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TEXACO REPORTS RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF 1993

 WHITE PLAINS, N.Y., Oct. 20 /PRNewswire/ -- Texaco Inc. (NYSE: TX) today that consolidated worldwide net income from continuing operations (including special gains and charges) for the third quarter of 1993 was $317 million, or $1.13 per share, compared with net income of $325 million, or $1.16 per share, for the third quarter of 1992. Comparable net income for the first nine months of 1993 was $910 million, or $3.22 per share, as compared with $697 million, or $2.41 per share, for the first nine months of 1992.
 These earnings are before the 1992 cumulative effect of changes in accounting principles and exclude the results of those chemical operations which are accounted for as discontinued operations. Texaco recently entered into a memorandum of understanding to sell its worldwide chemical operations for $1.05 billion. The sale is expected to take place on January 1, 1994, subject to the signing of a definitive agreement and securing necessary governmental approvals.
 ? Third Quarter Nine Months
 Texaco Inc. (Millions): 1993 1992 1993 1992
 Net income from continuing
 operations before tax
 law changes and
 special items $ 255 $ 338 $ 848 $ 710
 Tax law changes 152 - 152 -
 Special charges (235) (13) (235) (13)
 Tax benefit on asset sale 145 - 145 -
 Total net income from
 continuing operations 317 325 910 697
 Discontinued chemical
 operations:
 Income (Loss) from
 operations (11) (9) (17) 2
 Loss on disposal of
 business (164) - (164) -
 Cumulative effect of
 changes in accounting
 principles as of
 January 1, 1992 - - - (300)
 Total net income $ 142 $ 316 $ 729 $ 399
 Net income for the first nine months of 1992 included the cumulative effect of changes in accounting principles for post-retirement benefits other than pensions and for income taxes, which resulted in a charge of $300 million, or $1.16 per share, in the first quarter 1992.
 In commenting on the third quarter's performance, Alfred C. DeCrane, Jr., Texaco's Chairman of the Board and Chief Executive Officer, stated: "The solid third quarter performance in the face of more than a $4 per barrel decrease in crude oil prices confirms the value and success of our programs to streamline our business processes and focus operations and reduce overhead. These efforts complemented improved downstream margins in Latin America, the Pacific Rim and certain areas of the United States. Although recent worldwide market adjustments have resulted in some improvement in crude oil prices, product margins in many markets still show only moderate improvement due to sluggish demand."
 Net income for the third quarter and nine months 1993 included $145 million of deferred tax benefits relating to a planned sale of an interest in a subsidiary, as well as $152 million of net deferred tax benefits arising from tax law changes in the third quarter. These tax law changes include the effect of changes in the U.K. Petroleum Revenue Tax relating to the taxability of certain items and a tax rate reduction from 75 percent to 50 percent, which were partially offset by a charge resulting from the increase in the U.S. tax rate to 35 percent retroactive to January 1, 1993.
 The third quarter and nine months 1993 also included special charges of $235 million. These charges include costs of $62 million related to staff reductions, $86 million in reserves related to environmental remediation for U.S. refineries, marketing facilities and Superfund sites, and $73 million in asset writedowns, principally in the North Sea, brought about by a change in the Petroleum Revenue Tax. The third quarter and nine months 1992 included $13 million of special charges.
 OPERATING EARNINGS FROM CONTINUING OPERATIONS
 PETROLEUM AND NATURAL GAS
 UNITED STATES
 Third Quarter Nine Months
 Exploration & Production 1993 1992 1993 1992
 (Millions):
 Operating earnings from
 continuing operations,
 before tax law change and
 special charges $ 138 $ 193 $ 434 $ 391
 Tax law change (32) - (32) -
 Special charges (6) (6) (6) (6)
 Total operating earnings $ 100 $ 187 $ 396 $ 385
