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UNION TEXAS PETROLEUM REPORTS THIRD QUARTER RESULTS

 UNION TEXAS PETROLEUM REPORTS THIRD QUARTER RESULTS
 HOUSTON, Oct. 27 /PRNewswire/ -- Union Texas Petroleum Holdings,


Inc. today reported $21 million, or 11 cents per share, in net income for the third quarter of 1992. This compares to $19 million for the same period a year ago, excluding a $41 million nonrecurring net gain from the sales of the company's U.S. onshore oil and gas and gas processing businesses in 1991. With the nonrecurring gain, the company's net income for 1991's third quarter was $60 million, or 55 cents per share.
 Union Texas said that its financial and operating results for the third quarter of 1992 benefitted from higher Indonesian liquefied natural gas (LNG) prices, lower interest expense and decreased general and administrative costs, offset by lower LNG volumes due to differences in timing of shipments under its various sales contracts and lower interest income. Union Texas noted that it expects LNG sales volumes for the full year 1992 will be above 1991.
 Union Texas' net income for the first nine months of 1992 was $93 million, versus $99 million for the same period a year ago, excluding nonrecurring items. During the first nine months of 1992, the company recorded an extraordinary charge of $20 million for the early redemption of $410 million of subordinated notes. Including this extraordinary charge, Union Texas' net income for the first nine months of 1992 was $73 million or 43 cents per share. In the first nine months of 1991, the company had a total one-time net gain from the sales of its U.S. offshore and onshore oil and gas businesses and gas processing business, which increased net income by $206 million to $305 million, or $2.87 per share. Net income for the first nine months of 1992 is summarized as follows:
 UNION TEXAS PETROLEUM HOLDINGS, INC.
 (amounts in millions)
 1992 1991
 Net income before
 nonrecurring items $ 93 $ 99
 Extraordinary loss from
 early redemption of debt (20) -
 Gain on sale of U.S. assets - 206
 Net income $ 73 $305
 During the first nine months of 1992, Union Texas said its operations were affected by lower LNG volumes, decreased ethylene prices and lower interest income on U.K. tax refunds, partially offset by lower interest expense and lower general and administrative expenses.
 Revenues for the third quarter and first nine months of 1992 totaled $178 million and $527 million, respectively, as compared to $275 million and $879 million, respectively, for the corresponding periods in 1991. The decrease in revenues for both periods in 1992 was attributed largely to the absence of the U.S. businesses sold in 1991.
 During the third quarter of 1992, Union Texas redeemed all of the company's outstanding preferred Series B and C stock and warrants for an aggregate amount of $510 million, which included accrued dividends to the date of redemption with respect to the preferred stock. The company funded the redemptions with $410 million of borrowings under its new credit facility and with available cash of $100 million.
 One of the nation's largest independent producers, Houston-based Union Texas Petroleum Holdings, Inc. (NYSE: UTH) 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.
 UNION TEXAS PETROLEUM HOLDINGS, INC.
 Comparative financial highlights


