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TOSCO REPORTS RESULTS

 STAMFORD, Conn., Feb. 10 /PRNewswire/ -- Tosco Corporation (NYSE: TOS) reported today net income for the year ended Dec. 31, 1992, of $30.5 million on sales of $2.16 billion, with earnings per fully diluted share of $0.69. These results, which are net of a pre-tax $25 million non-cash environmental reserve, compare with 1991 net income of $75.4 million on sales of $1.98 billion, with earnings per fully diluted share of $2.35.
 The net loss for the fourth quarter, after the environmental reserve, was $18.9 million or $0.73 per share, on sales of $600.7 million. This compares to net income of $33.5 million or $0.96 per fully diluted share on sales of $484.7 million during the same period in 1991.
 Thomas D. O'Malley, Tosco's chairman and chief executive officer, stated, "The fourth quarter's poor operating results were due to extremely weak margins at Seminole Fertilizer's phosphate fertilizer business combined with weak fourth quarter margins at Tosco's Avon refining operation. Furthermore, in view of poor December margins, maintenance at the Avon refinery scheduled for early 1993 was accelerated into December, negatively impacting fourth quarter results. Refining margins have improved and we expect better results for the first quarter of 1993."
 During the fourth quarter, the company also established a $25 million reserve for future environmental expenditures, primarily at its Avon refinery. These reserves are to cover cash expenditures anticipated to be made in future years. Tosco currently believes that this reserve will be adequate to cover the work that must be undertaken. However, future investigative work, regulatory requirements and changes in technology may impact the actual level of spendin ?Due to uncertainties of litigation, this reserve does not take into account prospective recovery from two previous owners of the Avon refinery, as a disagreement as to each party's responsibilities and obligations is the subject of current litigation. Tosco expects to prevail in these actions, and if so, will recover a substantial portion of any future environmental expenses, as well as a portion of costs expended in the past.
 Tosco adopted, retroactive to the beginning of 1992, new accounting standards dealing with employers' accounting for post retirement benefits other than pensions (SFAS No. 106) and accounting for income taxes (SFAS No. 109), as well as a change in how Tosco accounts for major maintenance at its refinery. The most obvious effect of these accounting changes is that Tosco now provides in its financial accounts for a full tax rate against its earnings. It should be noted however, that the continued use of existing federal net operating loss carryforwards will mean that Tosco still expects to pay cash taxes at a rate of approximately 11 percent throughout 1993, as it did in 1992.
 Tosco also reported that it has received several indications of interest for the purchase of its wholly-owned subsidiary, Seminole Fertilizer Corporation, located in Bartow, Fla. Mr. O'Malley said, "We are actively exploring these and other possibilities for Seminole. Tosco is presently acquiring the Bayway Refinery in Linden, N.J., which would double the size of the company. We are focusing our energies and assets on completing this expansion of our core refining business. We have not yet decided on the appropriate course of action regarding Seminole and there is no assurance a transaction will take place or on what terms. While it may be a difficult time in the industry to realize the full value of the fertilizer assets, we believe Tosco's concentration on it's refining business is a strong positive, notwithstanding the unsettled conditions in our business at this time."
 Tosco Corporation is a large independent refiner and wholesale marketer of petroleum products on the West Coast of the United States and internationally, and is also one of the largest U.S. manufacturers and international wholesale distributors of phosphate-based fertilizer products.
 TOSCO CORPORATION AND SUBSIDIARIES
 Financial Summary
 (Unaudited -- In thousands, except per share data)
 Period ended Three Months Year
 Dec. 31, 1992 1991 1992 1991
 Sales (A) $600,674 $484,696 $2,155,040 $1,979,700
 Selling, general
 and administrative
 expense (B) 13,359 11,343 44,072 32,723
 Interest expense,
 net (C) 8,633 6,358 33,369 35,749
 Income (loss) before
 environmental
 reserves, income
 taxes and cumulative
 effect of accounting
 changes (6,315) 41,586 49,484 82,374
 Environmental
 reserves (D) 25,000 4,000 25,000 4,000
 Income (loss) before
 income taxes and
 cumulative effect
 of accounting
 changes (D and F) (31,315) 37,586 24,484 78,374
 Provision (credit)
 for income
 taxes (E and F) (12,459) 4,114 10,142 3,010
 Income (loss)
 before cumulative
 effect of
 accounting
 changes (18,856) 33,472 14,341 75,364
 Cumulative effect
 of changes in
 accounting for
 income taxes and
 turnarounds (F) -- -- 16,203 --
 Net income (loss) (18,856) 33,472 30,544 75,364
 Preferred stock
 dividend
 requirements (G) (2,515) (2,513) (10,063) (3,771)
 Income (loss)
 attributable
 to common
 shareholders ($ 21,371) $ 30,959 $ 20,481 $ 71,593
 Earnings (loss) per
 common and common
 equivalent share:
 Primary ($ .73) $ 1.03 $ .69 $ 2.39
 Fully diluted ($ .73) $ .96 $ .69 $ 2.35
 Shares used in the
 computation of
 earnings (loss)
 per common and
 common equivalent
 share:
 Primary (G) 29,294 30,008 29,745 29,965
 Fully diluted (G) 29,294 34,870 29,745 32,074
 NOTES:
 (A) The increase in sales for the three months ended Dec. 31, 1992, from the comparable period in 1991 is primarily due to Tosco's expanded commercial activities.
