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 STAMFORD, Conn., Oct. 26 /PRNewswire/ -- Tosco Corporation (NYSE: TOS) reported today net income of $27.9 million, or $0.81 per fully diluted share, on sales of $1,043.7 million for the third quarter ended Sept. 30, 1993. This compares to net income of $4.6 million, or $0.07 per fully diluted share, on sales of $516.4 million, during the same period of 1992. For the first nine months of 1993, Tosco earned $64.9 million, or $1.89 per fully diluted share, on sales of $2,416.1 million compared to $49.4 million, or $1.40 per fully diluted share, on sales of $1,325.5 million in the same period of 1992.
 Thomas D. O'Malley, Tosco Corporation's chairman and chief executive officer, stated, "We are pleased to report favorable operating and financial results at each of the company's refineries. The Bayway Refinery, in its second quarter under Tosco management, was again a major contributor, providing about a third of Tosco's consolidated operating income. Gross refining margins (per barrel sales value of refined products produced for sale minus costs of crude oil and raw materials) improved slightly at both Avon and Bayway from second quarter margins. Avon's margin improved towards the end of the third quarter in large part due to more favorable prices on California's new diesel fuel. These results are even more satisfactory given the gene ?lackluster conditions in the refining industry and given the fact that both Bayway and Avon performed some maintenance during the quarter. Repair work was done on the Bayway c?racker and at Avon certain units were removed for service temporarily in preparation for the connection to new hydrogen capacity currently under construction."
 Mr. O'Malley further stated, "Our success with Bayway further encourages us in pursuing a strategy of acquiring additional refining and marketing assets that can bo?perated profitably in today's environment. The recent announcement of our pending acquisition of BP's refining and marketing assets in Washington and Oregon is a further step in implementing this strategy."
 Tosco Corporation also announced that it has declared the quarterly dividend of $1.09375 on its Series F cumulative convertible preferred stock payable to stockholders of record on Nov. 5, 1993, for payment on Nov. 15, 1993.
 Tosco Corporation is an independent refiner that processes and markets over 400,000 barrels per day of petroleum products, with operations on both the East and West Coasts of the United States.
 Financial Summary
 (In thousands, except per-share data; unaudited)
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Sales (A)(B) $1,043,673 $516,396 $2,416,063 $1,325,542
 Operating contribution(B) 75,502 30,391 181,411 112,889
 Selling, general and
 admin. expense(C) 16,092 9,276 39,777 26,628
 Interest expense, net(D) 12,062 4,416 32,277 13,821
 Inc. from cont. opers.
 bef. inc. taxes and
 cumulative effect
 of accounting changes 47,348 16,699 109,357 72,440
 Provision for inc. taxes 19,423 6,778 44,489 29,266
 Inc. from cont. opers. bef.
 cumulative effect of
 accounting changes 27,925 9,921 64,868 43,174
 Loss from discontinued
 operations(E) -- (5,319) -- (9,976)
 Cumulative effect of changes
 in accounting for income
 taxes and turnarounds(F) -- -- -- 16,203
 Net income 27,925 4,602 64,868 49,401
 Preferred stock dividend
 requirement (2,516) (2,516) (7,548) (7,548)
 Income attributable to
 common shareholders $25,409 $2,086 $57,320 $41,853
 Earnings per common and
 common equivalent share:
 Primary $.86 $.07 $1.95 $1.40
 Fully diluted .81 .07 1.89 1.40
 Shares used in the computation
 of earnings per common and
 common equivalent share(G):
 Primary 29,415 29,481 29,397 29,910
 Fully diluted 34,311 34,273 34,312 34,702
 (A) -- On April 8, 1993, Bayway Refining Company (Bayway), a wholly owned subsidiary of Tosco, purchased of the Bayway Refinery and related facilities for approximately $327 million (including inventory). The funds for the acquisition were received from a combination of sources, including cash available to Tosco, the sale by Tosco in a private placement of $150 million of 8-1/4 percent first mortgage bonds due 2003, and borrowings under an amended and restated revolving credit agreement(D). The financial results of Bayway are included in Tosco's consolidated results of operations beginning April 8, 1993.
 (B) -- Operating contribution (income before selling, general and administrative expense, net interest expense and income taxes) by refinery for the third quarter is summarized below:
 For the three months
 ended Sept. 30, 1993 Avon Bayway Consolidated
 Sales $463,893 $579,780 $1,043,673
 Cost of sales 413,998 554,173 968,171
 Operating contribution $49,895 $25,607 $75,502
 (C) -- The increase in selling, general, and administrative expense for 1993 from the comparable periods in 1992 is primarily attributable to the acquisition of the Bayway Refinery (including approximately $0.9 million of non-recurring costs for the third quarter of 1993 ($3.7 million year-to-date).
