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UNOCAL POSTS $11 MILLION NET EARNINGS FOR THIRD QUARTER

 UNOCAL POSTS $11 MILLION NET EARNINGS FOR THIRD QUARTER
 LOS ANGELES, Oct. 26 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) today reported net earnings for the third quarter 1992 of $11 million, compared with $9 million in the third quarter of 1991. After dividends on preferred stock, earnings per common share were 1 cent in 1992, vs. 4 cents in 1991.
 Excluding special items (detailed in attached table), Unocal's third quarter earnings were $65 million, or 24 cents per common share, up from $23 million, or 10 cents per common share in 1991.
 The third quarter 1992 special items included charges of $32 million for the company-wide restructuring program and $32 million for unusual environmental and litigation costs. The company also had a $10 million gain from tax benefits related to foreign exploration expense. In addition to these items, the nine- months results included a $24 million reduction in tax expense from the adoption of FASB Statement No. 109.
 For the first nine months of 1992, Unocal's reported net earnings were $117 million, or 46 cents per common share (after dividends on preferred stock). Excluding special items, Unocal's adjusted earnings for the nine months were $143 million, or 57 cents per common share.
 This compares with reported nine-months earnings of $89 million, or 38 cents per share, in 1991. Excluding special items, the nine- months earnings last year were $96 million, or 41 cents per common share.
 Richard J. Stegemeier, Unocal chairman and chief executive officer, said the quarter and nine-months results reflected improved refining and marketing operating earnings, lower expenses because of the suspension of oil shale operations, lower dry hole costs and higher natural gas production.
 In the third quarter, Unocal's earnings also reflected higher worldwide natural gas and crude oil prices, compared with a year ago. The nine-months results were impacted by lower crude oil prices and production, compared with the same period in 1991.
 Stegemeier said the company has made significant progress on its program to increase cash flow and reduce debt. "The restructuring charge covers the cost of the voluntary retirement and severance packages accepted by more than 1,100 employees, as well as related reorganization expenses," he said. "This work force reduction and other operating improvements are expected to contribute $200 million to Unocal's after-tax cash flow in 1993."
 Stegemeier also noted the proceeds from the $513 million private placement of convertible preferred stock in July are being used to accelerate the debt reduction program. Unocal's total debt at Sept. 30 was $4.24 billion, down from $4.73 billion at year-end 1991. At the end of the third quarter, the company's cash and cash equivalent balance was $325 million, up from $175 million at the end of 1991. The company expects to reduce total debt by an additional $400 million in the fourth quarter of this year.
 Cash flow from operating activities and asset sales, before working capital changes, was $276 million in the third quarter, up from $268 million a year ago. For the nine months, cash flow was $1.13 billion, up from $868 million in 1991. The higher cash flow included increased pre-tax proceeds from asset sales, which were for $29 million in the quarter and $354 million for the year-to-date.
 Third quarter revenues were $2.51 billion, down from $2.68 billion in 1991. The nine-months revenues were $7.60 billion, compared with $8.13 billion a year ago.
 Capital expenditures for the quarter totaled $215 million, down from $296 million in the same quarter last year. For the year-to- date, capital expenditures were $706 million, down from $884 million in 1991. The prior year's capital expenditures reflected higher spending on oil and gas exploration and production activities.
 Exploration expense for the third quarter 1992 was $37 million, compared with $42 million in the third quarter last year. For the nine months, exploration expense was $127 million, compared with $140 million in 1991.
 Petroleum Exploration and Production
 Third quarter earnings from Unocal's petroleum exploration and production operations totaled $117 million, up 48 percent from $79 million in 1991. Year-to-date earnings were $312 million, compared with $316 million in 1991. The third quarter and nine- months results reflected foreign exploration income tax benefits and lower dry hole costs. The quarter results also reflected higher crude oil and natural gas prices. For the nine months, worldwide crude oil production and prices trailed behind 1991 levels.
 Net worldwide crude oil and condensate production for the third quarter averaged 245,000 barrels per day, compared with 250,300 barrels per day a year ago. Worldwide average sales price for crude and condensate was $17.03 per barrel in the third quarter, up from $16.04 per barrel in 1991.
