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SUN COMPANY REPORTS 1992 SECOND QUARTER AND SIX-MONTH EARNINGS

 SUN COMPANY REPORTS 1992 SECOND QUARTER AND SIX-MONTH EARNINGS
 PHILADELPHIA, July 23 /PRNewswire/ -- Sun Company, Inc. (NYSE: SUN) today reported second quarter 1992 net income of $6 million, or $.06 per share of common stock, down 86 percent from year-ago results of $43 million ($.40 per share), which included an $11 million after-tax loss from discontinued operations.
 However, income increased from this year's first quarter, when Sun lost $21 million, or $.20 per share.
 Revenues for the 1992 second quarter were $2.69 billion, compared to $3.03 billion in the 1991 second quarter.
 Sun said the decline in second quarter earnings was caused primarily by lower fuels margins in domestic refining and marketing and a decrease in oil sands earnings at Suncor Inc., Sun's 68-percent-owned Canadian subsidiary.
 Domestic Refining and Marketing
 Sun's domestic refining and marketing operations earned $31 million for the quarter, versus $73 million during the year-ago period. Robert H. Campbell, Sun chairman and CEO, attributed the reduced earnings to a decline in margins on fuels versus the 1991 second quarter.
 "Our refineries are running well, our lubricants, chemicals, and logistics operations are performing well, and our expenses are down significantly as a result of our 1991 restructuring," Campbell said. "But margins on fuels, including 'bottom of the barrel' products, though up somewhat from the first quarter, are still historically low because of the recession."
 Campbell said the company is on target to meet the previously announced $100 million pre-tax expense reduction for the year, most of it in refining and marketing, but he added, "It is clear we need to do more, and we are currently identifying areas for further savings and efficiencies."
 Suncor
 Suncor lost $8 million in the quarter, versus income of $7 million in the 1991 quarter due to lower Oil Sands results. The Oil Sands earnings decline was largely attributable to a fire at the Fort McMurray, Alberta, oil sands plant on April 3. The fire and related operating problems contributed to a 26 percent drop in production of synthetic crude oil. Income was also reduced by the impact of repairs and the sale or third-party upgrading of lower value semi-processed synthetic crude oil production. Second quarter production of 47,000 barrels a day included 9,100 barrels a day of semi-processed crude oil, resulting in a three percent decline in the average sales price of oil sands production.
 Campbell said full production of synthetic crude was resumed on June 28 and has since averaged over 64,000 barrels a day, a near record level. He said Suncor took advantage of the repair period to accelerate the mining of lower grade oil sands, which results in lower levels of production, and to advance planned maintenance outages that had been scheduled for later in the year. "As a result," said Campbell, "Suncor expects to average 60,000 barrels a day for the full year."
 Coal
 Income from Sun's coal operations rose from $3 million in the 1991 second quarter to $6 million this year. This improvement resulted from higher coke and coal sales volumes and lower mining costs.
 International Exploration and Production
 International exploration and production reduced its loss from $13 million in the 1991 second quarter to $10 million this year. Campbell said this improvement was due to lower exploration and depreciation expenses, partially offset by lower crude oil and natural gas production volumes and by $4 million of after-tax foreign exchange losses recognized in the 1992 second quarter.
 Corporate
 Corporate net financing expenses were higher by $4 million after-tax due to lower leasing income and higher interest expense associated with increased long-term debt. However, corporate administrative expenses declined by $7 million after-tax due primarily to the impact of the 1991 restructuring program.
 Six-Month Results
 For the six-month period, Sun reported a net loss of $15 million, or $.14 per share of common stock, compared with net income of $84 million, or $.79 per share, for the same period last year.
 The 1992 first half results included an after-tax loss of $8 million from a secondary offering of 4 million shares of Suncor common stock, which reduced Sun's ownership in Suncor from 75 percent to approximately 68 percent. The 1991 first-half results included $21 million in after- tax losses from discontinued operations. Before these special items, Sun had a net loss of $7 million in the first half of 1992 compared with income of $105 million in the first half of 1991.