 Lower overall crude oil prices of $4.26 per barrel for the comparative third quarters more than offset the benefits from higher natural gas prices and reduced operating expenses in the third quarter 1993. The nine-month results improved due to higher natural gas prices and lower expenses. Earnings in 1993 also were impacted by a decline in oil and gas production resulting from the normal maturation of producing fields, which only was partly offset by production from new fields.
 The third quarter and nine months 1993 included a deferred tax charge of $32 million due to the increase in the U.S. tax rate to 35 percent effective January 1, 1993, and special charges related to staff reductions. Special charges in 1992 resulted from damage caused by Hurricane Andrew.
 Third Quarter Nine Months
 Manufacturing & Marketing 1993 1992 1993 1992
 (Millions):
 Operating earnings from
 continuing operations,
 before tax law change and
 special charges $ 99 $ 83 $ 206 $ 235
 Tax law change (4) - (4) -
 Special charges (87) - (87) -
 Total operating earnings $ 8 $ 83 $ 115 $ 235
 Third quarter 1993 earnings reflected improved downstream margins in the U.S., particularly on the East Coast, although overall improvements were moderated by refinery downtime. The decrease in nine months 1993 results reflects the impact of depressed margins in the East and Gulf Coasts during the first six months of the year.
 The third quarter and nine months 1993 included a charge of $4 million due to the increase in the U.S. tax rate to 35 percent effective January 1, 1993, and special charges for anticipated staff reductions, as well as reserves established for probable environmental remediation.
 INTERNATIONAL
 Third Quarter Nine Months
 Exploration & Production 1993 1992 1993 1992
 (Millions):
 Operating earnings from
 continuing operations,
 before tax law change and
 special charges $ 15 $ 98 $ 176 $ 246
 Tax law change 169 - 169 -
 Special charges (59) - (59) -
 Total operating earnings $ 125 $ 98 $ 286 $ 246
 Third quarter and nine month 1993 results reflect the impact of lower worldwide crude oil prices and higher exploratory expenses, partially offset by new production from the Belida field in Indonesia and higher production in the Partitioned Neutral Zone between Kuwait and Saudi Arabia. The 1992 third quarter and nine months included benefits of $34 million and $23 million respectively, relating to the currency exchange impact of the Pound Sterling on
deferred income taxes. In 1993 there were no such benefits.
 The third quarter and nine months 1993 included a benefit of $169 million related to the change in the taxability of certain items under the U.K. Petroleum Revenue Tax and the tax rate reduction of this tax from 75 percent to 50 percent. Special charges in 1993 related to staff reductions and the reduction in the carrying value of certain assets, principally in the North Sea, brought about by a change in the Petroleum Revenue Tax laws.
 Third Quarter Nine Months
 Manufacturing & Marketing 1993 1992 1993 1992
 (Millions):
 Operating earnings from
 continuing operations,
 before special charges $ 101 $ 107 $ 344 $ 249
 Special charges (30) - (30) -
 Total operating earnings $ 71 $ 107 $ 314 $ 249
 Earnings in both third quarter and nine months of 1993 reflect strong margins in Latin America, mainly Brazil, as well as the Caltex operating areas. Partially offsetting these benefits was the impact of continuing depressed European margins and refinery downtime, which primarily affected the third quarter.
 The third quarter and nine months 1993 included special charges related to staff reductions and the reduction in the carrying value of certain assets, primarily related to the planned disposition of the marketing operations in Nigeria.
 CORPORATE/NON-OPERATING RESULTS FROM CONTINUING OPERATIONS
 Third Quarter Nine Months
 (Millions): 1993 1992 1993 1992
 Results from continuing
 operations, before tax
 law change and special
 items $ (96) $ (148) $(304) $(409)
 Tax law change 23 - 23 -
 Special charges (53) - (53) -
 Tax benefit on asset sale 145 - 145 -
 Total corporate/
 non-operating $ 19 $ (148) $(189) $(409)
 Results for the third quarter of 1993 were improved over 1992 due to the ongoing impact of the company's productivity improvements and expense reduction efforts, lower interest costs and non-recurring 1992 charges of $15 million related to the early call of several debt issues.