(amounts in millions, except per share and shares outstanding data):
 Three Months Ended Sept. 30, 1992 1991
 Net income $ 21 $ 60(A)
 Net inc. excluding nonrecurring gain $ 21 $ 19
 Earnings per share: (B) (C)
 Before extraordinary items $ 0.11 $ 0.46
 Extraordinary items $ - $ 0.09
 Net income $ 0.11 $ 0.55
 Revenues $ 178 $ 275
 Average common shares outstanding 85,853,004 85,206,303
 Nine Months Ended Sept. 30, 1992 1991
 Net income $ 73(D) $ 305(A)
 Net income excluding nonrecurring
 gain and extraordinary items $ 93 $ 99
 Earnings per share: (B) (C)
 Before extraordinary items $ 0.66 $ 2.35
 Extraordinary items $ (0.23)(D) $ 0.52
 Net income $ 0.43 $ 2.87
 Revenues $ 527 $ 879
 Average common shares outstanding 85,772,875 85,090,990
 (A) Includes net gain on the sale of the U.S. onshore and gas processing businesses of $41 million in the third quarter and net gain on the sale of the U.S. offshore business of $165 million in the second quarter, respectively.
 (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 and onshore businesses. 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.
 Additional financial and operating information follows.
 UNION TEXAS PETROLEUM
 FINANCIAL SUMMARY
 (amounts in millions, except per share and shares outstanding)
 THIRD QUARTER FIRST NINE MONTHS
 1992 1991 1992 1991
 Revenues $ 178 $ 275 $ 527 $ 879
 Net income $ 21 $ 60(A) $ 73(B) $ 305(A)
 Major operations (C)
 Indonesia $ 26 $ 22 $ 67 $ 68
 U.K. North Sea $ 8 $ 4 $ 45 $ 44
 Pakistan $ 4 $ 6 $ 10 $ 14
 Petrochemicals $ - $ 1 $ 3 $ 10
 Net inc. applicable to common
 stockholders $ 11 $ 50 $ 43 $ 275
 Earns. per share of
 common stock (D)
 Before extraord.
 item $ 0.11 $ 0.46 $ 0.66 $2.35
 Extraord. item $ - $ 0.09 $(0.23)(B) $0.52
 Net income $ 0.11 $ 0.55 $ 0.43 $2.87
 Discretionary cash
 flow(E) $ 70 $ 118(A) $ 235(B) $ 472(A)
 Major operations (C)
 Indonesia $ 51 $ 47 $ 133 $ 135
 U.K. North Sea $ 28 $ 24 $ 136 $ 91
 Pakistan $ 5 $ 8 $ 16 $ 22
 Petrochemicals $ 2 $ 3 $ 8 $ 18
 Avg. common shares 85,853,004 85,206,303 85,772,875 85,090,990
 (A) Includes net gain on the sale of the U.S. onshore and gas processing businesses of $41 million in the third quarter and net gain on the sale of the U.S. offshore business of $165 million in the second quarter, respectively. Also includes $12 million and $58 million of discretionary cash flow for the third quarter and the first nine months of 1991, respectively, from operations of domestic businesses in which the company no longer participates as a result of the sales in 1991.
 (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 and onshore businesses.
 (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
 BALANCE SHEET DATA
 (amounts in millions)
 Sept. 30, 1992 Dec. 31, 1991
 Cash and cash equivalents $ 108(A)(B) $ 746
 Total assets $1,744 $2,247
 Total debt $ 523(A)(B) $ 526
 Preferred stock $ 75(B) $ 275
 Stockholders' equity $ 391(B) $ 674
 (A) In the first quarter of 1992, the Company redeemed all of its $100 million Senior Subordinated Reset Notes and all of its outstanding $310 million 13 percent Subordinated Notes. The redemption was funded with available cash.
 (B) In the third quarter of 1992, the Company redeemed its outstanding preferred Series B and C stock and warrants for an aggregate $510 million, which was funded with $410 million of borrowings under its credit facility and with available cash of $100 million.
 UNION TEXAS PETROLEUM
 DISCRETIONARY CASH FLOW SUMMARY
 (amounts in millions)
 THIRD QUARTER FIRST NINE MONTHS
 1992 1991 1992 1991
 Net income $ 21 $ 60(A) $ 73(B) $305(A)
 Less: Equity partnerships
 income $ 4 $ 1 $ 10 $ 9
 Add: DD&A $ 20 $ 27 $ 59 $106
 Deferred taxes $ 12 $ 14 $ 62 $ 13
 Exploration expenses $ 18 $ 16 $ 48 $ 54
 Unimar equity DCF (C) $ 13 $ 12 $ 33 $ 33
 Less: Preferred dividends $(10) $(10) $(30) $(30)
 Discretionary cash flow $ 70 $118(A) $235(B) $472(A)
 (A) Includes net gain on the sale of the U.S. onshore and gas processing businesses of $41 million in the third quarter and net gain on the sale of the U.S. offshore business of $165 million in the second quarter, respectively. Also includes $12 million and $58 million of discretionary cash flow for the third quarter and the first nine months of 1991, respectively, from operations of domestic businesses in which the company no longer participates as a result of the sales in 1991.
 (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)
 THIRD QUARTER FIRST NINE MONTHS
 1992 1991 1992 1991
 Net crude oil sales
 (MBBLS/D)
 U.K. North Sea 16 18 14 13
 Pakistan 5 4 5 5
 Average crude oil prices
 (per BBL)
 U.K. North Sea $19.27 $19.18 $18.49 $18.86
 Pakistan $16.84 $16.03 $15.73 $15.07
 Net natural gas sales
 (MMCF/D)
 Indonesian LNG 205 233 199 211
 U.K. North Sea - - 9 11
 Pakistan 35 39 36 39
 Average natural gas prices
 (per MCF)
 U.K. North Sea (E) - - $ 3.76 $ 3.71
 Pakistan $ 1.16 $ 1.36 $ 1.15 $ 1.40
 Average Indonesian LNG prices
 (per MCF) $ 3.64 $ 3.33 $ 3.38 $ 3.52
 (D) Excludes the company's equity partnership.
 (E) Excludes capacity charge of $23 million and $18 million in the first nine months of 1992 and 1991, respectively, from the Sean gas fields in the U.K. North Sea.
 -0- 10/27/92
 /CONTACT: Carol L. Cox of Union Texas Petroleum Holdings, Inc., 713-968-3258/
 (UTH) CO: Union Texas Petroleum Holdings, Inc. ST: Texas IN: OIL SU: ERN


SH -- NY016 -- 5201 10/27/92 09:06 EST
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