 Revenues were $5.22 billion for the first six months of 1992, compared with $6.01 billion in 1991.
 Campbell attributed the decline in first half earnings before special items to lower domestic refining and marketing results and lower earnings at Suncor. The decline in downstream earnings was due to lower refined product margins, partially offset by higher refined product volumes and lower selling, general and administrative expenses. The decline in Suncor's results was largely attributable to lower oil sands earnings due to a decrease in both the amount of synthetic crude oil produced and the average price for the oil.
 Sun Company is an energy company with interests in U.S. and Canadian petroleum refining and marketing, U.S. 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 United States 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.
 Financial Summary
 Second Quarter 1992 1991
 Revenues $2,690,000,000 $3,030,000,000
 Net Income $6,000,000 $43,000,000
 Net Income per Share of
 Common Stock $.06 $.40
 Weighted Average Number of
 Common Shares Outstanding
 (In Thousands) 106,193 106,193
 Six Months
 Revenues $5,220,000,000 $6,010,000,000
 Net Income (Loss) $(15,000,000) $84,000,000
 Net Income (Loss) per Share
 of Common Stock $(.14) $.79
 Weighted Average Number of
 Common Shares Outstanding
 (In Thousands) 106,141 106,192
 SUN COMPANY, INC.
 Earnings Profile of Sun Businesses (after tax)
 (Millions of Dollars)
 Three Months Ended June 30 1992 1991(A) Variance
 REFINING AND MARKETING $ 31 $ 73 $(42)
 INTERNATIONAL EXPLORATION AND
 PRODUCTION (10) (13) 3
 CANADA (SUNCOR)
 Exploration and Production 1 1 --
 Oil Sands (7) 8 (15)
 Refining and Marketing 1 5 (4)
 Corporate Expenses(B) (2) (6) 4
 Net Financing Expenses (1) (1) --
 Total Canada (Suncor) (8) 7 (15)
 COAL 6 3 3
 CORPORATE
 Corporate Expenses (5) (12) 7
 Net Financing Expenses(C) (8) (4) (4)
 Total 6 54 (48)
 LOSS FROM DISCONTINUED
 OPERATIONS -- (11) 11
 CONSOLIDATED NET INCOME $ 6 $ 43 $(37)
 NET INCOME PER SHARE OF
 COMMON STOCK $.06 $.40
 (A) Restated to conform to 1992 presentation.
 (B) Includes consolidation adjustments.
 (C) Includes $2 million after-tax income in 1991 attributable to leasing operations. Such operations were break-even during 1992.
 SUN COMPANY, INC.
 Earnings Profile of Sun Businesses (after tax)
 (Millions of Dollars)
 Six Months Ended June 30 1992 1991(A) Variance
 REFINING AND MARKETING $ 24 $111 $ (87)
 INTERNATIONAL EXPLORATION AND
 PRODUCTION (10) (11) 1
 CANADA (SUNCOR)
 Exploration and Production -- 1 (1)
 Oil Sands (6) 21 (27)
 Refining and Marketing 3 3 --
 Corporate Expenses(B) (4) 6 (10)
 Net Financing Expenses (2) (3) 1
 Total Canada (Suncor) (9) 28 (37)
 COAL 13 10 3
 CORPORATE
 Corporate Expenses (9) (20) 11
 Net Financing Expenses(C) (16) (13) (3)
 Total (7) 105 (112)
 LOSS ON SALE OF SUNCOR STOCK (8) -- (8)
 LOSS ON DISCONTINUED OPERATIONS -- (21) 21
 CONSOLIDATED NET INCOME (LOSS) $(15) $ 84 $ (99)
 NET INCOME (LOSS) PER SHARE
 OF COMMON STOCK $(.14) $.79
 (A) Restated to conform to 1992 presentation.
 (B) Includes consolidation adjustments.
 (C) Includes a $1 million after-tax loss in 1991 attributable to leasing operations. Such operations were break-even in 1992.
 SUN COMPANY, INC.
