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TEXACO REPORTS RESULTS FOR THE FIRST QUARTER 1993

 WHITE PLAINS, N.Y., April 22 /PRNewswire/ -- Texaco Inc. (NYSE: TX) announced today that consolidated worldwide net income for the first quarter of 1993 was $278 million, or $0.97 per share, compared with net income for the first quarter 1992 of $232 million, or $0.80 per share, which excluded the cumulative effect of changes in accounting principles. The accounting changes implemented pursuant to adoption of SFAS 106 - Employers' Accounting for Postretirement Benefits Other Than Pensions and SFAS 109 - Accounting for Income Taxes resulted in a cumulative charge of $300 million, or $1.16 per share. Net income for the first quarter 1992 was restated for the accounting changes.
 TEXACO INC.
 (in $ millions except per share data)
 First Quarter
 1993 1992
 Net income before accounting changes $ 278 $ 232
 Cumulative effect of changes in
 accounting principles as of
 Jan. 1, 1992 - (300)
 Total net income/(loss) $ 278 $ (68)
 Earnings/(Loss) per share $0.97 $(0.36)
 In commenting on the first quarter performance, Alfred C. DeCrane, Jr., Texaco's chairman of the board and chief executive officer, noted: "While Texaco's operational performance for the first quarter of 1993 benefitted from higher U.S. crude and natural gas prices, as well as improved product margins in Latin America and the Caltex operating areas, results also benefitted from operational improvements and cost reductions. These improvements were offset in some measure by reduced production, weak refinery margins on the U.S. East Coast and Gulf Coast, and depressed chemical margins."
 DeCrane added: "During this period of continuing weak demand for petroleum products caused by the sluggishness in many of the world economies, Texaco has been able to contain its costs and expenses and maintain its operational competitiveness through improvements in business processes."
 Texaco's revenues for the first quarter 1993 were $8.5 billion as compared to $8.6 billion for the first quarter 1992.
 OPERATING EARNINGS
 PETROLEUM AND NATURAL GAS
 UNITED STATES
 Exploration and production earnings were $133 million for the first quarter 1993 as compared to $86 million for the first quarter 1992. Earnings benefitted from higher prices for both crude oil and natural gas and lower operating expenses. Oil production from new fields offset much of the decline in maturing fields.
 Manufacturing and marketing earnings were $53 million for the first quarter 1993 as compared to $78 million for the first quarter 1992. The comparative first quarter results were impacted by very depressed refinery margins on the East Coast and Gulf Coast, partially due to an excess of supply in the market. Although impacted by some refinery downtime, the West Coast operations did show improved margins.
 INTERNATIONAL
 Exploration and production earnings were $79 million for the first quarter 1993, as a result of higher production levels in the Partitioned Neutral Zone between Kuwait and Saudi Arabia, and new production from the Belida field in Indonesia. The first quarter 1992 results of $102 million included currency gains from lower U.K. deferred taxes due to the weakness of the Pound Sterling versus the U.S. Dollar, which contributed $29 million. There were no such gains in the first quarter 1993.
 Manufacturing and marketing earnings were $123 million for the first quarter 1993 versus $81 million for the first quarter 1992. Results for the first quarter of 1993 improved primarily from strengthening margins in Latin America and the Caltex operating areas. However, refining margins in Europe were depressed. The 1992 quarter included $9 million in gains relating to deferred income taxes, also due to the weakness of the Pound Sterling, while there were no such gains in the first quarter 1993.
 PETROCHEMICAL
 Petrochemical results were a loss of $7 million for the first quarter 1993, compared to earnings of $8 million for the first quarter 1992. The first quarter results of 1993 reflect depressed margins for commodity chemicals due to the slow U.S. economy, higher raw material costs and overcapacity in the chemical industry.