DISCONTINUED CHEMICAL OPERATIONS
 On September 13, 1993, Texaco announced its intent to sell substantially all of its worldwide petrochemical interest to an affiliate of the Jon M. Huntsman Group of Companies. The projected effects of this proposed sale, coupled with the writedown of certain marginal assets, including the previously announced withdrawal from the ethyleneamine business, amount to $164 million and have been recorded as a loss on disposal of business under Discontinued Operations. The $17 million loss from chemical operations for the first nine months of 1993 includes a third quarter deferred tax charge of $5 million due to the increase in the U.S. income tax rate. The remaining loss from operations was attributable to higher feedstock and energy costs for all product lines that could not be fully recovered in a period of oversupply and slack demand.


CAPITAL AND EXPLORATORY EXPENDITURES WORLDWIDE
 Capital and exploratory expenditures from continuing operations, including equity in such expenditures of affiliates, were $1,865 million for the first nine months of 1993, as compared with $2,004 million for the same period in 1992. Expenditures from continuing operations for the third quarter of 1993 amounted to $732 million versus $672 million for the same quarter in 1992.
 Expenditures for both periods of 1993, as compared to 1992, reflect the completion of refinery upgrade projects in the United States, mainly Texaco's affiliate Star Enterprise and in the United Kingdom, which were underway in 1992, as well as generally lower international marketing expenditures.
 Upstream operations in the United States reflected increased drilling and development expenditures as compared to 1992 as a result of higher third quarter 1993 activity.
 Third Quarter Nine Months
 1993 1992(b) 1993 1992(b)
 FUNCTIONAL NET INCOME ($000,000)
 Operating Earnings (Losses) from
 continuing operations (a)
 Petroleum and natural gas
 Exploration and production
 United States $ 100 $ 187 $ 396 $ 385
 International 125 98 286 246
 Total 225 285 682 631
 Manufacturing, marketing
 and distribution
 United States 8 83 115 235
 International 71 107 314 249
 Total 79 190 429 484
 Total petroleum
 and natural gas 304 475 1,111 1,115
 Non-petroleum (6) (2) (12) (9)
 Total operating
 earnings 298 473 1,099 1,106
 Corporate/Non-operating (a) 19 (148) (189) (409)
 Net Income from
 continuing operations 317 325 910 697
 Discontinued chemical operations
 Net income (Loss)
 from operations (11) (9) (17) 2
 Net loss on disposal (164) - (164) -
 (175) (9) (181) 2
 Cumulative effect of adoption
 of SFAS 106 and 109 as of
 January 1, 1992 - - - (300)
 Total net income $ 142 $ 316 $ 729 $ 399
 Per common share (dollars):
 Net income (Loss) before
 cumulative effect of
 accounting changes:
 Continuing operations $ 1.13 $ 1.16 $ 3.22 $ 2.41
 Discontinued
 operations (.68) (.04) (.70) -
 Cumulative effect of
 accounting changes - - - (1.16)
 Total net income $ .45 $ 1.12 $ 2.52 $ 1.25
 Average number of
 common shares
 outstanding (000,000) 259.0 258.8 258.9 258.6
 (a) Includes special gains and charges; see page 10 for detailed analysis.
 (b) Restated to reflect accounting policy changes (SFAS 106 & 109) and separate identification of discontinued chemical operations, as appropriate.
 Third Quarter Nine Months
 1993 1992(b) 1993 1992(b)