 (D) -- The increase in net interest expense for 1993 is primarily due to higher levels of debt related to the acquisition of the Bayway Refinery(A). In addition, net interest expense for the three and nine months ended Sept. 30, 1992, includes intercompany interest income of $3.4 and $9.3 million, respectively, from Seminole Fertilizer Corporation (Seminole). Intercompany interest income for 1993 was not recorded due to the discontinued status of Seminole(E). Interest expense for the nine months ended Sept. 30, 1992, also includes the write-off of approximately $3.6 million of deferred financing costs related to previously outstanding Bank indebtedness retired in March 1992 from the proceeds of the public sale of $300 million of First Mortgage Bonds.
 (E) -- On May 4, 1993, Seminole completed the sale of its principal operating assets to Cargill Fertilizer Inc. (Cargill) for approximately $127,000,000. Prior year financial statements have accordingly been restated to reflect the operating results of the discontinued fertilizer operations separately from Tosco's continuing operations.
 (F) -- Tosco adopted Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," (electing to prospectively amortize its post-retirement benefits liability) and SFAS No. 109, "Accounting for Income Taxes", and changed its accounting policy for turnaround costs effective Jan. 1, 1992. The cumulative effect of the change in accounting for income taxes and turnaround costs for 1992 were $13 million or $.44 per share, and $3.2 million or $.11 per share, respectively.
 (G) -- A quarterly dividend of $.15 per common share was paid on Sept. 20, 1993, to shareholders of record on Sept. 30, 1993.
 Summarized Balance Sheet(A)
 (Thousands of dollars; unaudited)
 Cash, cash equivalents, short-term
 investments and deposits $83,250
 Other current assets(B) 562,062
 Current liabilities 296,269
 Working capital 349,043
 Property, plant and equipment (net) 571,727
 Other long term assets 114,121
 Long-term debt(C) 543,970
 Long-term liabilities 66,024
 Total shareholders' equity $424,897
 (A) -- The summarized balance sheet reflects the preliminary allocation of the purchase price to the assets of Bayway based upon their estimated fair values as of the date of acquisition. f?inal allocation of the purchase price will be determined during 1993 when appraisals and other studies are completed.
 (B) -- Includes inventories valued on the last-in, first out (LIFO) basis. At Sept. 30, 1993, the excess of current cost over the LIFO stated inventory amount was approximately $9 million.
 (C) -- At Sept. 30, 1993, there were cash borrowings of $87 million under Tosco's $350 million revolving credit agreement.
 Avon Refinery
 (Thousands of barrels per day)
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Crude oil refined 159.1 159.1 160.2 143.6
 Add'l refinery feed
 & blending stock 7.4 7.7 5.2 8.5
 Total input 166.5 166.8 165.4 152.1
 Petroleum products
 Gasoline 93.4 100.8 101.4 92.4
 Distillates 37.5 38.1 34.6 31.5
 Jet fuel -- -- -- .4
 Residuals 15.4 11.1 13.5 12.8
 Petroleum coke 7.8 6.7 8.0 6.8
 Propane/Propylene 4.2 3.5 3.8 4.5
 Other 6.7 3.8 2.4 1.0
 Total petroleum
 products produced 165.0 164.0 163.7 149.4
 Purchased products 56.7 68.3 41.5 52.3
 Total petroleum
 products available
 for sale 221.7 232.3 205.2 201.7
 Total petroleum
 products sold 215.5 224.3 202.0 200.1
 Sales value of refined
 products produced
 for sale(A) $22.67 $24.51 $23.10 $23.26
 Per barrel cost of
 crude oil and raw
 materials(A) 14.40 17.90 15.16 15.52
 Refining margin per
 barrel(A) $8.27 $6.61 $7.94 $7.74
 Bayway Refinery
 (Thousands of barrels per day)
 7/1/93 - 9/30/93 4/8/93 - 6/30/93
 Crude oil refined 198.3 194.9
 Add'l refinery feed &
 blending stock 56.2 58.6
 Total input 254.5 253.5
 Petroleum products produced:
 Gasoline 115.7 122.1
 Distillates 76.8 77.5
 Jet fuel 7.0 6.5
 Residuals 31.0 26.7
 Petroleum coke -- --
 Propane/Propylene 9.5 11.0
 Other 19.8 14.6
 Total petroleum products
 produced 259.8 258.4
 Purchased products 55.7 38.5
 Total petroleum products
 available for sale 315.5 296.9
 Total petroleum products sold 312.5 289.0
 Sales value of refined products
 produced for sale(A) $21.68 $22.50
 Per barrel cost of crude oil
 and raw materials(A) 18.18 19.04
 Refining margin per barrel(A) $3.50(B) $3.46(B)
 (A) -- Restated 1992 data to include the sales value of intermediates and gasoline blendstocks and raw materials other than crude oil over total raw materials processed.
 (B) -- Includes net realized gains on hedges designed to lock in a predetermined level of refining margins on a percentage of the Bayway Refinery's production.
 -0- 10/26/93
 /CONTACT: Jefferson F. Allen or Daniel P. Mulderry of Tosco, 203-977-1000/

CO: Tosco Corporation ST: Connecticut IN: OIL SU: ERN DIV

CK -- NY004 -- 6742 10/26/93 09:05 EDT
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Date:Oct 26, 1993

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