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UNOCAL COMPLETES $500 MILLION PREFERRED OFFERING; ANNOUNCES FURTHER DETAILS ON QUARTERLY RESULTS

 UNOCAL COMPLETES $500 MILLION PREFERRED OFFERING;
 ANNOUNCES FURTHER DETAILS ON QUARTERLY RESULTS
 LOS ANGELES, July 28 /PRNewswire/ -- Unocal Corporation (NYSE: UCL) today announced the completion of a private placement of $513 million in convertible preferred stock. The company also released additional operating details on its earnings for the second quarter 1992 and the first six months of the year.
 The 10.25 million share convertible preferred issue, priced at $50 per share, pays a $3.50 cumulative annual dividend per share. The issue is non-callable by the company for four years.
 Each share of preferred stock is convertible, at the option of the holder, into Unocal common stock at a conversion ratio of 1.626 shares of common stock per share of preferred stock. This is a conversion price of $30.75 per common share.
 Unocal emphasized that the offering will complement -- not substitute for -- the restructuring program now underway.
 Las ?April, the company announced a restructuring program that included plans to reduce total debt by $1.5 billion over the next five years. The proceeds from the preferred offering will be used initially to reduce debt in 1992, thereby accelerating the debt reduction program.
 Starting in 1993, Unocal plans a three-year, $500 million program to expand development of its proven undeveloped crude oil and natural gas reserves in the United States. Unocal has an inventory of such projects which can be profitably developed, even at prices below current levels. This program will be funded with cash flow that otherwise would have been used for debt reduction.
 Unocal also today provided additional operating data on the company's second quarter and six months 1992 results. Unocal had released earnings information on July 17.
 Second quarter 1992 earnings were $66 million, or 28 cents per share, compared with earnings of $5 million, or 2 cents per share in the same period a year ago. For the first six months of 1992, net earnings were $82 million, or 35 cents per share, compared with $80 million, or 34 cents per share, in 1991.
 Excluding special items (detailed in the attached table), earnings from operations for the second quarter were $52 million, or 22 cents per share, compared with $13 million, or 6 cents per share, in 1991. The year-to-date earnings, excluding special items, were $76 million, or 32 cents per share, up from $73 million, or 31 cents per share, a year ago.
 Second quarter revenues were $2.67 billion, down from $2.73 billion in 1991. Six-month 1992 revenues were $5.09 billion, down from $5.44 billion in the same period in 1991.
 Unocal's cash flow from operations and asset sales, before working capital changes, was $540 million for the quarter, up from $273 million a year ago. For the six months, cash flow was $858 million, up from $600 million in 1991. The increased cash flow resulted from increased proceeds from asset sales, which accounted for $220 million in the quarter and $325 million for the year-to- date. The second quarter cash flow benefited from improved operating earnings.
 Capital expenditures for the quarter were $242 million, down from $328 million in the same period a year ago. For the year-to- date, capital expenditures were $491 million, down from $588 million in 1991. The prior year's capital expenditures reflected higher spending on oil and gas exploration and production activities.
 Exploration expense for the quarter totaled $46 million, down from $51 million a year ago. For the year to date, exploration expense was $90 million, compared with $98 million in 1991.
 Petroleum Exploration and Production
 Second quarter earnings from petroleum exploration and production totaled $97 million, up from $79 million a year ago. Year-to-date earnings for petroleum exploration and production were $197 million, down from $237 million in 1991. The earnings reflected lower dry hole expense and foreign exploration income tax benefits. These positive factors were offset partially by lower crude oil production and lower domestic natural gas prices.
 Net worldwide crude oil and condensate production in the second quarter averaged 254,800 barrels per day, compared with 261,100 barrels per day a year ago. Worldwide average sales price for crude and condensate was $16.36 per barrel in the second quarter, up from $15.78 per barrel a year ago.
 Worldwide natural gas production averaged 1,590 million cubic feet per day in the second quarter, up from 1,538 million cubic feet per day last year. Average natural gas sales price was $1.78 per thousand cubic feet (mcf), up from $1.71 per mcf last year. In the U.S., natural gas sales prices averaged $1.48 per mcf in the quarter, down from $1.55 last year.
 Refining, Marketing and Transportation
 Unocal's refining, marketing and transportation segment recorded earnings of $39 million in the second quarter, up from $7 million in the same period a year ago. Six-months earnings were $46 million, up from $3 million in 1991.
 The improved earnings reflected higher West Coast margins, including the benefit of the Shell refinery acquisition, as well as improved earnings from the UNO-VEN joint venture.
 Sales of petroleum products averaged 437,500 barrels per day in the quarter, compared with 448,900 barrels per day last year.
 Chemicals
 Second quarter earnings from the chemicals segment were $28 million, compared with $24 million last year. Year-to-date earnings by the segment were $28 million, down from $38 million in 1991. The second quarter results include a gain from the sale of the company's emulsion polymers business. This was offset by a loss on the sale of retail chemical distribution assets in the first quarter.
 Geothermal
 Geothermal operations reported net earnings of $3 million in the second quarter, down from $10 million a year ago. For the six months, earnings from geothermal operations were $10 million, compared with $16 million in 1991. The lower earnings from geothermal operations reflected lower steam prices.
 Daily geothermal energy production in the second quarter averaged 22.7 million kilowatt-hours, down from 23.7 million kilowatt-hours in the second quarter of 1991.
