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TEXACO REPORTS RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 1992

 TEXACO REPORTS RESULTS FOR THE THIRD QUARTER
 AND FIRST NINE MONTHS OF 1992
 WHITE PLAINS, N.Y., Oct. 21 /PRNewswire/ -- Texaco Inc. (NYSE: TX) announced today consolidated worldwide net income of $269 million, or $.94 per share, for the third quarter of 1992 as compared to third quarter 1991 net income of $286 million, or $1.01 per share. Net income for the first nine months of 1992 was $714 million, or $2.47 per share as compared with $970 million, or $3.46 per share for the comparative period of 1991.
 Net income for the third quarter of 1992 includes the adverse impact of property damage and business interruptions (production shut-ins and refinery downtime) caused by Hurricane Andrew, which amounted to approximately $28 million, and $12 million of expenses related to the early call of high-cost debt. Third quarter 1991 results included a profit of $22 million from the sale of a non-core asset. Excluding these items, third quarter 1992 earnings were $309 million, or $1.10 per share, as compared to third quarter 1991 earnings of $264 million, or $.93 per share.
 James W. Kinnear, Texaco's president and chief executive officer stated: "Texaco's improved operational performance for the quarter reflects some benefit from strengthened crude and natural gas prices, as well as the positive effort of the organization in controlling expenses. These benefits, however, were dampened by weak refinery margins in the U.S. and major international markets."
 Kinnear added: "Faced with continued soft conditions in the refined-product market, we will maintain our emphasis on the control of costs and expenses. We also will devote the necessary resources to improving productivity, maintaining operational competitiveness and strengthening our financial position."
 Texaco's revenues for the third quarter 1992 were $10 billion, whereas revenues for the third quarter of 1991 were $9.4 billion. For the first nine months of 1992, revenues were $28 billion versus $28.6 billion for the same period of 1991.
 Operating Earnings
 Petroleum and Natural Gas
 United States
 -- Exploration and production earnings in the U.S. were $189 million for the third quarter of 1992 as compared to $129 million for the third quarter of 1991. For the nine months 1992 and 1991, earnings were $390 million and $444 million, respectively. The comparative quarterly results benefited from the strengthening of crude and natural gas prices that more than offset the impact of reduced production, including the effect of Hurricane Andrew. However, the impact of lower crude oil and natural gas production, coupled with lower crude oil prices, resulted in lower earnings for the nine months of 1992. Both the quarterly and nine month periods benefited from lower operating expenses.
 -- Manufacturing and marketing earnings for the third quarter of 1992 were $87 million versus $82 million for the third quarter of 1991. For the first nine months of 1992, earnings were $247 million as compared to $207 million for the same period of 1991. Improved product margins on the West Coast of the United States, along with higher sales volumes of branded gasoline and lower operating expenses, contributed to the positive comparison for both periods.
 International
 -- Exploration and production earnings outside the U.S. were $66 million for the third quarter of 1992 as compared to $89 million for the third quarter of 1991. For the first nine months of 1992, results were $212 million versus $245 million for the first nine months of 1991. Nine months 1992 results reflect the softness in crude oil prices prevalent in the early part of the year, partially offset by lower exploratory expenses in the U.K. North Sea. Earnings improvements from new field production in China during 1992 were somewhat offset by the impact of decreased production in Latin America. Third quarter results benefited from slightly higher prices which were more than offset by higher exploratory expenses and the impact of fluctuating currencies on deferred income taxes.
 -- Manufacturing and marketing results were $86 million for the third quarter of 1992 versus $118 million for the third quarter of 1991. For the first nine months of 1992, results were $272 million versus $458 million for the comparative period of 1991. Both the third quarter and the nine months reflect lower refined product margins in Europe. The comparative nine months also were impacted by refinery downtime in the U.K. in the first quarter of 1992, and the comparatively strong results in Japan through Caltex in the first quarter 1991.
 Petrochemical
 -- Petrochemical losses for the third quarter of 1992 were $8 million, compared to earnings of $3 million for the third quarter of 1991. Earnings for the first nine months of 1992 were $3 million, compared with $28 million for the first nine months of 1991. The decline in U.S. chemical results for the third quarter of 1992 reflects downtime on major processing units for scheduled maintenance. In addition, margins for ethylene oxide derivatives are significantly reduced in the current weak economy compared to a relatively strong market for these products in the third quarter of 1991. Improvement in international earnings was due to higher volumes and margins in the additive business.
 Corporate/Nonoperating
 -- Corporate/nonoperating results were comparatively lower in 1992, partly due to the third quarter 1991 profit of $22 million from the sale of an interest in an Australian uranium property, and third quarter 1992 charges of $12 million related to the early call of several debt issues totaling $640 million, which had an average interest rate of 9.3 percent. These issues were refinanced during the quarter as Texaco continues to restructure its debt portfolio at substantially lower rates and to lengthen maturities. Results for the first nine months of 1992 benefited from the company's concentrated expense reduction efforts that began in mid-1991.
 Capital and Exploratory Expenditures
 -- Worldwide capital and exploratory expenditures, including equity in such expenditures of affiliates, were $705 million for the third quarter of 1992 versus $835 million for the third quarter of 1991. Expenditures for the nine months of 1992 were $2,119 million versus $2,491 million for the same period of 1991. The weakness in refinery margins throughout 1992 and the very low oil and gas prices during the first half of 1992 have caused the company to reexamine its 1992 program and systematically re-prioritize the timing of projects in view of these conditions.
