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UNOCAL POSTS THIRD QUARTER NET EARNINGS OF $70 MILLION; OPERATING EARNINGS OF $91 MILLION UP 40 PERCENT

 LOS ANGELES, Oct. 25 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) today reported net earnings for the third quarter 1993 of $70 million, up from $11 million in the same period a year ago. Earnings per common share were 25 cents in the third quarter 1993, vs. 1 cent per common share last year.
 In the third quarter of 1992 Unocal recorded a charge of $32 million for restructuring costs and for the third quarter of 1993 a charge of $14 million for the effect of the higher federal tax rate on deferred taxes.
 Excluding these and other special items (detailed in attached table), Unocal's operating earnings were $91 million, or 34 cents per common share, up 40 percent from $65 million, or 24 cents per common share, in 1992.
 For the first nine months, Unocal's net earnings increased to $169 million, or 59 cents per common share, in 1993, from $117 million, or 46 cents per common share, in 1992.
 Excluding the effects of accounting changes and other special items, adjusted nine-month earnings were $277 million, up from $143 million in 1992. Adjusted earnings per common share for the nine months were $1.04 in 1993, vs. 57 cents in 1992.
 Cash flow from operations, before working capital changes, increased to $346 million for the quarter, from $247 million a year ago. For the nine months, cash flow was $1.06 billion, up from $780 million in 1992. The increased cash flow reflected improe?d operating results.
 Richard J. Stegemeier, Unocal's chairman and chief executive officer, said the higher quarterly and year-to-date operating results reflected improved earnings from West Coast refining and marketing operations, higher domestic natural gas prices, lower worldwide exploration expense, lower interest expense, and other cost reductions. Lower worldwide crude oil prices and production partially offset the positive factors.
 Unocal's domestic natural gas production was up by more than 6 percent this quarter. This increase was partly due to production curtailment in 1992 caused by Hurricane Andrew but also reflects the positive impact of Unocal's North American development drilling program. Stegemeier said he expected the trend to continue. Unocal has several additional development projects -- particularly in the Gulf of Mexico -- due on stream over the next several months.
 Unocal launched a three-year accelerated drilling program in 1993 to expand development of the company's U.S. proven undeveloped crude oil and natural gas reserves. With this program and overseas projects, the company expects to increase worldwide natural gas production by more than 25 percent and crude oil and condensate production by about 14 percent over the next three years, Stegemeier said.
 He also noted that the company is now nearly 80 percent of the way toward meeting its goal of generating $700 million in after-tax proceeds from asset sales. Through the third quarter 1993, the company has realized proceeds of $548 million (after tax) from asset sales under the program announced in April 1992.
 Third-quarter revenues were $1.96 billion, down from $2.51 billion in 1992. Nine-month 1993 revenues were $6.38 billion, down from $7.60 billion in 1992. The lower revenues reflected the effects of the sale of several businesses in 1992 and 1993.
 Third-quarter 1993 capital expenditures rose to $324 million, from $215 million a year ago. Year to date, 1993 capital expenditures were $813 million, up from $706 million in 1992. The increases reflected the company's accelerated development drilling program.
 Exploration expenses for the third quarter totaled $33 million, down from $37 million in 1992. For the nine months, exploration expenses were $88 million, down from $127 million in 1992.
 Third-quarter dry hole costs were $10 million, up from $6 million in the same quarter of 1992. For the nine months, dry hole costs fell to $28 million, from $48 million a year ago.
 Petroleum Exploration and Production
 Third-quarter 1993 operating earnings (excluding special items) from petroleum exploration and production totaled $101 million, vs. $121 million in 1992. For the nine months, operating earnings totaled $343 million, up from $299 million a year ago.
 The decrease in third-quarter operating earnings reflected lower worldwide crude oil prices and production, offset partially by higher domestic natural gas prices and production and lower exploration expense.
 Improved year-to-date operating results reflected higher domestic natural gas prices and lower exploration expense. These were offset partially by lower crude oil prices and production and lower foreign natural gas prices.
 While domestic natural gas production increased for the quarter, foreign production decreased. This decline reflected a reduction in Unocal's Gulf of Thailand pipeline allocation as of July 1993 caused by new production from a field developed by another company. Once a new pipeline begins operation later this year, Unocal expects its Gulf of Thailand production to increase. Gross production is expected to average 750 million cubic feet per day in 1994. This compares with a first-half 1993 daily average of 822 million cubic feet of gross production. Unocal holds an average 75 percent interest in seven fields in Thailand.
 Net worldwide crude oil and condensate production for the third quarter averaged 238,800 barrels per day, down from 245,000 barrels per day a year ago. The company's worldwide average sales price for crude and condensate was $13.76 per barrel in the quarter, vs. $17.03 per barrel in 1992.
 Third-quarter net daily worldwide natural gas production averaged 1,545 million cubic feet in 1993, down from 1,564 million cubic feet a year ago. Unocal's worldwide natural gas sales price for the third quarter 1993 averaged $2.04 per thousand cubic feet (mcf), up from $1.95 per mcf last year. The company's average sales price for domestic natural gas was $1.96 per mcf in the quarter, up from $1.71 per mcf for the same period last year.
