
 Refining and Marketing 19 29 (10)
 Corporate Expenses(B) -- (11) 11
 Net Financing Expenses (3) (8) 5
 Total Canada (Suncor) 47 67 (20)
 CORPORATE
 Corporate Expenses (38) (33) (5)
 Net Financing Expenses(C) (25) 8 (33)
 70 225 (155)
 PROVISION FOR WRITE-DOWN OF
 ASSETS AND OTHER MATTERS (124) -- (124)
 ACCRUAL FOR ENVIRONMENTAL
 REMEDIATION (78)(D) -- (78)
 LOSS FROM DISCONTINUED
 OPERATIONS (255)(E) (26) (229)
 CUMULATIVE EFFECT OF CHANGE
 IN ACCOUNTING PRINCIPLE -- 30 (30)
 CONSOLIDATED NET INCOME
 (LOSS) $(387) $229 $(616)
 NET INCOME (LOSS) PER SHARE
 OF COMMON STOCK $(3.65) $2.14


(A) Restated to conform to 1991 presentation.

(B) Includes consolidation adjustments.

(C) Includes $2 and $22 million in 1991 and 1990, respectively, attributable to leasing operations.

(D) Represents accrual for environmental remediation work at various domestic refining and marketing sites.

(E) Includes a $223 million after-tax provision for write-down of assets and estimated loss on disposition.
 QUARTERLY FINANCIAL AND OPERATING STATISTICS (PRELIMINARY)
 Period ended Quarter 12 Months
 Dec. 31 1991 1990 1991 1990
 INTERNATIONAL EXPLORATION
 AND PRODUCTION
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 47.9 55.9 47.6 54.7
 Average Price (Per Barrel) $19.63 $31.40 $18.58 $22.17
 Natural Gas-North Sea
 (Million Cubic Feet Daily) 67 61 56 62
 Average Price
 (Per Thousand Cubic Feet) $3.64 $3.65 $3.58 $3.41
 Exploration Expenses
 (Millions of Dollars) $29 $33 $84 $73
 COAL
 Coal Production (Thousand Tons):
 Bituminous:
 Metallurgical 483 570 2,090 2,242
 Steam 1,992 2,172 7,969 8,901
 Subbituminous 3,530 2,909 13,743 12,941
 Total 6,005 5,651 23,802 24,084
 Coke Production
 (Thousand Tons) 159 158 622 567
 REFINING AND MARKETING
 Input to Crude Units
 (Thousand Barrels Daily) 533.7 469.5 531.1 554.3
 Refining Input as Percent of
 Rated Capacity 89 78 89 92
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 321.4 307.7 313.9 314.2
 Middle Distillates 174.3 161.4 161.7 159.1
 Residual Fuel 57.2 33.4 43.0 38.3
 Petrochemicals 26.7 21.9 25.3 24.7
 Lubricants 16.8 20.1 17.4 23.9
 Asphalt 22.0 32.2 25.2 32.0
 Propane 13.3 12.9 13.3 11.8
 Other 25.8 41.3 29.3 36.5
 Total 657.5 630.9 629.1 640.5
 CANADA (SUNCOR)
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 8.0 8.6 8.6 8.9
 Average Price (Per Barrel) $17.65 $28.34 $18.09 $21.61
 Natural Gas
 (Million Cubic Feet Daily) 109 77 83 70
 Average Price
 (Per Thousand Cubic Feet) $1.24 $1.35 $1.22 $1.21
 Exploration Expenses
 (Millions of Dollars) $5 $4 $18 $19
 Synthetic Crude Oil Produced
 for Shipment
 (Thousand Barrels Daily) 56.7 64.7 60.6 52.0
 Average Price (Per Barrel) $20.33 $30.58 $20.03 $24.48
 Input to Crude Units
 (Thousand Barrels Daily) 76.6 70.1 72.1 66.9
 Refining Input as Percent of
 Rated Capacity 109 100 103 96
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 45.7 43.0 43.3 41.1
 Middle Distillates 20.8 20.7 19.5 18.6
 Other 17.3 17.0 17.2 18.3
 Total 83.8 80.7 80.0 78.0
 /delval/
 -0- 1/28/92
 /CONTACT: Bud Davis for media contacts, 215-977-3485, or Tim


Hughes for investors, 215-293-6543, both of Sun Company/
 (SUN) CO: Sun Company, Inc. ST: Pennsylvania IN: OIL SU: ERN


CC -- PH025 -- 4450 01/28/92 17:27 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 28, 1992
Words:2117
Previous Article:R.P. SCHERER REPORTS THIRD-QUARTER FINANCIAL RESULTS
Next Article:PETRO PLUS INC. ANNOUNCES NEGOTIATIONS WITH ESSO PETROLEUM CANADA DISCONTINUED
Topics:


Related Articles
UNOCAL ANNOUNCES EARNINGS
SUN COMPANY REPORTS 1991 FOURTH QUARTER AND FULL-YEAR EARNINGS
SHELL OIL ANNOUNCES FOURTH-QUARTER, FULL-YEAR EARNINGS
SUN COMPANY REPORTS 1992 SECOND QUARTER AND SIX-MONTH EARNINGS
SUN COMPANY REPORTS 1992 SECOND QUARTER AND SIX-MONTH EARNINGS
ETHYL REPORTS HIGHER 1992 RESULTS
UNOCAL REPORTS $103 MILLION EARNINGSFOR FOURTH QUARTER; STRONG OPERATING GAINS
CHEVRON ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND YEAR 1992
SUN REPORTS FOURTH CONSECUTIVE GAIN IN QUARTERLY OPERATING INCOME
SHELL OIL ANNOUNCES FOURTH-QUARTER, FULL-YEAR EARNINGS

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