 (B) The increase in selling, general, and administrative expense for the fourth quarter of 1992 is primarily due to higher costs of professional services (primarily legal fees and expenses related to Tosco's lawsuit against the former owners of the Avon Refinery over environmental costs ($2.5 million)), workers compensation and general liability insurance ($.7 million), and Tosco's expanded commercial activities and evaluation of potential business ventures. These increases were partially offset by lower provisions for incentive compensation and supplemental retirement benefits of $1.8 million.
 The increase in selling, general, and administrative expense for the year ended Dec. 31, 1992, is attributable to higher costs of professional services ($3.6 million), workers compensation and general liability insurance ($1.0 million), as well as the full year costs of Tosco's expanded commercial activities. Selling, general, and administrative expense for the year ended Dec. 31, 1991, were reduced by a pre-tax gain of $1.5 million from the early retirement of $50 million of Seminole's subordinated debt in August 1991.
 (C) The increase in net interest expense for the fourth quarter of 1992 from the comparable 1991 period is due to higher levels of outstanding debt during the period.
 Interest expense for the year ended Dec. 31, 1992, includes the writeoff of approximately $3.6 million of deferred financing costs related to the refinancing, at lower interest rates, of previously outstanding bank indebtedness in March 1992 from the proceeds of the public sale of $300 million of First Mortgage Bonds. Without the writeoff, interest expense for the 1992 would have been approximately $6.1 million lower than 1991 due to lower interest rates and higher levels of invested cash.
 (D) During the fourth quarter of 1992, Tosco recorded a $25 million accrual for environmental costs based upon a determination that investigative work and remedial actions, primarily related to the Avon refinery, will be required in the future. The anticipated remedial actions are subject to negotiation with governmental agencies and therefore the timing of actual cash expenditures is uncertain, but will be spread over a number of years. In addition, further investigative work and negotiations with governmental agencies may result in additional remedial actions which Tosco cannot presently predict. However, Tosco believes a substantial portion of future environmental costs, as well as environmental expenditures previously made, will be recovered from other responsible parties under contractual agreements and existing laws and regulations. A trial on these matters is presently scheduled for April 1993. While Tosco expects to prevail, expected recoveries have not been taken into account in establishing the accrual due to the adversarial positions of the other responsible parties and the uncertainties of litigation.
 Results of operations for the three months and year ended Dec. 31, 1992, include a LIFO credit of approximately $2.5 million. Results of operations for the three months and year ended Dec. 31, 1991, included a LIFO credit of approximately $6.9 as well as a $4.0 million charge for environmental costs.
 (E) The provision for federal income taxes for the three months and year ended Dec. 31, 1991, reflects the tax benefit arising from the utilization of Tosco's available federal net operating loss (NOL) carryforwards. The provision for income taxes for the year ended Dec. 31, 1991, also reflects the reversal of approximately $5.8 million of previously accrued state income taxes for 1990.
 (F) Effective retroactive to Jan. 1, 1992, Tosco adopted Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" and SFAS No. 109, "Accounting for Income Taxes." Tosco also changed its accounting policy for turnaround costs to one that results in the deferral and subsequent amortization of turnaround costs incurred on all significant refinery processing units. Quarterly earnings for 1992 have therefore been restated (see table).
 Under SFAS 106, the estimated cost of retiree benefits other than pensions will be accrued during the employees' active service period. The cost of these benefits, primarily health care, was previously expensed when incurred. Tosco elected to prospectively recognize its accumulated postretirement benefits liability of $33 million as of Jan. 1, 1992 ($26 million as of Jan. 1, 1993). The cost of retiree benefits, including the amortization of the $33 million liability, was $3.1 million ($1.9 million after tax) or $.06 per share, for 1992.
 Under SFAS 109, the new standard of accounting for income taxes, Tosco's deferred income tax liabilities are adjusted for the estimated future tax effects attributable to "temporary differences" (differences between book and tax bases of assets and liabilities) at enacted tax rates. The cumulative effect of this change in accounting method as of Jan. 1, 1992, was an increase in net income of $13 million or $.44 per share. Quarterly results of operations for 1992 have been restated to reflect income taxes at regular, rather than minimum, tax rates.
 The change in accounting for turnarounds provides for a better matching of turnaround costs with revenues. The cumulative effect of this accounting change resulted in an increase in earnings (net of income taxes of $2.2 million) of $3.2 million or $.11 per share. Excluding the cumulative effect, this change increased net income for 1992 by $4.0 million or $.14 per share.