 Third quarter net daily worldwide natural gas production averaged 1,564 million cubic feet in 1992, up from 1,502 million cubic feet a year ago. Average natural gas sales price was $1.92 per thousand cubic feet (mcf), up from $1.72 per mcf last year. The company's average sales price for domestic natural gas was $1.64 per mcf in the quarter, up from $1.44 per mcf a year ago.
 Refining, Marketing and Transportation
 Unocal's refining, marketing and transportation segment recorded earnings of $15 million in the third quarter 1992, compared with $16 million in the same period last year. Nine-months earnings were $64 million, up from $19 million in 1991. Excluding special items, earnings were $36 million for the quarter and $84 million for the nine months. This improvement reflected integration of recently purchased Carson refinery into Unocal's system and higher product margins in the West Coast market.
 Sales of petroleum products averaged 393,200 barrels per day in the quarter, compared with 425,400 barrels per day a year ago. The lower sales were due primarily to the phasing out of motor fuels marketing in the Southeastern United States.
 Chemicals
 Unocal's chemicals segment posted a loss of $2 million in the third quarter, compared with earnings of $6 million last year. Year- to-date earnings were $23 million, down from $44 million in 1991. The year-ago results included the retail chemical distribution and polymers businesses that were sold earlier this year.
 Geothermal
 Geothermal earnings for the quarter were $8 million, down from $13 million a year ago. For the nine months, earnings from geothermal operations were $18 million, compared with $29 million in 1991. The lower earnings for the quarter and year-to-date reflected lower steam prices and volumes and a provision for litigation.
 Daily geothermal energy production in the third quarter averaged 22.6 million kilowatt-hours, down from 23.0 million kilowatt-hours in the third quarter of 1991.
 Other Operations
 Other business operations recorded a loss of $8 million for the quarter, compared with a loss of $1 million in 1991. For the nine months, losses were $10 million, compared with a $16 million loss for the same period last year. The quarter and year-to-date results reflected lower earnings from minerals affiliates in Brazil, offset by lower losses from oil shale activities due to suspension of operations in 1991. The year-to-date results also reflected improved earnings from minerals operations.
 Corporate and Unallocated
 Corporate and unallocated expense for the third quarter was $119 million, compared with $104 million in 1991. In the first nine months of 1992, corporate and unallocated expense was $314 million, compared with $303 million a year ago. The increase was due primarily to higher litigation and restructuring costs. The year-to- date results included higher net interest expense.
 UNOCAL CORP.
 1992 Earnings Press Release Supplement
 (Dollars in millions except per share amounts)
 (Unaudited)
 For the For the
 Three Months Ended Nine Months Ended
 Sept., 30, Sept. 30, Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Reported earnings $11 $9 $117 $89
 Less: Special items
 Cumulative effect
 of accounting
 change for
 income taxes
 (SFAS 109) --- --- 24 ---
 Restructuring
 costs (32)(A) --- (34)(B) ---
 Major asset sales --- --- (1)(C) ---
 Unusual
 environmental/
 litigation costs (32)(D) (11)(E) (46)(F) (23)(E)
 Amortization of
 costs related to
 UXC formation --- (3)(E) --- (8)(E)
 Natural gas
 contract
 settlement --- --- --- 24(G)
 Tax benefit on
 foreign
 exploration
 expense 10(H) --- 31(H) ---
 Total special
 items ($54) ($14) ($26) ($7)
 Adjusted earnings $65 $23 $143 $96
 Dividends on
 preferred stock 8 --- 8 ---
 Adjusted earnings
 applicable to
 common shares $57 $23 $135 $96
 Adjusted earnings
 per common
 share $0.24 $0.10 $0.57 $0.41
 (A) (6) included in Domestic Exploration and Production (E&P); (1) in foreign E&P; (18) in Refining, Marketing and Transportation (R,M&T); (1) in Chemicals; (1) in Geothermal; (1) in Other; (4) in Corporate and Unallocated.
 (B) (6) included in domestic E&P; (3) in Foreign E&P; (18) in R,M,&T; (1) in Chemicals; (1) in Geothermal; (1) in Other; (4) in Corporate and Unallocated.
 (C) Included in R,M&T segment.
 (D) (3) included in R,M&T; (3) in Geothermal; (7) in Foreign E&P; (19) in Corporate and Unallocated.
 (E) Included in corporate and Unallocated segment.
 (F) (1) included in R,M&T; (6) in Geothermal; (9) in Foreign E&P; (30) in Corporate and Unallocated.