 Refining, Marketing, and Transportation
 Third-quarter operating earnings for the company's refining, marketing, and transportation segment rose to $56 million, from $36 million in 1992. Nine-month operating earnings totaled $136 million in 1993, up from $84 million in 1992. The improvement in operating earnings for the quarter and year to date was due primarily to higher West Coast margins. The nine-month results also benefited from lower losses from the company's Southeast U.S. marketing operations, which are being phased out.
 The sale of the Auto/TruckStop network in the second quarter 1993 and the continued phase-out of Southeast U.S. marketing contributed to a decline in petroleum product sales. For the quarter, petroleum product sales averaged 327,400 barrels per day in 1993, vs. 393,200 barrels per day in 1992.
 The improvement in operating earnings for the quarter and year to date was due primarily to higher West Coast margins. The nine-month results also benefited from lower losses from the company's Southeast U.S. marketing operations, which are being phased out.
 Chemicals
 The company's chemicals segment recorded operating earnings in the third quarter 1993 of $6 million, compared with a $1 million loss the year before. Year-to-date operating earnings were $35 million in 1993, vs. $24 million in 1992. This increase was largely due to losses recorded last year by businesses, which have been sold, and improved earnings in petroleum coke operations.
 Geothermal
 Excluding special items, geothermal earnings for the third quarter 1993 were $4 million, compared with $12 million the year before. The adjusted nine-month earnings were $16 million, compared with $25 million in 1992. The quarter and year-to-date decreases reflected the loss of earnings resulting from the sale of the company's Imperial Valley, Calif., geothermal operations.
 Corporate and Other
 Excluding special items, corporate expenses were $76 million in the third quarter 1993, down from $103 million in 1992. Nine-month expenses were $253 million in 1993, compared with $289 million the year before.
 The quarter and year-to-date results reflected lower net interest expense.
 UNOCAL CORP.
 Operating Highlights
 (Unaudited)
 For the Three Months For the Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 Net daily production(a)
 Crude oil and
 condensate (thousand
 barrels):
 United States 143.9 143.3 148.4 151.0
 Foreign 94.9 101.7 97.5 100.6
 Total 238.8 245.0 245.9 251.6
 Natural gas (million
 cubic feet):
 United States 956 901 936 937
 Foreign 589 663 660 634
 Total 1,545 1,564 1,596 1,571
 Natural gas liquids
 (thousand barrels) 19.2 15.9 19.4 18.2
 Geothermal (million
 kilowatt-hours) 19.6 22.6 20.4 22.8
 Input to crude oil
 processing units
 (thousand barrels
 daily)(b) 292.8 296.1 288.2 284.9
 Sales of petroleum
 products (thousand
 barrels daily)(b) 327.4 393.2 345.9 414.9
 Capital expenditures
 (millions of dollars) 324 215 813 706
 Exploration expense
 (millions of dollars) 33 37 88 127
 Dry hole costs (millions
 of dollars) 10 6 28 48
 Cash flows from operating
 activities (millions of
 dollars)
 Excluding working capital
 changes 346 247 1,060 780
 Including working
 capital changes 186 255 679 595
 Cash flows from
 asset sales (millions
 of dollars) 33 29 579 354
 Average sales prices
 Crude oil and condensate
 (per barrel):
 United States $13.28 $16.48 $14.39 $15.12
 Foreign $14.74 $18.13 $15.83 $17.13
 Worldwide $13.76 $17.03 $14.86 $15.77
 Natural gas (per mcf):
 United States $1.96 $1.71 $1.95 $1.64
 Foreign $2.16 $2.29 $2.07 $2.22
 Worldwide $2.04 $1.95 $1.99 $1.87
 (a) Includes net profits type agreements on a gross basis.
 (b) Includes the company's 50 percent equity portion of The UNO-VEN Company.
 UNOCAL CORP.
 Financial Data
 (Unaudited)
 (Dollars in millions except per share amounts)
 For the Three Months For the Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 Total revenues(a) $1,963 $2,506 $6,379 $7,600
 Costs and other
 deductions(a) 1,819 2,461 5,825 7,409
 Earnings before
 income taxes 144 45 554 191
 Income taxes 74 34 255 98
 Earnings before cumulative
 effect of accounting
 changes 70 11 299 93
 Cumulative effect of
 accounting changes --- --- (130) 24
 Net earnings $70 $11 $169 $117
 Dividends on preferred stock 9 8 27 8
 Net earnings applicable
 to common shares $61 $3 $142 $109
 Earnings per common share(b):
 Before cumulative effect
 of accounting changes $0.25 $0.01 $1.13 $0.36
 Cumulative effect of
 accounting changes --- --- (0.54) 0.10
 Net earnings $0.25 $0.01 $0.59 $0.46
 (a) Includes consumer
 excise taxes of $194 $253 $608 $754
 (b) Based on weighted
 average common shares
 outstanding (in millions) 241 240 241 238
 Net Earnings By Business Segment
 (Unaudited)
 (Millions of dollars)
 For the Three Months For the Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 Petroleum
 Exploration and Production
 United States $56 $60 $209 $133
 Foreign 50 57 152 179
 Refining, Marketing and
 Transportation(a) 49 15 143 64
 Chemicals 5 (2) 33 23
 Geothermal 3 8 41 18
 Corporate and Other(b)(c) (93) (127) (279) (324)
 Sub-total 70 11 299 93
 Cumulative effect of
 accounting changes --- --- (130) 24
 Total $70 $11 $169 $117
 (a) Includes equity in
 earnings of affiliates
 (after-tax) of $11 $12 $40 $45
 (b) Includes minerals and real estate operations.
