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UNION TEXAS PETROLEUM REPORTS SECOND QUARTER RESULTS

 UNION TEXAS PETROLEUM REPORTS SECOND QUARTER RESULTS
 HOUSTON, July 27 /PRNewswire/ -- Union Texas Petroleum Holdings,


Inc. (NYSE: UTH) today reported $23 million, or 13 cents per share, in net income for the second quarter of 1992. This compares to $22 million for the same period a year ago, excluding a $165 million nonrecurring gain from the sale of the company's U.S. offshore oil and gas business in 1991. With the nonrecurring gain, the company's net income for 1991's second quarter was $187 million or $1.79 per share.
 Union Texas said that its financial and operating results for the second quarter of 1992 benefited from higher oil volumes in the United Kingdom North Sea, lower interest expense, and decreased general and administrative costs, offset by lower interest income and decreased United States ethylene prices.
 Union Texas' net income for the first six months of 1992 was $72 million, versus $80 million for the same period a year ago, excluding the following special items. During the first half of 1992, the company recorded an extraordinary charge of $20 million for the early redemption of $410 million of subordinated notes in February 1992. Including this extraordinary charge, Union Texas' net income for 1992's first half was $52 million, or 32 cents per share. In 1991's first half, the company had a gain from the sale of its U.S. offshore oil and gas business, which increased net income by $165 million to $245 million, or $2.31 per share.
 During the first half of 1992, Union Texas said its operations were affected by lower interest income and decreased Indonesian LNG and U.S. ethylene prices, partially offset by higher U.K. oil production, lower interest expense and decreased general and administrative costs.
 Revenues for 1992's second quarter totaled $153 million, down from $248 million from a year ago due primarily to the absence of the U.S. businesses sold in 1991 and lower interest income on U.K. tax refunds and on cash balances, partially offset by higher U.K. oil volumes and improved crude oil and LNG prices. For the first half of 1992, revenues were $349 million, versus $603 million for the same period in 1991. The decrease in 1992's first half revenues was attributed primarily to the absence of the U.S. businesses, lower interest income on U.K. tax refunds and on cash balances, and decreased LNG and ethylene prices.
 One of the nation's largest independent producers, Houston-based Union Texas Petroleum Holdings, Inc. explores for and produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and other strategic international areas. The company also has petrochemicals interests in the U.S.
 Comparative financial highlights follow (amounts in millions, except per share and shares outstanding data):
 UNION TEXAS PETROLEUM HOLDINGS, INC.
 Three Months Ended June 30,
 1992 1991
 Net income.............................. $ 23 $187(A)
 Net income excluding nonrecurring gain.. $ 23 $ 22
 Earnings per share: (B) (C)
 Before extraordinary items............ $0.13 $1.36
 Extraordinary items................... $ - $0.43
 Net income............................ $0.13 $1.79
 Revenues................................ $ 153 $ 248
 Average common shares outstanding.....85,764,735 85,035,548
 Six Months Ended June 30,
 1992 1991
 Net income.............................. $ 52(D) $245(A)
 Net income excluding nonrecurring gain
 and extraordinary items............... $ 72 $ 80
 Earnings per share: (B) (C)
 Before extraordinary items............ $ 0.55 $1.88
 Extraordinary items................... $(0.23)(D) $0.43
 Net income............................ $ 0.32 $2.31
 Revenues................................ $ 349 $ 603
 Average common shares outstanding..... 85,732,371 85,032,378
 (A) Includes net gain of $165 million on the sale of U.S. offshore business.
 (B) The earnings per share for 1991 were based on outstanding common stock equivalents.
