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TEXACO REPORTS RESULTS FOR THE FIRST QUARTER 1992

 TEXACO REPORTS RESULTS FOR THE FIRST QUARTER 1992
 WHITE PLAINS, N.Y., April 23 /PRNewswire/ -- Texaco Inc. (NYSE: TX)


announced today that consolidated worldwide net income for the first quarter of 1992 was $200 million, or $.68 per share, compared with net income of $415 million, or $1.51 per share for the first quarter of 1991.
 James W. Kinnear, Texaco's president and chief executive officer, stated: "The weakness in the U.S. and most other world economies has lessened the demand for crude oil and petroleum products. As a result, crude oil prices within the industry have fallen some 15 percent since the first quarter 1991. Product margins also were depressed throughout the quarter in the U.S., Europe and several other significant markets. Moreover, U.S. natural gas prices continued to deteriorate in the first quarter and were well below seasonal levels due to milder weather and the effects of a weak U.S. economy and over supply conditions."
 Kinnear added, "We are intent on maintaining our strong financial position in the face of difficult market conditions which still prevail despite our modest increase in refined product sales volume in the quarter. We have carefully prioritized our capital programs and, in view of generally depressed industry conditions, are reducing our planned capital expenditures by 10 percent for the year. We continue to focus on closely managing costs and expenses, and these programs, together with the reduction in capital expenditures, are expected to produce cash savings of approximately $500 million in 1992."
 Texaco's revenues for the first quarter 1992 were $8.6 billion versus $10.2 billion for the same period of 1991. The reduced 1992 revenues reflect significantly lower crude oil, natural gas, refined product and petrochemical prices, which were only slightly offset by higher refined product sales volumes.
 OPERATING EARNINGS
 Petroleum and Natural Gas
 United States
 -- Exploration and production earnings in the U.S. for the first quarter of 1992 were $87 million as compared to $204 million for the first quarter of 1991. The decrease is due to lower crude prices, compared to the 1991 first quarter when the Middle East conflict had pushed prices upwards. Depressed natural gas prices as a result of slack market demand and the recessionary economy also contributed to the decrease in earnings. Liquids production levels reflected natural declines in maturing fields.
 -- Manufacturing and marketing earnings for the first quarter 1992 were $80 million versus $60 million for the first quarter 1991. Results for 1992 reflect modest improvements on the West Coast which experienced negative margins in 1991. Decreased manufacturing expenses and higher product sales volumes contributed to the improved results.
 International
 -- Exploration and production earnings outside the U.S. were $53 million for the first quarter of 1992 versus $78 million for the first quarter of 1991. The decrease reflects comparatively lower crude oil prices during the first quarter of 1992. Partially offsetting these decreases were reduced exploratory expenses in the U.K. North Sea, increased crude oil production in Indonesia, and new field production in China.
 -- Manufacturing and marketing results were $92 million for the first quarter 1992 compared to $211 million for the first quarter 1991. The first quarter 1992 earnings reflect lower refined product margins, mainly in Europe, where 1991 price levels reflected the impact of Middle East hostilities and unseasonably cold weather. Refined product margins decreased in the Caltex area, especially in Japan, compared to the 1991 quarter, when the government had allowed price increases to pass on the accumulated higher costs of crude oil. These results were partially offset by increased refined product sales volumes for Caltex and in Latin America for 1992 as well as lower operating expenses in Europe.
 Petrochemical
