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TEXACO RESULTS FOR THE SECOND QUARTER AND FIRST HALF 1993

 WHITE PLAINS, N.Y., July 22 /PRNewswire/ -- Texaco Inc. announced today that consolidated worldwide net income for the second quarter of 1993 was $309 million, or $1.10 per share, compared with net income of $151 million, or $ .49 per share, for the second quarter of 1992. Net income for the first half of 1993 was $587 million, or $2.07 per share, as compared with $383 million, or $1.29 per share, for the first half of 1992, which excluded the cumulative effect of changes in accounting principles adopted January 1, 1992. The new accounting principles for postretirement benefits other than pensions and for income taxes resulted in a cumulative charge of $300 million, or $1.16 per share, in the first quarter 1992.
 In commenting on the second quarter's performance, Alfred C. DeCrane, Jr., Texaco's Chairman of the Board and Chief Executive Officer, stated: "Operational performance for the second quarter of 1993 benefitted from higher U.S. natural gas prices, improved product margins in Latin America and the Caltex operating areas, and productivity increases resulting from cost/expense reduction efforts. These improvements were somewhat offset by lower margins throughout the United States and in Europe, and for chemical operations worldwide."
 DeCrane further added: "The international petroleum industry is faced with continuing uncertain world economic conditions, as well as the oversupply of crude oil, which is clearly reflected by the decline of West Texas Intermediate crude oil prices of some $3 per barrel since early May. However, our corporate Quality commitment, focused on continuous improvement, has resulted in increasingly effective cost controls and operational improvements, which will be particularly important in the forward period."


OPERATING EARNINGS PETROLEUM AND NATURAL GAS
 UNITED STATES
 - Exploration and production earnings in the United States were $163 million for the second quarter of 1993 as compared to $112 million for the second quarter of 1992. Earnings increased to $296 million for the first half of 1993 from $198 million in 1992. The improvement in 1993 results was mainly due to the strengthening of natural gas prices as compared to the depressed levels experienced in 1992, particularly in the second quarter. In the second quarter 1993, crude oil prices were $1 per barrel lower than the same quarter in 1992, while average six-month prices remained flat with 1992. Earnings also were impacted by an overall decline in oil and gas production resulting from the normal maturation of producing fields.
 - Manufacturing and marketing earnings for the second quarter of 1993 were $63 million versus $77 million for the second quarter of 1992. For the first half of 1993, earnings were $116 million as compared to $155 million for the same period of 1992. The 1993 results continued to be impacted by depressed refinery margins on the East and Gulf Coasts reflecting excess supplies of refined products, as well as scheduled downtime of processing units in the U.S. refining system.
 INTERNATIONAL
 - Exploration and production earnings internationally were $82 million for the second quarter of 1993 versus $46 million for the second quarter of 1992. For the first half of 1993, results were $161 million as compared to $148 million for the first half of 1992. The results in 1993 benefitted from higher production levels in the Partitioned Neutral Zone between Kuwait and Saudi Arabia, new production in the Belida Field in Indonesia and higher crude oil prices in the Far East. These benefits were offset by lower crude oil sales volumes and prices in Europe.
 The 1993 second quarter and six months included a benefit of $6 million compared with charges of $40 million and $11 million for the second quarter and six months of 1992, respectively, relating to the currency exchange impact of the Pound Sterling on deferred income taxes.
 - Manufacturing and marketing earnings were $120 million for the second quarter of 1993, compared to $61 million for the second quarter of 1992. For the first half of 1993, results were $243 million versus $142 million for the same period of 1992. Improved results for both the second quarter and first half of 1993 reflect stronger margins in Latin America, mainly Brazil, as well as the Caltex operating areas. European margins remained at depressed levels during both 1993 and 1992. The 1992 second quarter and six months results included charges of $12 million and $3 million, respectively, relating to the currency exchange impact of the Pound Sterling on deferred income taxes. There were no such currency exchange impacts in 1993.


PETROCHEMICAL
 - Petrochemical operations reflected a loss of $7 million for the second quarter of 1993 as compared with earnings of $2 million for the same period of 1992. For the first half of 1993, this segment reflected a loss of $14 million compared to a $10 million profit for the first half of 1992. These declines are directly attributable to higher feedstock and energy costs for all product lines that were unable to be fully recovered in a period of oversupply and slack demand. Particularly hard hit have been olefins and its derivative products.


CORPORATE/NONOPERATING
 - Corporate/nonoperating net expenses continued to improve throughout 1993, resulting in first half net expenses of $210 million that were $53 million lower than the comparable 1992 period. These reductions reflect the ongoing impact of the company's expense reduction efforts and lower interest costs.


