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UNOCAL ANNOUNCES FIRST QUARTER 1993 EARNINGS; TAKES $130 MILLION CHARGE FOR ACCOUNTING CHANGES

 LOS ANGELES, April 26 /PRNewswire/ -- Unocal Corp. today said its earnings before one-time charges for accounting changes were $141 million in the first quarter 1993, up from $16 million in the same period a year ago.
 Richard J. Stegemeier, Unocal's chairman and chief executive officer, said that the 1993 results reflected higher domestic crude oil and natural gas prices, lower exploration and dry hole expenses, improved West Coast refining and marketing earnings, lower interest expense and other operating and administrative cost savings.
 Unocal recorded a one-time charge of $130 million in the first quarter 1993 for the cumulative effect of changes in accounting principles for post-retirement medical benefits (SFAS 106) and post- employment benefits (SFAS 112).
 The first quarter 1992 results were restated to include a $24 million benefit from the change in accounting for income taxes (SFAS 109), which was adopted in 1992.
 After these accounting changes, Unocal's net earnings for the first quarter 1993 were $11 million, or 1 cent per common share. This compares with $40 million, or 17 cents per common share, in the first quarter 1992.
 Operating earnings for the first quarter 1993, excluding accounting changes, asset sales and other special items were $98 million, or 37 cents per common share, vs. $23 million, or 10 cents per share last year.
 Cash flows from operations in the first quarter 1993, before working capital changes, were $363 million in 1993, up from $213 million last year. This improvement was driven partly by higher commodity prices, but also began to reflect the expense reduction and operating improvements implemented over the past year.
 "We expect that these work force reductions and operational changes will contribute about $200 million in annual operating cash flow by 1994," Stegemeier said. A significant portion of that improvement will be realized in 1993.
 The company said its goal is to generate the maximum possible cash flows over the long term from its core business units. To accomplish this goal, Unocal's strategy is to improve the operating performance of each business unit; accelerate development drilling, particularly in the United States; maximize efficiency of downstream operations; and focus exploration and development on high-impact opportunities where the company feels it has a clear-cut competitive edge.
 Proceeds from asset sales were $274 million after-tax in the first quarter 1993, vs. $95 million last year. Unocal is now two- thirds of the way toward meeting the $700 million asset sales target set last year. The 1993 asset sales included $190 million after-tax from the sale of the company's geothermal operations in California's Imperial Valley and the Glass Mountain and Medicine Lake geothermal properties in Northern California.
 First quarter revenues were $2.32 billion, down from $2.42 billion in 1992. The lower revenues reflect the sale of several businesses during 1992.
 Capital expenditures for the quarter totaled $192 million, down from $249 million for the same quarter a year ago.
 "Our capital spending plan was predicated on successfully completing major asset sales," Stegemeier said. "Now that we have completed several asset sales, we will proceed with the spending plan announced earlier this year." The company expects capital spending to reach $1.4 billion in 1993.
 Exploration expense for the quarter totaled $27 million, compared with $44 million a year ago. Dry hole expense was $8 million, down from $20 million in 1992. The decreased spending reflects the company focus on fewer exploration prospects.
 Petroleum Exploration and Production
 First quarter 1993 earnings from petroleum exploration and production totaled $142 million, up from $100 million in 1992. Excluding special items, the segment earned $120 million, compared with $90 million the year before.
 The increase reflects higher domestic crude oil and natural gas prices, higher foreign natural gas production, lower production costs and lower exploration and dry hole expenses. Partially offsetting these positive factors were lower domestic crude oil and natural gas production and lower foreign natural gas prices.
 Net worldwide crude oil and condensate production for the first quarter 1993 averaged 252,900 barrels per day, down slightly from 254,800 barrels per day in 1992. The company's worldwide average sales price for crude and condensate was $14.90 per barrel, compared with $13.95 per barrel last year.
 First-quarter daily worldwide natural gas production averaged 1,637 million cubic feet, up 5 percent from 1,557 million cubic feet a year ago. Unocal's worldwide average natural gas sales price was $1.89 per thousand cubic feet (mcf), compared with $1.88 per mcf the previous year.
 Refining, Marketing and Transportation
 Unocal's refining, marketing and transportation business segment recorded earnings of $44 million, up from $7 million a year ago.
 The higher earnings reflected significantly improved West Coast refining and marketing margins, but were dampened somewhat by maintenance at the company's refineries in San Francisco and Los Angeles.
 The company's Southeastern U.S. marketing operations, which posted a loss of $7 million in the first quarter 1992, is being phased out. This phase-out was a key factor in the decline of the company's petroleum products sales from 414,200 barrels per day in the first quarter 1992 to 379,900 barrels per day this year.
 Chemicals
 Chemicals operations recorded earnings of $12 million for the first quarter 1993. In the same period a year ago, the company's chemicals segment broke even. Excluding special items, the chemicals segment earned $13 million in the first quarter 1993, compared with $11 million a year ago.
 Geothermal
 Geothermal operations posted earnings of $32 million in the first quarter 1993, up from $7 million a year ago. Excluding the gains from asset sales, earnings from geothermal operations were $6 million in 1993, down slightly from $7 million in 1992.
 Daily geothermal energy production averaged 22.1 million kilowatt-hours in the first quarter 1993, compared with 23.3 million kilowatt-hours in the same period a year ago.
 Corporate and Other
 Corporate expenses and the results of other businesses were $89 million in the first quarter 1993, down from $98 million year ago. Excluding unusual environmental and litigation costs, corporate expenses were $85 million, down from $92 million in the same period of 1992.
 The results reflect lower interest expense that was partially offset by higher ongoing environment-related costs.
 UNOCAL CORP.
 1993 Earnings News Release Supplement
 Special Adjustments-Consolidated
 (Unaudited)
 Dollars in millions except per share amounts
 For the Three Months Ended
 March 31, 1993 March 31, 1992
 Reported earnings $11 $40(a)
 Less: Special items
 Cumulative Effect of
 Accounting Changes
 -- For post-retirement
 benefits (SFAS 106) (121) ---
 -- For post-employment
 benefits (SFAS 112) (9) ---
 -- For income taxes (SFAS 109) --- 24
 Major asset sales 47 (11)
 Unusual environmental/
 litigation costs (4) (6)
 Tax benefit on foreign
 exploration expense --- 10
 Total special items (87) 17
 Adjusted earnings 98 23
 Less: Dividends on preferred stock 9 ---
 Adjusted earnings applicable
 to common shares $89 $23
 Adjusted earnings per
 common share $0.37 $0.10
 (a) Restated for the cumulative effect of an accounting change for income taxes.
 UNOCAL CORP.
 1993 Earnings News Release Supplement
 Special Adjustments by Business Segments
 (Unaudited)
 Dollars in millions except per share amounts
 For the Three Months Ended
 March 31, 1993 March 31, 1992
 Petroleum Exploration and
 Production
 Reported earnings $142 $100
 Less:
 Major asset sales 22 ---
 Tax benefit on foreign
 exploration expense --- 10
 Adjusted E&P Earnings $120 $90
 Refining, Marketing and
 Transportation
 Reported earnings $44 $7
 Geothermal
 Reported earnings $32 $7
 Less: Major asset sales 26 ---
 Adjusted geothermal earnings $6 $7
 Chemicals
 Reported earnings $12 $---
 Less: Major asset sales (1) (11)
 Adjusted chemicals earnings $13 $11
 Corporate and Other
 Reported earnings ($89) ($98)
 Less: Unusual environmental/
 litigation costs (4) (6)
 Adjusted corporate and other ($85) ($92)
 Total adjusted earnings $98 $23
 Less: Dividends on preferred stock 9 ---
 Adjusted earnings applicable
 to common shares $89 $23
 Adjusted earnings per common share $0.37 $0.10
 UNOCAL CORP.
 1993 Earnings News Release Supplement
 News Release Financial Data
 (Unaudited)
 Dollars in millions except per share amounts
 For the Three Months
 Ended March 31,
 1993 1992(c)
 Total revenues(a) $2,318 $2,421
 Costs and other deductions(a) 2,068 2,395
 Earnings before income taxes 250 26
 Income taxes 109 10
 Earnings before cumulative effect
 of accounting changes 141 16
 Cumulative effect of accounting changes (130) 24
 Net earnings $11 $40
 Dividends on preferred stock 9 ---
 Net earnings applicable to common shares $2 $40
 Earnings per common share:(b)
 Before cumulative effect of
 accounting changes $0.55 $0.07
 Cumulative effect of accounting
 changes (0.54) 0.10
 Net earnings $0.01 $0.17
 (a) Includes consumer excise taxes of $237 $249
 (b) Based on weighted average common
 shares outstanding (millions) 241 235
 (c) Restated to include the cumulative effect of a change in