 Expenditures reflect lower drilling and development activity in the United States and the U.K. North Sea in 1992, as well as the 1991 acquisition of gas properties in Canada. Lower expenditures for service station acquisitions and refurbishments in the United States, as well as project completions for joint venture cogeneration facilities, were partially offset by increased investment for refinery upgrades and petrochemical facilities in the United States and abroad.
 TEXACO, INC.
 ($ in millions)
 Periods ended Third quarter Nine months
 1992 1991 1992 1991
 FUNCTIONAL NET INCOME
 Operating Earnings (Losses)
 Petroleum and natural gas
 Exploration and production
 United States $ 189 $ 129 $ 390 $ 444
 International 66 89 212 245
 Total 255 218 602 689
 Manufacturing, marketing
 and distribution
 United States 87 82 247 207
 International 86 118 272 458
 Total 173 200 519 665
 Total petroleum and
 natural gas 428 418 1,121 1,354
 Petrochemical
 United States (12) 3 (10) 22
 International 4 -- 13 6
 Total petrochemical (8) 3 3 28
 Nonpetroleum (2) (13) (9) (26)
 Total operating
 earnings 418 408 1,115 1,356
 Corporate/Nonoperating (149) (122) (401) (386)
 Total net income $ 269 $ 286 $ 714 $ 970
 Net income per common
 share (dollars) $ .94 $ 1.01 $ 2.47 $ 3.46
 Average number of
 common shares
 outstanding (000,000) 258.8 258.6 258.6 258.4
 Other Financial Data
 ($ in millions
 Third quarter Nine months
 1992 1991 1992 1991
 Revenues $10,005 $ 9,356 $27,965 $28,567
 Net Income $ 269 $ 286 $ 714 $ 970
 Total assets as of Sept. 30 $26,100(A) $25,732
 Stockholders' equity as of Sept. 30 $ 9,902 $ 9,693
 Total debt as of Sept. 30 $ 6,600(A)$ 6,502
 Capital and exploratory expenditures
 Texaco Inc. and subsidiary companies
 Exploration and production
 United States $ 123 $ 194 $ 462 $ 726
 International 217 246 606 699
 Total 340 440 1,068 1,425
 Manufacturing, marketing and
 distribution
 United States 62 82 209 238
 International 77 76 206 188
 Total 139 158 415 426
 Petrochemical 43 27 144 102
 Other 21 28 47 66
 Total 543 653 1,674 2,019
 Equity in affiliates
 United States 68 95 196 262
 International 94 87 249 210
 Total 162 182 445 472
 Total, including
 equity in
 affiliates $ 705 $ 835 $ 2,119 $ 2,491
 Dividends paid to common
 stockholders $ 207 $ 207 $ 621 $ 620
 Dividends per common
 share (dollars) $ .80 $ .80 $ 2.40 $ 2.40
 Dividend requirements for preferred
 stockholders $ 25 $ 26 $ 75 $ 77
 (A) -- Preliminary
 Third quarter Nine months
 1992 1991 1992 1991
 Operating Data - Including
 Interests in Affiliates
 Net production of crude oil and
 natural gas liquids (000 BPD)
 United States 427 462 434 461
 Other Western
 Hemisphere 20 93 53 91
 Europe 75 91 75 81
 Other Eastern
 Hemisphere 184 161 186 162
 Total 706 807 748 795
 Net production of natural gas -
 available for sale (000 MCFPD)
 United States (B) 1,732 1,943 1,812 1,953
 International 189 185 204 190
 Total 1,921 2,128 2,016 2,143
 Natural gas sales (000 MCFPD)
 United States 2,655 2,841 2,744 2,918
 International 196 187 214 195
 Total 2,851 3,028 2,958 3,113
 Natural gas liquids sales
 (including purchased LPG's)
 (000 BPD)
 United States 189 188 182 184
 International 45 47 50 45
 Total 234 235 232 229
 Refinery input (000 BPD)
 United States 659 650 655 667
 Other Western
 Hemisphere 58 47 61 42
 Europe 348 312 312 299
 Other Eastern
 Hemisphere 381 347 385 354
 Total 1,446 1,356 1,413 1,362
 Refined product sales (000 BPD)
 United States 863 864 886 874
 Other Western
 Hemisphere 283 258 274 244
 Europe 498 451 474 448
 Other Eastern
 Hemisphere 683 589 677 607
 Total 2,327 2,162 2,311 2,173
 (B) -- U.S. natural gas prices averaged $1.83 for the third quarter 1992 as compared to $1.35 for the third quarter 1991 and $1.66 for the first nine months of 1992 versus $1.61 for the first nine months of 1991.
 -0- 10/21/92
 /CONTACT: Anita Larsen, Dave Dickson, Margaret Flesher, Jim Swords, or Cynthia Boyd of Texaco, Inc., 914-253-4177/
 (TX) CO: Texaco Inc. ST: New York IN: OIL SU: ERN


TS -- NY023 -- 2718 10/21/92 09:21 EDT
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Date:Oct 21, 1992
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