CAPITAL/EXPLORATORY EXPENDITURES
 - Worldwide capital and exploratory expenditures, including equity in such expenditures of affiliates, were $646 million for the second quarter of 1993 versus $773 million for the same quarter in 1992. Expenditures for the first six months of 1993 amounted to $1,181 million versus $1,414 million for the first half of 1992.
 The decrease in expenditures for both upstream and downstream operations as compared to 1992 reflects the generally weak conditions prevalent in the petroleum industry, as well as the completion of major downstream and chemical upgrade projects in the United States and abroad that were underway last year.
 TEXACO INC.
 Second Quarter First Half
 1993 1992(a) 1993 1992(a)
 FUNCTIONAL NET
 INCOME ($000,000)
 Operating Earnings
 (Losses)
 Petroleum and
 natural gas
 Exploration and
 production
 United States $163 $112 $296 $198
 International 82 46 161 148
 Total 245 158 457 346
 Manufacturing,
 marketing and
 distribution
 United States 63 77 116 155
 International 120 61 243 142
 Total 183 138 359 297
 Total petroleum
 and natural
 gas 428 296 816 643
 Petrochemical
 United States (9) (2) (20) 1
 International 2 4 6 9
 Total
 petrochemical (7) 2 (14) 10
 Nonpetroleum (2) (4) (5) (7)
 Total operating
 earnings 419 294 797 646
 Corporate/
 Nonoperating (110) (143) (210) (263)
 Net Income before
 cumulative effect
 of accounting
 changes $309 $151 $587 $383
 Cumulative effect of
 adoption of SFAS
 106 & 109 as of
 Jan. 1, 1992 - - - (300)
 Total net
 income $309 $151 $587 $ 83


Per common share (dollars):
 Net income before
 cumulative effect
 of accounting
 changes $1.10 $.49 $2.07 $1.29
 Cumulative effect
 of accounting
 changes - - - (1.16)
 Total net
 income $1.10 $.49 $2.07 $.13
 Average number of
 common shares
 outstanding
 (000,000) 258.8 258.6 258.8 258.6 (a) Restated to reflect accounting policy changes (SFAS 106 and 109).
 Second Quarter First Half
 1993 1992 1993 1992
 OTHER FINANCIAL
 DATA ($000,000)
 Revenues $9,065 $9,397(a) $17,584 $17,953(a)
 Total assets
 as of June 30 $26,200(b) $26,176(a)
 Stockholders'
 equity as of
 June 30 $10,198 $ 9,464(a)
 Total debt
 as of June 30 $ 6,700(b) $ 6,572
 Capital and
 exploratory
 expenditures
 Texaco Inc.
 and subsidiary
 companies
 Exploration and
 production
 United States $160 $162 $300 $ 339
 International 202 216 378 389
 Total 362 378 678 728
 Manufacturing,
 marketing and
 distribution
 United States 67 80 115 147
 International 46 72 72 129
 Total 113 152 187 276
 Petrochemical 35 68 63 101
 Other 9 14 16 26
 Total 519 612 944 1,131
 Equity in
 affiliates
 United States 40 70 77 128
 International 87 91 160 155
 Total 127 161 237 283
 Total,
 including
 equity in
 affiliates $ 646 $ 773 $ 1,181 $ 1,414
 Dividends paid
 to common
 stockholders $ 207 $ 207 $ 414 $ 414
 Dividends per
 common share
 (dollars) $ .80 $.80 $ 1.60 $ 1.60
 Dividend
 requirements
 for preferred
 stockholders $ 24 $ 25 $ 51 $ 50 (a) Restated to reflect accounting policy changes (SFAS 106 and 109) (b) Preliminary
 Second Quarter First Half
 1993 1992 1993 1992
 OPERATING DATA -
 INCLUDING
 INTERESTS
 IN AFFILIATES
 Net production
 of crude oil and
 natural gas
 liquids (000 BPD)
 United States 423 440 426 438
 Other Western
 Hemisphere (c) 20 48 21 69
 Europe 71 76 74 76
 Other Eastern
 Hemisphere 201 194 199 186
 Total 715 758 720 769
 Net production
 of natural gas -
 available for
 sale (000 MCFPD)
 United States 1,713 1,853 1,738 1,852
 International 205 191 223 212
 Total 1,918 2,044 1,961 2,064
 Natural gas
 sales (000 MCFPD)
 United States 2,745 2,798 2,762 2,789
 International 219 200 240 224
 Total 2,964 2,998 3,002 3,013
 Natural gas
 liquids sales
 (including
 purchased LPGs)
 (000 BPD)
 United States 166 176 188 179
 International 52 63 45 53
 Total 218 239 233 232
 Refinery input
 (000 BPD)
 United States 681 635 675 653
 Other Western
 Hemisphere 57 66 55 64
 Europe 314 310 322 293
 Other Eastern
 Hemisphere 378 363 405 387
 Total 1,430 1,374 1,457 1,397
 Refined product
 sales (000 BPD)
 United States 821 897 817 897
 Other Western
 Hemisphere 281 280 286 268
 Europe 465 464 472 461
 Other Eastern
 Hemisphere 704 678 731 676
 Total 2,271 2,319 2,306 2,302


(c) Texaco's concession to produce oil in Ecuador expired in June 1992; accordingly, 1993 reflects no production. Second quarter 1992 production in Ecuador was 25,000 BPD, while the first half 1992 was 46,000 BPD.
 -0- 7/22/93
 /CONTACT: Anita Larsen, 914-253-4155, Jim Swords, 914-253-4103, Cynthia Boyd, 914-253-4743, or Jim Reisler, 914-253-4389, of Texaco/
 (TX)


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

LG -- NY016 -- 4342 07/22/93 09:09 EDT
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