accounting principle for income taxes resulting from the implementation of FASB 109 in the third quarter 1992.
 Net Earnings by Business Segment
 (Unaudited)
 Millions of dollars
 For the Three Months
 Ended March 31,
 1993 1992
 Petroleum
 Exploration and Production
 United States $87 $33
 Foreign 55 67
 Refining, Marketing and
 Transportation(a) 44 7
 Chemicals 12 ---
 Geothermal 32 7
 Corporate and other(b)(c) (89) (98)
 Sub-total 141 16
 Cumulative effect of accounting changes (130) 24
 Total $11 $40
 (a) Includes equity in earnings of
 affiliates (after-tax) of $13 $16
 (b) Includes net interest expense
 (after-tax) of ($52) ($67)
 (c) Includes minerals and real estate operations.
 UNOCAL CORP.
 1993 Earnings News Release Supplement
 Operating Highlights
 (Unaudited)
 For the Three Months
 Ended March 31,
 1993 1992
 Net daily production(a)
 Crude oil and condensate (thousand barrels)
 United States 152.5 154.8
 Foreign 100.4 100.0
 Total 252.9 254.8
 Natural gas (million cubic feet)
 United States 929 955
 Foreign 708 602
 Total 1,637 1,557
 Natural gas liquids (thousand barrels) 19.9 19.0
 Geothermal (million kilowatt-hours) 22.1 23.3
 Input to crude oil processing units
 (thousand barrels daily)(b) 279.4 262.7
 Sales of petroleum products (thousand
 barrels daily)(b) 379.9 414.2
 Capital expenditures (millions of dollars) 192 249
 Exploration expense (millions of dollars) 27 44
 Cash flows from operating activities
 (millions of dollars)
 Excluding working capital changes 363 213
 Including working capital changes 305 231
 Cash flows from asset sales (millions of
 dollars) 320 105
 Average sales prices
 Crude oil and condensate (per barrel)
 United States $14.38 $13.06
 Foreign $16.01 $15.89
 Worldwide $14.90 $13.95
 Natural gas (per mcf)
 United States $1.82 $1.72
 Foreign $1.96 $2.12
 Worldwide $1.89 $1.88
 (a) Includes net profits type agreements on a gross basis.
 (b) Includes the company's 50 percent equity portion of The UNO-VEN Co.
 -0- 4/26/93
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL)


CO: Unocal Corp. ST: California IN: OIL SU: ERN

KJ-JL -- LA010 -- 0727 04/26/93 13:05 EDT
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