 Quarterly Financial and Operating Statistics (Preliminary)
 Periods ended June 30 Quarter Six Months
 FINANCIAL SUMMARY 1992 1991 1992 1991
 Revenues $2,690 $3,030 $5,220 $6,010
 Income (Loss) from
 Continuing Operations $ 6 $ 54 $ (15) $105
 Loss from Discontinued Operations -- (11) -- (21)
 Net Income (Loss) $ 6 $ 43 $ (15) $ 84
 Net Income (Loss) per Share of
 Common Stock $.06 $.40 $(.14) $.79
 Weighted Average Number of
 Common Shares Outstanding
 (In Millions) 106.2 106.2 106.1 106.2
 REFINING AND MARKETING
 Input to Crude Units
 (Thousand Barrels Daily) 547.9 566.5 530.6 514.1
 Refining Input as Percent of
 Rated Capacity 91 94 88 86
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 317.7 319.6 311.1 302.9
 Middle Distillates 169.9 146.7 174.7 153.9
 Residual Fuel 48.2 39.4 53.8 36.5
 Petrochemicals 29.4 26.4 28.7 24.8
 Lubricants 18.6 18.0 18.2 17.3
 Asphalt 32.0 28.4 22.0 20.9
 Propane 13.3 12.5 13.9 12.7
 Other 19.3 36.7 22.5 31.1
 Total 648.4 627.7 644.9 600.1
 INTERNATIONAL EXPLORATION AND
 PRODUCTION
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 41.5 49.8 44.3 47.5
 Average Price (Per Barrel) $19.08 $17.41 $18.06 $18.14
 Natural Gas-North Sea
 (Million Cubic Feet Daily) 31 56 50 68
 Average Price
 (Per Thousand Cubic Feet) $ 2.85 $3.49 $ 3.44 $ 3.60
 Exploration Expenses
 (Millions of Dollars) $10 $25 $27 $33
 CANADA (SUNCOR)
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 9.2 8.9 9.5 8.9
 Average Price (Per Barrel) $17.74 $17.45 $16.35 $17.88
 Natural Gas
 (Million Cubic Feet Daily) 109 77 109 78
 Average Price
 (Per Thousand Cubic Feet) $.93 $1.26 $1.01 $1.25
 Exploration Expenses
 (Millions of Dollars) $4 $4 $9 $10
 Synthetic Crude Oil Produced
 for Shipment
 (Thousand Barrels Daily) 47.0(A) 63.7 55.6 63.0
 Average Price (Per Barrel) $18.52(B) $19.03 $17.79 $19.77
 Input to Crude Units
 (Thousand Barrels Daily) 67.9 67.6 69.5 67.9
 Refining Input as Percent of
 Rated Capacity 97 97 99 97
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 45.4 44.8 42.9 41.3
 Middle Distillates 21.3 19.2 21.8 19.4
 Other 17.7 23.4 18.3 18.9
 Total 84.4 87.4 83.0 79.6
 (A) Includes 9.1 thousand barrels daily of semi-processed synthetic crude oil production. A fire on April 3, 1992, damaged the unifiner at the oil sands plant limiting the plant's ability to produce fully processed synthetic crude oil. The plant resumed full operations on June 28.
 (B) Represents the weighted average per barrel price received for fully and semi-processed synthetic crude oil. The average price for fully processed synthetic crude oil was $19.77 per barrel.
 COAL
 Coal Production (Thousand Tons):
 Bituminous:
 Metallurgical 511 545 1,005 1,113
 Steam 1,775 1,855 3,803 4,044
 Subbituminous 3,658 3,007 6,961 7,505
 Total 5,944 5,407 11,769 12,662
 Coke Production (Thousand Tons) 161 148 318 304
 /delval/
 -0- 7/23/92 R
 /CONTACT: Bud Davis (media), 215-977-3485, or Tim Hughes


(investors), 215-977-6544, both of Sun Co./
 (SUN) CO: Sun Company Incorporated ST: Pennsylvania IN: OIL SU: ERN


LJ-MK -- PH003 -- 2349 07/23/92 09:50 EDT
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Date:Jul 23, 1992
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