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ULTRAMAR REPORTS SECOND QUARTER 1992 EARNINGS; BOARD DECLARES FIRST QUARTERLY DIVIDEND

 ULTRAMAR REPORTS SECOND QUARTER 1992 EARNINGS;
 BOARD DECLARES FIRST QUARTERLY DIVIDEND
 TARRYTOWN, N.Y., July 21 /PRNewswire/ -- Ultramar Corporation (NYSE: ULR) today reported second quarter 1992 proforma combined net income of $18.3 million or $.56 per common share and $39.5 million or $1.20 per share for the six months ended June 30, 1992.
 At a board meeting held today, the company declared a quarterly dividend of 27.5 cents per common share. This represents a yield on an annualized basis of 7.33 percent based on the initial offering price of $15 per share. The dividend will be paid Sept. 8, 1992, to holders of record on Aug. 4, 1992.
 Ultramar Corporation was formed in April 1992 to acquire certain Eastern Canadian and Californian refining and marketing operations. The company's stock is listed on the New York, Toronto, and Montreal stock exchanges. Trading of the company's common stock began on June 26, 1992, in an initial public offering of 33 million shares at $15.00 per share. The proforma financial information reflects the initial public offering and associated transactions and has not been prepared for the quarter and six months ended June 1991.
 Jean Gaulin, chairman and CEO, said, "Our financial performance in the second quarter was on target with our expectations. Our California operation performed well as refining margins were strong, particularly early in the quarter. Refining margins in California have benefitted this year from the closure or partial closure of two competitor refineries, which reduced supply."
 Throughput at the company's Los Angeles refinery was reduced to 80,200 BPD in the second quarter 1992 from 83,900 BPD in the second quarter 1991 as there was a scheduled maintenance turnaround which limited refinery throughput.
 Throughputs at the company's two Eastern Canadian refineries were excellent during the second quarter reflecting a recovery in petroleum demand. Industry demand for light products in Eastern Canada was up 2 percent through May compared to the first five months of 1991. Ultramar's light product demand was up 8 percent in the second quarter 1992 compared to the same quarter in 1991. The company's market share increased primarily from successful promotional programs.
 Refining margins in Eastern Canada were significantly higher during the first six months of 1991 compared to the same period in 1992. This was primarily due to the sharp drop in crude oil prices early last year which were not matched by similar declines in retail prices.
 Commenting on current business conditions, Gaulin said, "Weak gasoline demand on both the East and West Coasts of North America has squeezed refining margins in those markets over the last few weeks. This may speed up the rationalization in the refining sector to the benefit of low-cost operators, such as Ultramar. Somewhat mitigating the lower refining margins are the good retail margins which improved over the course of the second quarter and which remain strong."
 Gaulin went on to say, "In Canada, we decided to accelerate a planned streamlining of our retail and distribution network. This is expected to have a positive impact on yearly pre-tax cash flow of $15 million starting July 1."
 On July 16, the underwriters of the company's initial public offering exercised their over-allotment option to purchase additional shares in the company at the initial offering price. This will provide the company with an additional $70.3 million, which will be available for general corporate purposes. The over-allotment shares have not been taken into account in calculating earnings per share as presented above.
 Ultramar Corporation is a leading North American independent refiner and marketer of petroleum products with refineries in Los Angeles (90,000 barrels per day), St. Romuald, Quebec (120,000 barrels per day) and Halifax, Nova Scotia (22,000 barrels per day). Ultramar's retail network includes approximately 380 retail outlets in California and approximately 1,470 in Eastern Canada. In 1991, Ultramar sold approximately 253,000 barrels per day of petroleum products, the majority of which were transportation fuels and had revenues of $2.8 billion.
 ULTRAMAR CORPORATION AND SUBSIDIARIES
 (U.S. dollars in thousands, except earnings per share amounts)
 (Unaudited)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 PRO FORMA FINANCIAL DATA (A)
 Operating Income $41,417 -- $90,664 --
 Net income $18,341 -- $39,540 --
 Earns. per com. share (B) $0.56 -- $1.20 --
 PREDECESSOR FINANCIAL DATA
 Revenue $646,439 $667,092 $1,280,745 $1,392,765
 Operating income 30,586 47,248 68,537 110,278
 Net income $ 12,756 $ 17,982 $ 27,229 $ 41,944
 OPERATING DATA
 Wilmington Refinery:
 Throughput (bbls. per day) 80,200 83,900 74,900 83,300
 Margin (US $ per barrel) $7.74 $5.03 $6.93 $4.47
 Quebec & Halifax Refineries
 Combined:
 Throughput (barrels per
 day) 126,400 124,400 127,300 119,100
 Margin (US $ per barrel) $3.05 $6.99 $3.09 $6.35
 Retail Marketing:
 California (company
 operated only)
 Sales (barrels per day) 17,900 20,300 17,700 19,100
 Margin (cents per
 gallon) 6.9 cts 6.0 cts 7.9 cts 7.1 cts
 Eastern Canada
 Sales (barrels per day) 51,500 46,800 55,200 48,300
 Margin (cents per
 gallon) 25.2 cts 24.2 cts 26.8 cts 28.3 cts
 (A) -- Proforma results were not prepared for the quarter and six months ended June 30, 1991.
 (B) -- Earnings per share based on 33 million shares outstanding as of June 30, 1992.
 -0- 7/21/92
 /CONTACT: Steven Blank of Ultramar, 914-333-2019; or Lissa Perlman of Kekst and Company, 212-593-2655, for Ultramar/
 (ULR) CO: Ultramar Corporation ST: New York, California IN: OIL SU: ERN DIV


GK-KW -- NY075 -- 1422 07/21/92 14:09 EDT
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Date:Jul 21, 1992
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