 (C) The results of operations for 1991 reflect an extraordinary item representing the utilization of prior years' net operating tax losses to offset domestic taxable income primarily generated by the sale of the U.S. offshore business. This extraordinary gain is included in the net gain described in Footnote (A).
 (D) Reflects a $20 million extraordinary charge due to the debt premium and remaining unamortized issuance costs related to the early redemption of debt.
 UNION TEXAS PETROLEUM
 FINANCIAL SUMMARY
 (amount in millions, except per share and shares outstanding)
 SECOND QUARTER FIRST HALF
 1992 1991 1992 1991
 Revenues $ 153 $ 248 $ 349 $ 603
 Net income $ 23 $ 187(A) $ 52(B) $
 245(A)
 Major operations (C)
 Indonesia $ 16 $ 18 $ 41 $ 47
 U.K. North Sea $ 14 $ 7 $ 36 $ 40
 Pakistan $ 3 $ 4 $ 6 $ 9
 Petrochemicals $ 1 $ 3 $ 3 $ 9
 Net income applicable to
 common stockholders $ 13 $ 177 $ 31 $ 225
 Earnings per share of
 common stock (D)
 Before extraordinary
 item $0.13 $1.36 $ 0.55 $1.88
 Extraordinary item - $ .43 $(0.23)(B) $ .43
 Net income $0.13 $1.79 $ 0.32 $2.31
 Discretionary cash flow(E) $ 84 $ 223(A) $ 165(B) $354(A)
 Major operations (C)
 Indonesia $ 38 $ 36 $ 82 $ 87
 U.K. North Sea $ 51 $ 14 $ 107 $ 67
 Pakistan $ 6 $ 7 $ 11 $ 14
 Petrochemicals $ 3 $ 5 $ 6 $ 15
 Average common shares 85,764,735 85,035,548 85,732,371 85,032,378
 (A) Includes net gain of $165 million on the sale of U.S. offshore business.
 (B) Includes an extraordinary charge of $20 million in 1992 due to the debt premium and remaining unamortized issuance costs related to the early redemption of debt.
 (C) Excludes corporate items, other international ventures and results from businesses previously sold.
 (D) The earnings per share for 1991 were based on outstanding common stock equivalents. The results of operations for 1991 reflect an extraordinary item representing the utilization of prior years' net operating tax losses to offset domestic taxable income primarily generated by the sale of the U.S. offshore business.
 (E) Discretionary cash flow is net income (less equity partnerships income) excluding depreciation, deferred taxes, and exploration expenses, less preferred stock dividends, plus the company's estimated share of discretionary cash flow from its equity interest in its Unimar partnership's Indonesian operations.
 Prior year amounts have been restated for comparative purposes.
 UNION TEXAS PETROLEUM
 DISCRETIONARY CASH FLOW SUMMARY
 (amounts in millions)
 SECOND QUARTER FIRST HALF
 1992 1991 1992 1991
 Net income $ 23 $187(A) $ 52(B) $245(A)
 Less: Equity partnerships
 income $ 3 $ 2 $ 6 $ 8
 Add: DD&A $ 17 $ 28 $ 39 $ 79
 Deferred taxes $ 32 - $ 50 $ (1)
 Exploration expenses $ 16 $ 11 $ 30 $ 38
 Unimar equity DCF (C) $ 9 $ 9 $ 20 $ 21
 Less: Preferred dividends $(10) $(10) $(20) $(20)
 Discretionary cash flow $ 84 $223(A) $165(B) $354(A)
 (A) Includes net gain of $165 million on the sale of U.S. offshore business.
 (B) Includes an extraordinary charge of $20 million due to the debt premium and remaining unamortized issuance costs related to the early redemption of debt.
 (C) Unimar equity DCF reflects the company's estimated share of discretionary cash flow from its equity interest in its Unimar partnership's Indonesian operations.
 OPERATING SUMMARY (D)
 SECOND QUARTER FIRST HALF
 1992 1991 1992 1991
 Net crude oil sales (MBBLS/D)
 U.K. North Sea 13 10 13 11
 Pakistan 5 5 5 5
 Average crude oil prices (per BBL)
 U.K. North Sea $18.96 $18.58 $18.01 $18.61
 Pakistan $16.16 $14.15 $15.14 $14.61
 Net natural gas sales (MMCF/D)
 Indonesian LNG 176 188 196 200
 U.K. North Sea - - 13 17
 Pakistan 37 40 36 40
 Average natural gas prices (per MCF)
 U.K. North Sea (E) - - $ 3.76 $ 3.71
 Pakistan $ 1.15 $ 1.36 $ 1.14 $ 1.42
 Average Indonesian LNG prices
 (per MCF) $ 3.23 $ 3.08 $ 3.25 $ 3.63
 (D) Excludes the company's equity partnership.
 (E) Excludes capacity charge of $23 million and $18 million in the first half of 1992 and 1991, respectively, from the Sean gas fields in the U.K. North Sea.
 -0- 7/27/92
 /CONTACT: Carol Cox of Union Texas Petroleum Holdings, 713-968-3258/
 (UTH) CO: Union Texas Petroleum Holdings Inc. ST: Texas IN: OIL SU: ERN


PS -- NY014 -- 3342 07/27/92 08:38 EDT
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