OTHER FINANCIAL DATA ($000,000)
 Revenues from continuing
 operations $ 8,479 $ 9,758 $25,441 $27,077
 Total assets as of Sept. 30 (c) $26,200 $26,200
 Stockholders' equity as of Sept. 30 $10,133 $ 9,594
 Total debt as of Sept. 30 (c) $ 6,700 $ 6,574
 Capital and exploratory expenditures
 Texaco Inc. and subsidiary companies
 Exploration and production
 United States $ 216 $ 123 $ 516 $ 462
 International 212 217 590 606
 Total 428 340 1,106 1,068
 Manufacturing, marketing
 and distribution
 United States 102 72 232 238
 International 61 77 133 206
 Total 163 149 365 444
 Other 10 21 26 47
 Total Texaco Inc.
 and subsidiaries 601 510 1,497 1,559
 Equity in affiliates
 United States 34 68 111 196
 International 97 94 257 249
 Total equity
 in affiliates 131 162 368 445
 Total continuing
 operations 732 672 1,865 2,004
 Discontinued
 chemical operations 6 33 54 115
 Total $ 738 $ 705 $ 1,919 $ 2,119
 Dividends paid to common
 stockholders $ 207 $ 207 $ 621 $ 621
 Dividends per
 common share (dollars) $ .80 $ .80 $ 2.40 $ 2.40
 Dividend requirements
 for preferred
 stockholders $ 26 $ 25 $ 77 $ 75
 (b) Restated to reflect accounting policy changes (SFAS 106 and 109) and separate identification of discontinued chemical operations, as appropriate.
 (c) Preliminary
 Third Quarter Nine Months
 1993 1992 1993 1992
 OPERATING DATA - INCLUDING
 INTERESTS IN AFFILIATES
 Net production of crude oil
 and natural gas liquids
 (000 BPD)
 United States 427 427 426 434
 Other Western
 Hemisphere (d) 21 20 21 53
 Europe 82 75 76 75
 Other Eastern Hemisphere 198 184 199 186
 Total 728 706 722 748
 Net production of natural
 gas - available for sale
 (000 MCFPD)
 United States 1,716 1,732 1,730 1,812
 International 218 189 222 204
 Total 1,934 1,921 1,952 2,016
 Natural gas sales (000 MCFPD)
 United States 2,740 2,655 2,755 2,744
 International 224 196 234 214
 Total 2,964 2,851 2,989 2,958
 Natural gas liquids sales
 (including purchased LPGs)
 (000 BPD)
 United States 191 189 189 182
 International 63 45 51 50
 Total 254 234 240 232
 Refinery input (000 BPD)
 United States 633 659 661 655
 Other Western Hemisphere 45 58 52 61
 Europe 341 348 328 312
 Other Eastern Hemisphere 394 381 402 385
 Total 1,413 1,446 1,443 1,413
 Refined product sales
 (000 BPD)
 United States 828 863 821 886
 Other Western Hemisphere 282 283 285 274
 Europe 502 498 482 474
 Other Eastern Hemisphere 671 683 711 677
 Total 2,283 2,327 2,299 2,311
 (d) Texaco's concession to produce oil in Ecuador expired in


June 1992. Accordingly, 1993 reflects no production. For the first nine months of 1992, Texaco's production in Ecuador amounted to 30,000 BPD.
 Impact of Special Items On Functional Net Income ($000,000)
 Third Quarter Nine Months
 1993 1992(b) 1993 1992(b)
 Operating Earnings (Losses)
 from continuing operations
 Exploration and production
 United States
 Operating earnings
 before spec. items $ 138 $ 193 $ 434 $ 391
 Tax law change and
 special charges (38) (6) (38) (6)
 Total operating
 earnings 100 187 396 385
 International
 Operating earnings
 before spec. items 15 98 176 246
 Tax law change and
 special charges 110 - 110 -
 Total operating
 earnings 125 98 286 246
 Manufacturing, marketing
 and distribution
 United States
 Operating earnings
 before spec. items 99 83 206 235
 Tax law change and
 special charges (91) - (91) -
 Total operating
 earnings 8 83 115 235
 International
 Operating earnings
 before spec. items 101 107 344 249
 Special charges (30) - (30) -
 Total operating
 earnings 71 107 314 249
 Non-petroleum
 Operating earnings
 before spec. items (2) 5 (8) (2)
 Tax law change and
 special charges (4) (7) (4) (7)
 Total operating
 earnings (6) (2) (12) (9)
 Corporate/Non-operating
 Total before spec. items (96) (148) (304) (409)
 Tax benefits and
 special charges 115 - 115 -
 Total Corporate/
 Non-operating 19 (148) (189) (409)
 Net Income from continuing
 operations 317 325 910 697
 Third Quarter Nine Months
 1993 1992(b) 1993 1992(b)
 Discontinued chemical
 operations
 Net income (Loss)
 from operations (11) (9) (17) 2
 Net loss on disposal (164) - (164) -
 Net Income (Loss) from
 discontinued operations (175) (9) (181) 2
 Cumulative effect of adoption
 of SFAS 106 and 109 as of
 January 1, 1992 - - - (300)
 Total Net Income,
 as reported $ 142 $ 316 $ 729 $ 399
 (b) Restated to reflect accounting policy changes (SFAS 106 & 109) and separate identification of discontinued chemical operations, as appropriate.
 -0- 10/20/93
 /CONTACT: Dave Dickson, 914-253-4128; or Jim Swords, 914-253-4103/
 (TX)


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

DH -- NY060 -- 4564 10/20/93 12:16 EDT
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Date:Oct 20, 1993
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