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SUN REPORTS 1992 FIRST QUARTER EARNINGS

 SUN REPORTS 1992 FIRST QUARTER EARNINGS
 PHILADELPHIA, April 28 /PRNewswire/ -- Sun Company, Inc. (NYSE: SUN)


today reported a 1992 first quarter net loss of $21 million, or $.20 per share of common stock, compared with net income of $41 million, or $.39 per share, for the first quarter of 1991.
 The 1992 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 approximately 75 percent to approximately 68 percent. Excluding the impact of this sale, the net loss for the quarter was $13 million, or $.12 per share.
 Revenues were $2.53 billion in 1992's first quarter compared with $2.98 billion a year ago.
 Sun said the earnings decline occurred primarily in domestic refining and marketing operations and in Suncor, the company's fully integrated Canadian subsidiary.
 Robert H. Campbell, Sun's chief executive officer and president, said that poor economic conditions continued to affect most segments of the company's business. "Refined product margins were weak during the quarter, even though crude oil prices declined," Campbell noted. "This was especially true in the northeastern United States, where our marketing is concentrated. At the same time, the lower crude prices reduced income in the upstream segments of our business.
 "On the positive side, our 1991 restructuring has reduced our costs, and we are hopeful that gasoline margins will improve as demand picks up in the second quarter."
 Campbell said that, to help offset the poorer-than-expected results, the company is targeting a 10 percent reduction in its $794 million 1992 capital budget, is further reducing operating expenses, and is looking at a variety of income improvement opportunities.
 Sun's domestic refining and marketing operations lost $7 million in the first quarter of 1992 compared with income of $38 million in the 1991 first quarter. Campbell said the cause of the decline was lower refined product margins and higher depreciation expense.
 "Refined product sales volumes were 14 percent higher than a year ago, largely because an unusually high level of refinery maintenance work reduced output in the 1991 first quarter," Campbell said. "But despite this increase in sales, and despite a reduction in operating and other expenses, income was down due to lower prices and poor margins across all products. The negative impact of these low margins simply overwhelmed the positive factors."
 Suncor posted a loss of $1 million versus earnings of $21 million in the first quarter of 1991. Campbell said that although production of synthetic crude oil increased 3 percent to a first quarter record of 64,300 barrels a day at Suncor's oil sands operation in Fort McMurray, Alberta, "a 16 percent decline in synthetic crude oil prices and higher royalty expense more than offset this, resulting in a drop of $12 million in oil sands income. Also, in 1991 there was a $12 million positive impact on Suncor profit from a consolidation adjustment, and this did not recur in 1992."
 Partially offsetting these negative factors was a $4 million increase in Suncor's refining and marketing income. "Refined product margins continued to be squeezed," Campbell said, "but sales volumes increased by 14 percent and expenses were lower."
 Sun's international exploration and production operations broke even for the current quarter, compared to income of $2 million in the first quarter of 1991. Higher exploration expenses and a 9 percent decline in crude oil prices were partially offset by a 4 percent increase in crude oil production volumes, lower general and administrative expenses, and a $4 million increase in after-tax foreign exchange gains.