 (c) Includes net interest
 expense (after-tax) of ($48) ($63) ($146) ($192)
 UNOCAL CORP.
 1993 Earnings Press Release Supplement
 Special Adjustments - Consolidated
 (Unaudited)
 (Dollars in millions except per share amounts)
 For the Three For the Nine
 Months Ended Months Ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Reported Earnings $70 $11 $169 $117
 Less special items:
 Cumulative effect of
 accounting changes
 - for postretirement
 health care costs
 (SFAS 106) --- --- (121) ---
 - for postemployment
 benefits (SFAS 112) --- --- (9) ---
 - for income taxes
 (SFAS 109) --- --- --- 24
 Major asset sales 9 --- 66 (1)
 Unusual environmental/
 litigation costs (16) (32) (30) (46)
 Restructuring costs --- (32) --- (34)
 Effect of Federal tax
 rate change on
 deferred taxes (14) --- (14) ---
 Tax benefit on foreign
 exploration expense --- 10 --- 31
 Total Special Items (21) (54) (108) (26)
 Adjusted Earnings 91 65 277 143
 Less: Dividends on
 Preferred Stock 9 8 27 8
 Adjusted Earnings applicable
 to Common Shares $82 $57 $250 $135
 Adjusted Earnings per
 Common Share $0.34 $0.24 $1.04 $0.57
 UNOCAL CORP.
 1993 Earnings Press Release Supplement
 Special Adjustments Allocated by Business Segments
 (Unaudited)
 (Dollars in millions except per share amounts)
 For the Three For the Nine
 Months Ended Months Ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992
 U.S. Petroleum
 Exploration and Production
 Reported Earnings $56 $60 $209 $133
 Less special items:
 Major asset sales (1) --- 17 ---
 Effect of Federal tax rate
 change on deferred taxes (5) --- (5) ---
 Restructuring costs --- (6) --- (6)
 Adjusted U.S. E&P Earnings $62 $66 $197 $139
 Foreign Petroleum
 Exploration and
 Production
 Reported Earnings $50 $57 $152 $179
 Less special items:
 Major asset sales 10 --- 5 ---
 Unusual environmental/
 litigation costs --- (7) --- (9)
 Effect of Federal tax
 rate change on deferred
 taxes 1 --- 1 ---
 Restructuring costs --- (1) --- (3)
 Tax benefit on foreign
 exploration expense --- 10 --- 31
 Adjusted Foreign E&P
 Earnings $39 $55 $146 $160
 Refining, marketing and
 transportation
 Reported Earnings $49 $15 $143 $64
 Less special items:
 Major asset sales --- --- 15 (1)
 Unusual environmental/
 litigation costs --- (3) (1) (1)
 Effect of Federal tax
 rate change on deferred
 taxes (7) --- (7) ---
 Restructuring costs --- (18) --- (18)
 Adjusted RM&T Earnings $56 $36 $136 $84
 Chemicals
 Reported Earnings $5 ($2) $33 $23
 Less special items:
 Major asset sales --- --- (1) ---
 Effect of Federal tax rate
 change on deferred taxes (1) --- (1) ---
 Restructuring costs --- (1) --- (1)
 Adjusted Chemicals Earnings $6 ($1) $35 $24
 Geothermal
 Reported Earnings $3 $8 $41 $18
 Less special items:
 Major asset sales --- --- 26 ---
 Unusual environmental/
 litigation costs --- (3) --- (6)
 Effect of Federal tax rate
 change on deferred taxes (1) --- (1) ---
 Restructuring costs --- (1) --- (1)
 Adjusted Geothermal
 Earnings $4 $12 $16 $25
 Corporate and Other
 Reported Earnings ($93) ($127) ($279) ($324)
 Less special items:
 Major asset sales --- --- 4 ---
 Unusual environmental/
 litigation costs (16) (19) (29) (30)
 Effect of Federal tax rate
 change on deferred taxes (1) --- (1) ---
 Restructuring costs --- (5) --- (5)
 Adjusted Corporate and
 Other ($76) ($103) ($253) ($289)
 Total Adjusted Earnings $91 $65 $277 $143
 Less: Dividends on
 preferred stock 9 8 27 8
 Adjusted Earnings Applicable
 to Common Shares $82 $57 $250 $135
 Adjusted Earnings per
 Common Share $0.34 $0.24 $1.04 $0.57
 -0- 10/25/93
 /CONTACT: Janet McClintock, 213-977-5047/
 (UCL)


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

MF-LS -- LA013 -- 6409 10/25/93 14:25 EDT
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