 (G) In August 1991, Tosco issued 2,300,000 shares of Series F cumulative convertible preferred stock (Series F stock) for an aggregate value of $115 million. The Series F stock is convertible at a rate of 2.0833 shares of common stock for each share of Series F stock, equivalent to a conversion price of $24.00 per share. For the quarter and year ended Dec. 31, 1992, dividends of approximately $2.5 million and $10.1 million, respectively, were paid on the Series F stock which decreased earnings per share.
 A quarterly dividend of $.15 per share of common stock was paid on Dec. 30, 1992 to shareholders of record on Dec. 18, 1992.
 TOSCO CORPORATION AND SUBSIDIARIES
 Financial Summary
 (Unaudited -- In thousands, except per share data)
 For the Three Months Ended
 March 31, June 30, Sept. 30,
 1992 1992 1992
 Restated Restated Restated
 Sales $409,170 $564,803 $580,393
 Selling, general and
 administrative expense 8,255 12,153 10,305
 Interest expense, net 8,961 7,749 8,026
 Income (loss) before income
 taxes and cumulative effect
 of accounting changes
 (D and F) (4,700) 52,672 7,826
 Provision (credit) for income
 taxes (E and F) (1,800) 21,176 3,226
 Income (loss) before cumulative
 effect of accounting changes (2,900) 31,496 4,600
 Cumulative effect of changes
 in accounting for income
 taxes and turnarounds (F) 16,203 -- --
 Net income 13,303 31,496 4,600
 Preferred stock dividend
 requirements (G) 2,516 2,516 2,516
 Income attributable to
 common shareholders $ 10,787 $ 28,980 $ 2,084
 Earnings per common and
 common equivalent share:
 Primary $ .36 $ .96 $ .07
 Fully diluted (H) $ .36 $ .90 $ .07
 Shares used in the
 computation of earnings
 per common and common
 equivalent share:
 Primary (G) 30,151 30,107 29,481
 Fully diluted (G) 30,151 34,898 29,481
 (H) Fully diluted earnings per share computations for the first and third quarters of 1992 did not assume the conversion of the Series F stock because the effect would have been antidilutive (i.e., would have resulted in higher earnings per share).
 TOSCO CORPORATION AND SUBSIDIARIES
 Summarized Balance Sheet
 Dec. 31, 1992
 (Unaudited -- Thousands of dollars)
 Cash, cash equivalents and short-term
 investments $106,485
 Other current assets (A) 274,343
 Current liabilities (201,627)
 Working capital 179,201
 Property, plant and equipment (net) 687,299
 Other long term assets 109,753
 Long-term debt (B) (423,026)
 Long-term liabilities (66,798)
 Total shareholders' equity $486,429
 (A) Includes inventories valued on the last-in, first out (LIFO) basis. At Dec. 31, 1992, the excess of current cost over the LIFO stated inventory amount was approximately $30 million.
 (B) Includes cash borrowings of approximately $33 million under Seminole's revolving credit facility. There were no cash borrowings outstanding under Tosco's working capital facility at Dec. 31, 1992.
 TOSCO REFINING DATA SUMMARY
 (Thousands of barrels per day)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Crude oil refined 154.9 146.0 145.3 132.8
 Additional refinery feed &
 blending stock 9.3 6.6 7.3 7.0
 Total input 164.2 152.6 152.6 139.8
 Petroleum products produced:
 Gasoline 94.7 90.8 92.2 80.2
 Diesel 42.1 34.5 33.9 26.9
 Jet fuel .4 3.2 .4 3.5
 Residuals 11.9 4.4 12.5 11.0
 Petroleum coke 6.7 7.1 6.7 5.9
 Other 4.8 5.9 5.4 9.6
 Total petroleum products
 produced 160.6 145.9 151.1 137.1
 Purchased products 79.4 29.6 59.1 42.8
 Total petroleum products
 available for sale 240.0 175.5 210.2 179.9
 Total petroleum products
 sold 239.3 172.2 210.0 178.5
 Sales value of refined
 products produced for
 sale $23.77 $23.93 $23.65 $23.97
 Cost of crude oil
 processed 16.42 15.61 15.67 15.81
 Refining margin per barrel $7.35 $8.32 $7.98 $8.16
 SEMINOLE FERTILIZER DATA SUMMARY
 (In thousands of short tons)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Phosphate rock mined 680.4 719.1 3,197.3 2,823.3
 Products produced for sale:
 Diammonium phosphate
 fertilizer 403.5 490.5 1,616.3 1,877.5
 Triple superphosphate
 fertilizer 88.1 84.9 305.7 240.0
 Monammonium phosphate
 fertilizer 32.3 -- 32.3 40.4
 Acid products 20.8 5.2 55.5 27.6
 Total products produced for
 sale 544.7 580.6 2,009.8 2,185.5
 Total products purchased -- 23.4 172.8 68.4
 Total products available
 for sale 544.8 604.0 2,182.6 2,253.9
 Total products sold 532.5 694.8 2,156.5 2,347.5
 -0- 2/10/93
 /CONTACT: Jefferson F. Allen or Daniel P. Mulderry of Tosco, 203-977-1000/
 (TOS)


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

PS -- NY014 -- 5007 02/10/93 08:52 EST
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Date:Feb 10, 1993
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