 Corporate administrative expenses declined by $4 million after-tax due primarily to the impact of the restructuring program implemented in 1991, Campbell said.
 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.
 Earnings Profile of Sun Businesses (after tax)
 (Millions of Dollars)
 Three Months Ended March 31 1992 1991(A) Variance
 REFINING AND MARKETING $ (7) $ 38 $(45)
 INTERNATIONAL EXPLORATION AND
 PRODUCTION -- 2 (2)
 CANADA (SUNCOR)
 Exploration and Production (1) -- (1)
 Oil Sands 1 13 (12)
 Refining and Marketing 2 (2) 4
 Corporate Expenses(B) (2) 12 (14)
 Net Financing Expenses (1) (2) 1
 Total Canada (Suncor) (1) 21 (22)
 COAL 7 7 --
 CORPORATE
 Corporate Expenses (4) (8) 4
 Net Financing Expenses(C) (8) (9) 1
 (13) 51 (64)
 LOSS ON SALE OF SUNCOR STOCK (8) -- (8)
 LOSS ON DISCONTINUED OPERATIONS -- (10) 10
 CONSOLIDATED NET INCOME (LOSS) $(21) $ 41 $(62)
 NET INCOME (LOSS) PER SHARE
 OF COMMON STOCK $(.20) $.39
 (A) Restated to conform to 1992 presentation.
 (B) Includes consolidation adjustment.
 (C) Includes a $3 million after-tax loss in 1991 attributable to leasing operations. Such operations were break even during 1992.
 SUN COMPANY, INC.
 Quarterly Financial and Operating Statistics (Preliminary)
 (Dollars in Millions Except Per Share Amounts)
 For the Quarter Ended March 31 1992 1991
 FINANCIAL SUMMARY
 Revenues $2,530 $2,980
 Income (Loss) from Continuing Operations $(21) $ 51
 Loss from Discontinued Operations -- (10)
 Net Income (Loss) $(21) $ 41
 Net Income (Loss) per Share of
 Common Stock $(.20) $.39
 Weighted Average Number of
 Common Shares Outstanding
 (In Millions) 106.1 106.2
 REFINING AND MARKETING
 Input to Crude Units
 (Thousand Barrels Daily) 513.4 461.1
 Refining Input as Percent of
 Rated Capacity 86 78
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 317.9 286.0
 Middle Distillates 179.4 161.2
 Residual Fuel 59.5 33.6
 Petrochemicals 28.1 23.1
 Lubricants 17.8 16.5
 Asphalt 12.1 13.4
 Propane 14.5 12.9
 Other 25.7 25.5
 Total 655.0 572.2
 INTERNATIONAL EXPLORATION AND
 PRODUCTION
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 47.0 45.2
 Average Price (Per Barrel) $17.16 $18.94
 Natural Gas-North Sea
 (Million Cubic Feet Daily) 70 81
 Average Price
 (Per Thousand Cubic Feet) $3.71 $3.68
 Exploration Expenses
 (Millions of Dollars) $17 $8
 SUN COMPANY, INC.
 Quarterly Financial and Operating Statistics (Preliminary)
 (Dollars in Millions Except Per Share Amounts) continued
 For the Quarter Ended March 31 1992 1991
 CANADA (SUNCOR)
 Net Production of Crude Oil
 and Condensate
 (Thousand Barrels Daily) 9.9 8.8
 Average Price (Per Barrel) $15.61 $18.33
 Natural Gas
 (Million Cubic Feet Daily) 109 80
 Average Price
 (Per Thousand Cubic Feet) $1.10 $1.24
 Exploration Expenses
 (Millions of Dollars) $5 $6
 Synthetic Crude Oil Produced
 for Shipment
 (Thousand Barrels Daily) 64.3 62.2
 Average Price (Per Barrel) $17.33 $20.54
 Input to Crude Units
 (Thousand Barrels Daily) 71.1 68.1
 Refining Input as Percent of
 Rated Capacity 102 97
 Sales of Refined Products
 (Thousand Barrels Daily):
 Gasoline 40.5 37.9
 Middle Distillates 22.4 19.6
 Other 18.6 14.3
 Total 81.5 71.8
 COAL
 Coal Production (Thousand Tons):
 Bituminous:
 Metallurgical 494 568
 Steam 2,028 2,189
 Subbituminous 3,303 4,498
 Total 5,825 7,255
 Coke Production (Thousand Tons) 157 156
 /delval/
 -0- 4/28/92
 /CONTACT: Bud Davis (media), 215-977-3485, or Tim Hughes (investors), 215-977-6544, both of Sun Company/
 (SUN) CO: Sun Company, Inc. ST: Pennsylvania IN: OIL SU: ERN


MK -- PH017 -- 3829 04/28/92 13:00 EDT
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