 -- Petrochemical earnings were $9 million for the first quarter 1992 as compared to $17 million for the first quarter 1991. Lower sales prices for ethylene and its derivatives contributed to decreased earnings in the U.S., partially offset by lower expenses, as well as lower costs for specialty chemicals due to higher utilization of manufacturing facilities in the U.S. Internationally, earnings improved slightly due to benefits derived from improved margins.
 Corporate/Nonoperating
 -- Corporate/nonoperating results for 1992 benefited from lower corporate expense.
 Capital and Exploratory Expenditures
 -- Worldwide capital and exploratory expenditures, including equity in such expenditures of affiliates, were $641 million for the first quarter of 1992 versus $791 million for the first quarter of 1991. The decrease in 1992 is due to generally depressed industry conditions and reflects lower drilling and development activity in the United States and the U.K. North Sea as compared to the higher levels sustained in these upstream areas during the first quarter of 1991. Increased expenditures for refinery upgrades in the U.S. were offset by lower expenditures for service station acquisitions and refurbishments.
 TEXACO, INC.
 First quarter: 1992 1991
 Functional net income ($000,000)
 Operating earnings (losses)
 Petroleum and natural gas
 Exploration and production
 United States $ 87 $ 204
 International 53 78
 Total 140 282
 Manufacturing, marketing and
 distribution
 United States 80 60
 International 92 211
 Total 172 271
 Total petroleum and
 natural gas 312 553
 Petrochemical
 United States 4 15
 International 5 2
 Total petrochemical 9 17
 Nonpetroleum (3) ( 5)
 Total operating earnings 318 565
 Corporate/Nonoperating (118) (150)
 Total net income $ 200 $ 415
 Net income per common
 share (dollars) $ .68 $ 1.51
 Average number of common shares
 outstanding (000,000) 258.5 258.2
 Number of common shares outstanding
 at end of period (000,000) 258.5 258.2
 Other financial data ($000,000)
 Revenues $ 8,560 $ 10,180
 Net Income $ 200 $ 415
 Total assets as of March 31 (A) $25,500 $ 25,381
 Stockholders' equity as
 of March 31 $ 9,781 $ 9,561
 Total debt as of March 31 (a) $ 6,600 $ 6,385
 Capital and exploratory expenditures
 Texaco Inc. and subsidiary companies
 Exploration and production
 United States $ 177 $ 280
 International 173 233
 Total 350 513
 Manufacturing, marketing and
 distribution
 United States 67 82
 International 57 42
 Total 124 124
 Petrochemical 33 34
 Other 12 17
 Total 519 688
 Equity in affiliates
 United States 58 47
 International 64 56
 Total 122 103
 Total, including equity
 in affiliates $ 641 $ 791
 Dividends paid to common
 stockholders $ 207 $ 207
 Dividends per common
 share (dollars) $ .80 $ .80
 Dividend requirements for preferred
 stockholders $ 25 $ 26
 Operating Data - Including
 Interests in Affiliates
 Net production of crude oil and
 natural gas liquids (000 BPD)
 United States 436 460
 Other Western Hemisphere 91 90
 Europe 74 81
 Other Eastern Hemisphere 178 154
 Total 779 785
 Net production of natural gas -
 available for sale (000 MCFPD)
 United States (b) 1,851 1,909
 International 233 216
 Total 2,084 2,125
 Natural gas sales (000 MCFPD)
 United States 2,781 2,875
 International 247 222
 Total 3,028 3,097
 Natural gas liquids sales
 (including purchased LPG's) (000 BPD)
 United States 183 184
 International 41 41
 Total 224 225
 Refinery input (000 BPD)
 United States 669 681
 Other Western Hemisphere 61 50
 Europe 278 292
 Other Eastern Hemisphere 412 382
 Total 1,420 1,405
 Refined product sales (000 BPD)
 United States 898 864
 Other Western Hemisphere 257 226
 Europe 441 457
 Other Eastern Hemisphere 690 646
 Total 2,286 2,193
 (A) -- Preliminary
 (B) -- U.S. natural gas sales prices averaged $1.72 for the first quarter 1992 as compared to $2.00 for the first quarter 1991.
 -0- 4/23/92
 /NOTE TO EDITORS: A copy of the first quarter tables are available upon request/
 /CONTACT: Texaco media relations 914-253-4177/
 (TX) CO: Texaco Inc. ST: New York IN: OIL SU: ERN


TS -- NY029 -- 1702 04/23/92 09:30 EDT
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