Printer Friendly

UNOCAL REPORTS $103 MILLION EARNINGSFOR FOURTH QUARTER; STRONG OPERATING GAINS

 LOS ANGELES, Jan. 25 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) today reported preliminary net earnings for the fourth quarter 1992, of $103 million, compared with a loss of $16 million for the same period a year ago. After dividends on preferred stock, earnings per common share were 39 cents in the quarter, vs. a loss of 7 cents last year.
 Excluding special items (detailed in the attached table), Unocal's fourth-quarter earnings from operations were $91 million, or 34 cents per common share, up from $21 million, or 9 cents per common share, in 1991.
 For the full year 1992, Unocal's preliminary net earnings were $220 million, or 85 cents per common share (after dividends on preferred stock). Excluding special items, Unocal's earnings from operations for the year were $234 million, or 91 cents per common share.
 This compares with reported full-year 1991 earnings of $73 million, or 31 cents per common share. Excluding special items, the full-year 1991 earnings were $117 million, or 50 cents per common share.
 Cash flow from operating activities and asset sales, before working capital changes, was $449 million in the fourth quarter, up from $375 million a year ago. For the year, cash flow was $1.58 billion, compared with $1.24 billion in 1991.
 "This quarter begins to reflect the major changes we've made in our operating structure over the past few years, as well as a significant improvement in earnings from continuing operations," said Richard J. Stegemeier, Unocal chairman and chief executive officer.
 He pointed out that Unocal made significant progress on the expense cuts, asset sales and debt-reduction targets the company announced last April. Earnings were also helped by higher natural gas prices and volumes, and improved marketing margins.
 "We realized proceeds of $198 million (after-tax) in 1992 from asset sales that were part of the initiative announced in April," Stegemeier said. "In addition, Unocal realized $235 million from the sale of assets that were offered prior to the April announcement."
 Stegemeier also said that the company was able to pare its total debt by more than $1 billion in 1992 to $3.7 billion at the end of the year. While interest expense was down in 1992, the major impact of the debt reduction will be realized in 1993. The company expects to reduce total debt by another $500 million over the next four years.
 The fourth-quarter 1992 special items included charges of $20 million for the write-down of the company's interest in a Canadian partnership and various assets that have been shut down or sold -- surplus service station equipment, shale oil equipment and mineral operations. The results also reflect an $11 million charge for unusual environmental and litigation costs. The company posted gains of $30 million from the sale of its interest in an offshore Netherlands project and several Canadian oil and gas properties, and $13 million from deferred income tax benefits related to foreign exploration expense.
 The fourth-quarter operating results reflected higher average worldwide natural gas prices and volumes, and increased margins on the sale of refined products.
 Fourth-quarter revenues were $2.46 billion, down from $2.77 billion in 1991. The full-year revenues were $10.06 billion, down from $10.90 billion a year ago. The lower revenues were due partly to the sale of several businesses during 1992.
 Capital expenditures for the fourth quarter totaled $253 million, compared with $586 million in the same quarter last year. For the full-year 1992, capital expenditures were $959 million, down from $1.47 billion the previous year. The 1991 capital expenditures included purchase of a portion of the Shell Oil refinery in Carson, Calif., in the fourth quarter.
 Fourth-quarter exploration expense was $43 million, compared with $52 million a year ago. Full-year 1992 exploration expense was $170 million, down from $192 million the previous year.
 Petroleum Exploration and Production
 Fourth-quarter earnings from Unocal's petroleum exploration and production operations totaled $150 million, up from $107 million a year ago. Full-year earnings were $462 million, up from $423 million in 1991.
 Excluding special items, petroleum exploration and production earnings for the quarter were $116 million in 1992, vs. $97 million in 1991. Full-year earnings, adjusted for special items, were $415 million for 1992, compared with $389 million the year before.
 The improvement in earnings for the quarter and full year reflected higher worldwide natural gas prices and production volumes and lower exploration and production costs. The improvement was offset partially by lower crude oil production.
 Net worldwide crude oil and condensate production for the fourth quarter averaged 251,000 barrels per day, down from 252,700 barrels per day a year ago. The company's worldwide average sales price for crude and condensate was $16.23 per barrel in the fourth quarter, down from $16.33 per barrel in the same period a year ago.
 Fourth-quarter daily worldwide natural gas production averaged 1,609 million cubic feet in 1992, up 6 percent from 1,513 million cubic feet a year ago. The average natural gas sales price was $2.05 per thousand cubic feet (mcf), compared with $1.91 per mcf the previous year.
 Refining, Marketing and Transportation
 Unocal's refining, marketing and transportation segment recorded earnings of $38 million for the fourth quarter, down from $52 million a year ago. Full-year earnings were $102 million, up 44 percent from $71 million in 1991.