 CORPORATE/NONOPERATING
 Corporate/nonoperating net expenses for 1993 of $100 million were $20 million lower than the 1992 quarter, primarily due to the impact of additional reductions in overhead expenses.
 CAPITAL AND EXPLORATORY EXPENDITURES
 Worldwide capital and exploratory expenditures, including equity in such expenditures of affiliates, were $535 million for the first quarter 1993, compared to $641 million for the first quarter 1992. The decrease in 1993 expenditures as compared to 1992 resulted mainly from the completion of refinery upgrade projects in the United States and the United Kingdom, which were underway last year and lower drilling and development expenditures in the U.S. due to the timing of planned 1993 expenditures.
 FUNCTIONAL NET INCOME
 ($000,000)
 First Quarter
 1993 1992 (A)
 Operating Earnings (Losses)
 Petroleum and natural gas
 Exploration and production
 United States $ 133 $ 86
 International 79 102
 Total 212 188
 Manufacturing, marketing and
 distribution
 United States 53 78
 International 123 81
 Total 176 159
 Total petroleum and natural gas 388 347
 Petrochemical
 United States (11) 3
 International 4 5
 Total petrochemical (7) 8
 Nonpetroleum (3) ( 3)
 Total operating earnings 378 352
 Corporate/Nonoperating (100) (120)
 Net Income before cumulative effect
 of accounting changes 278 232
 Cumulative effect of adoption of
 SFAS 106 & 109 as of Jan. 1, 1992 - (300)
 Total net income/(loss) $ 278 $ (68)
 Per common share (dollars):
 Net income before cumulative
 effect of accounting changes $ 0.97 $ 0.80
 Cumulative effect of accounting
 changes - (1.16)
 Total net income/(loss) $ 0.97 $(0.36)
 Average number of common shares
 outstanding (000,000) 258.8 258.5
 (A) Restated to reflect accounting policy changes (SFAS 106 and
 109).
 OTHER FINANCIAL DATA
 ($000,000)
 First Quarter
 1993 1992
 Revenues $ 8,519 $ 8,556 (A)
 Total assets as of March 31 (B) $26,000 $25,683 (A)
 Stockholders' equity as of
 March 31 $10,060 $ 9,513 (A)
 Total debt as of March 31 (B) $ 6,700 $ 6,551
 Capital and exploratory expenditures
 Texaco Inc. and subsidiary companies
 Exploration and production
 United States $ 140 $ 177
 International 176 173
 Total 316 350
 Manufacturing, marketing and
 distribution
 United States 48 67
 International 26 57
 Total 74 124
 Petrochemical 28 33
 Other 7 12
 Total 425 519
 Equity in affiliates
 United States 37 58
 International 73 64
 Total 110 122
 Total, including equity
 in affiliates $ 535 $ 641
 Dividends paid to common
 stockholders $ 207 $ 207
 Dividends per common share
 (dollars) $ 0.80 $ 0.80
 Dividend requirements for preferred
 stockholders $ 27 $ 25
 (A) Restated to reflect accounting policy changes (SFAS 106 and
 109).
 (B) Preliminary
 OPERATING DATA - INCLUDING INTERESTS IN AFFILIATES
 First Quarter
 1993 1992
 Net production of crude oil and
 natural gas liquids (000 BPD)
 United States 428 436
 Other Western Hemisphere (C) 20 91
 Europe 77 74
 Other Eastern Hemisphere 200 178
 Total 725 779
 Net production of natural gas -
 available for sale (000 MCFPD)
 United States 1,704 1,851
 International 242 233
 Total 1,946 2,084
 Natural gas sales (000 MCFPD)
 United States 2,780 2,781
 International 260 247
 Total 3,040 3,028
 Natural gas liquids sales
 (including purchased LPGs) (000 BPD)
 United States 210 183
 International 38 41
 Total 248 224
 Refinery input (000 BPD)
 United States 668 669
 Other Western Hemisphere 54 61
 Europe 329 278
 Other Eastern Hemisphere 434 412
 Total 1,485 1,420
 Refined product sales (000 BPD)
 United States 812 898
 Other Western Hemisphere 290 257
 Europe 479 457
 Other Eastern Hemisphere 761 674
 Total 2,342 2,286
 (C) Texaco's concession to produce oil in Ecuador expired in June 1992. The first quarter 1993 reflects no production, as compared to the first quarter 1992 production of 67,000 BPD.
 -0- 4/22/93
 /CONTACT: Dave Dickson, 914-253-4128, or Jim Swords, 914-253-4103, both of Texaco/
 (TX)


CO: Texaco Inc. ST: New York IN: OIL SU: ERN

SH -- NY020 -- 9229 04/22/93 09:24 EDT
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Date:Apr 22, 1993
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