 Other Operations
 Other business operations recorded a loss of $1 million for the quarter, compared with a loss of $5 million in 1991. In the first six months, other operations recorded a $2 million loss, compared with a $15 million loss for the same period last year. The improvement reflected the suspension of oil shale operations in 1991.
 Corporate and Unallocated
 Corporate and unallocated expense for the second quarter was $100 million, down from $110 million in 1991. The increase reflected lower litigation and environment-related costs and lower net interest expense. In the first six months of 1992, corporate and unallocated expense was $197 million, down slightly from $199 million a year ago.
 UNOCAL CORPORATION
 1992 EARNINGS PRESS RELEASE SUPPLEMENT
 For the For the
 Three Months Ended Six Month Ended
 Jun 30, Jun 30, Jun 30, Jun 30,
 1992 1991 1992 1991
 Dollars in Millions
 except per share
 amounts
 Reported Earnings $66 $5 $82 $80
 Less: Special items
 Major asset sales 10 - (1) -
 Unusual
 environmental/
 litigation costs (7) (8) (14) (12)
 Amort. of costs
 related to
 UXC formation - (2) - (5)
 Natural gas
 contract
 settlement - 2 - 24
 Tax benefit on
 foreign
 exploration
 expense 11 - 21 -
 Total Special
 items $14 ($8) $6 $7
 Adjusted Earnings $52 $13 $76 $73
 Adjusted Earnings
 per share $0.22 $0.06 $0.32 $0.31
 UNOCAL CORPORATION
 FINANCIAL DATA
 (unaudited)
 For the Three Months For the Six Months
 Ended June 30 Ended June 30
 1992 1991 1992 1991
 Dollars in Millions
 Except Per Share Amounts
 Total revenues (a) $2,673 $2,725 $5,094 $5,442
 Costs and other
 deductions(a) 2,553 2,694 4,948 5,262
 Earnings before
 taxes on income 120 31 146 180
 Federal and other
 taxes on income 54 26 64 100
 Net earnings $66 $5 $82 $80
 Earnings per share(b) $0.28 $0.02 $0.35 $0.34
 (a) Includes consumer
 excise taxes of $252 $272 $501 $531
 (b) Based on weighted
 average shares
 outstanding
 (in millions) 238 235 236 235
 NET EARNINGS BY BUSINESS SEGMENT
 (unaudited)
 For the Three Months For the Six Months
 Ended June 30 Ended June 30
 1992 1991 1992 1991
 Millions of dollars
 Petroleum
 Exploration and
 Production
 United States $40 $33 $73 $127
 Foreign 57 46 124 110
 Refining,
 Marketing and
 Transportation (a) 39 7 46 3
 Chemicals 28 24 28 38
 Geothermal 3 10 10 16
 Other (c) (1) (5) (2) (15)
 Corporate and
 Unallocated (b) (100) (110) (197) (199)
 Total $66 $5 $82 $80
 a) Includes equity
 in earnings of
 affiliates
 (after-tax) of $17 $9 $33 $18
 b) Includes net
 interest expense
 (after-tax) of ($62) ($66) ($129) ($116)
 c) Includes minerals,
 oil shale and real
 estate operations.
 d) Restated to conform
 to the 1992 presentation.
 UNOCAL CORPORATION
 OPERATING HIGHLIGHTS
 (unaudited)
 For the Three Months For the Six Months
 Ended June 30 Ended June 30
 1992 1991 1992 1991
 Net daily
 production (a)
 Crude oil and
 condensate
 (thousand barrels):
 United States 154.9 160.3 154.9 159.0
 Foreign 99.9 100.8 100.0 103.9
 Total 254.8 261.1 254.9 262.9
 Natural gas
 (million cubic
 feet):
 United States 954 899 955 911
 Foreign 636 639 619 628
 Total 1,590 1,538 1,574 1,539
 Natural gas liquids
 (thousand barrels) 19.8 16.3 19.4 17.1
 Geothermal (million
 kilowatt-hours) 22.7 23.7 23.0 23.6
 Input to crude oil
 processing units
 (thousand barrels
 daily)(b) 295.6 264.9 279.2 256.7
 Sales of petroleum
 products (thousand
 barrels daily)(b) 437.5 448.9 425.8 438.1
 Capital expenditures
 (millions of dollars) 242 328 491 588
 Exploration expense
 (millions of dollars) 46 51 90 98
 Cash flows from
 operating activities
 and asset sales
 (millions of dollars)
 Excluding working
 capital changes 540 273 858 600
 Including working
 capital changes 329 (43) 665 248
 Average sales prices
 Crude oil and
 condensate (per barrel):
 United States $15.90 $15.24 $14.48 $15.83
 Foreign $17.30 $16.85 $16.61 $17.68
 Worldwide $16.36 $15.78 $15.16 $16.44
 Natural gas (per mcf):
 United States $1.48 $1.55 $1.60 $1.74
 Foreign $2.24 $1.95 $2.18 $2.10
 Worldwide $1.78 $1.71 $1.83 $1.85
 (a) Includes net profits type agreements on a gross basis.
 (b) Includes the company's 50 percent equity portion of The
 UNO-VEN Company.
 -0- 7/28/92
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL) CO: Unocal Corp. ST: California IN: OIL SU: OFR ERN


CH -- LA020 -- 4083 07/28/92 12:21 EDT
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