 (G) Included in Domestic E&P segment.
 (H) Included in Foreign E&P segment.
 UNOCAL CORP.
 Financial Data
 (Dollars in millions except per share amounts)
 (Unaudited)
 For the Three Months For the Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1992 1991 1992 1991
 Total revenues(A) $2,506 $2,684 $7,600 $8,126
 Costs and other
 deductions(A) 2,410 2,654 7,354 7,916
 Restructuring costs 51 --- 55 ---
 Earnings before taxes
 on income 45 30 191 210
 Federal and other
 taxes on income 34 21 98 121
 Earnings before
 cumulative effect of
 accounting change 11 9 93 89
 Cumulative effect of
 accounting change for
 income taxes --- --- 24 ---
 Net earnings $11 $9 $117 $89
 Dividends on
 preferred stock 8 --- 8 ---
 Net earnings applicable
 to common shares $3 $9 $109 $89
 Earnings per common
 share: (B)
 Before cumulative
 effect of accounting
 change $0.01 $0.04 $0.36 $0.38
 Cumulative effect of
 accounting change --- --- 0.10 ---
 Net earnings $0.01 $0.04 $0.46 $0.38
 (A) Includes consumer
 excise taxes of $253 $262 $754 $793
 (B) Based on weighted
 average common shares
 outstanding
 (in millions) 240 235 238 235
 UNOCAL CORP.
 Net Earnings By Business Segment
 (Millions of dollars)
 (Unaudited)
 For the Three Months For the Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1992 1991(D) 1992 1991(D)
 Petroleum
 Exploration and
 production
 United States $60 $30 $133 $157
 Foreign 57 49 179 159
 Refining,
 marketing and
 transportation(A) 15 16 64 19
 Chemicals (2) 6 23 44
 Geothermal 8 13 18 29
 Other(C) (8) (1) (10) (16)
 Corporate and
 unallocated(B) (119) (104) (314) (303)
 Subtotal 11 9 93 89
 Cumulative effect of
 accounting change
 for income taxes --- --- 24 ---
 Total $11 $9 $117 $89
 (A) Includes equity
 in earnings of
 affiliates
 (after-tax) of $12 $15 $45 $33
 (B) Includes net
 interest expense
 (after-tax) of ($63) ($63) ($192) ($179)
 (C) Includes minerals,
 oil shale and
 real estate operations.
 (D) Restated to conform to the 1992 presentation.
 UNOCAL CORP.
 Operating Highlights
 (Unaudited)
 For the Three Months For the Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1992 1991 1992 1991
 Net daily
 production(A)
 Crude oil and
 condensate
 (thousand
 barrels):
 United States 143.3 152.1 151.0 156.7
 Foreign 101.7 98.2 100.6 102.0
 Total 245.0 250.3 251.6 258.7
 Natural gas
 (million cubic
 feet):
 United States 901 883 937 902
 Foreign 663 619 634 625
 Total 1,564 1,502 1,571 1,527
 Natural gas liquids
 (thousand
 barrels) 15.9 17.6 18.2 17.2
 Geothermal (million
 kilowatt-hours) 22.6 23.0 22.8 23.4
 Input to crude oil
 processing units
 (thousand barrels
 daily)(B) 296.1 269.4 284.9 261.0
 Sales of petroleum
 products (thousand
 barrels daily)(B) 393.2 425.4 414.9 433.8
 Capital expenditures
 (millions of
 dollars) 215 296 706 884
 Exploration expense
 (millions of
 dollars) 37 42 127 140
 Cash flows from
 operating activities
 and asset sales
 (millions of dollars)
 Excluding working
 capital changes 276 268 1,134 868
 Including working
 capital changes 284 407 949 655
 Average sales prices
 Crude oil and
 condensate
 (per barrel):
 United States $16.48 $15.37 $15.12 $15.68
 Foreign $18.13 $17.45 $17.13 $17.60
 Worldwide $17.03 $16.04 $15.77 $16.31
 Natural gas
 (per mcf):
 United States $1.64 $1.44 $1.62 $1.64
 Foreign $2.29 $2.14 $2.22 $2.05
 Worldwide $1.92 $1.72 $1.86 $1.81
 (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- 10/26/92
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL) CO: Unocal Corp. ST: California IN: OIL SU: ERN


JB-JL -- LA008 -- 4724 10/26/92 11:17 EST
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