 Excluding special items, fourth-quarter earnings for the segment were $43 million in 1992, up from $21 million a year ago. Full-year 1992 earnings from operations, excluding special items, were $127 million, up from $40 million in 1991.
 The higher adjusted earnings reflected improved West Coast refining and marketing margins, including the benefits from the integration of the Carson refinery, and stronger earnings from the company's UNO-VEN joint venture in the Midwest. These gains were offset partially by losses from Southeastern U.S. marketing operations, which are being phased out.
 Fourth-quarter 1992 sales of petroleum products averaged 406,000 barrels per day, down from 443,100 barrels per day the previous year. The lower sales volumes reflected the phase-out of marketing operations in the Southeast.
 Chemicals
 Unocal's chemicals operations broke even in the fourth quarter, and recorded earnings of $23 million for the full-year 1992. For 1991, the chemicals segment had earnings of $3 million in the fourth quarter and $47 million for the full year.
 The 1992 results included residual expenses associated with the retail chemicals distribution and polymers manufacturing businesses, which were sold in 1992. The prior year's results included earnings from the company's wholesale chemicals distribution business, which was transferred to the refining, marketing and transportation segment in 1992.
 The 1992 earnings reflected higher agricultural product sales and lower petroleum coke earnings.
 Geothermal
 Geothermal operations posted earnings of $20 million in the fourth quarter 1992, up from $8 million a year ago. Full-year earnings from geothermal operations were $38 million, compared with $37 million in 1991. The quarter and full-year results reflected lower exploration expenses, which were offset partially by a litigation provision taken earlier in 1992.
 Daily geothermal energy production averaged 22.4 million kilowatt-hours in the fourth quarter 1992, compared with 22.6 million kilowatt-hours in the same period a year ago.
 Corporate and Other
 Corporate expense and net losses from other businesses, including real estate and mineral operations, were $105 million in the fourth quarter 1992, significantly reduced from $186 million a year ago. For the full-year, corporate expenses and losses in 1992 were $429 million, compared with $505 million in 1991.
 Excluding special adjustments, the segment had a loss of $88 million in the fourth quarter, compared with $108 million for the same period in 1991. The full-year adjusted loss was $377 million, compared with $396 million the year before.
 The adjusted results reflect lower interest expense, cuts in administrative and general expense and improved real estate operations.
 Stegemeier noted that Unocal's earnings for the first quarter 1993 will reflect the company's adoption of FASB 106 on an immediate recognition basis. The standard changes the accounting for certain post-retirement employee benefits. Unocal expects to take a one-time after-tax charge of approximately $120 million for this accounting change.
 UNOCAL CORP.
 1992 Earnings Press Release Supplement
 Dollars in millions except per share amounts
 (Unaudited)
 For the For the
 Three Months Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Reported Earnings $103 ($16) $220 $73
 Less: Special items
 Cumulative effect of
 acctg. change for
 income taxes
 (SFAS 109) --- --- 24 ---
 Write-downs
 of assets (20)(a) (67)(b) (20)(a) (67)(b)
 Restructuring costs --- --- (34)(c) ---
 Major asset sales 30(d) 41(e) 29(f) 41(e)
 Unusual environmental/
 litigation costs (11)(b) (8)(b) (57)(g) (31)(b)
 Amort. of costs re.
 to UXC formation --- (3)(b) --- (11)(b)
 Natural gas
 contract settlements --- --- --- 24(h)
 Tax benefit on foreign
 expl. expense 13(d) --- 44(d) ---
 Total Special Items 12 (37) (14) (44)
 Adjusted Earnings 91 21 234 117
 Less: Dividends on
 Preferred Stock 9 --- 17 ---
 Adjusted Earnings
 applicable to
 Common Shares $82 $21 $217 $117
 Adj. Earnings
 per Common Share $0.34 $0.09 $0.91 $0.50
 (a) (9) included in Foreign Exploration and Production (E&P); (5) in Refining, Marketing and Transportation (R,M & T); (6) in Corporate and Other
 (b) Included in Corporate and Other
 (c) (6) included in Domestic E&P; (3) in Foreign E&P; (18) in R,M & T; (1) in Chemicals; (1) in Geothermal; (5) in Corporate and Other
 (d) Included in Foreign E&P segment
 (e) 31 Included in R,M & T segment; 10 in Foreign E&P
 (f) 30 included in Foreign E&P segment; (1) included in R,M & T segment
 (g) (1) included in R,M & T; (6) in Geothermal; (9) in Foreign E&P; (41) in Corporate and Other
 (h) Included in Domestic E&P segment
 UNOCAL CORP.
 Financial Data
 Dollars in millions except per share amounts
 (Unaudited)
 For the Three Months For the 12 Months
 Ended Dec. 31, Ended Dec. 31,
 1992 1991 1992 1991
 Total revenues(a) $2,461 $2,769 $10,061 $10,895
 Costs and other
 deductions(a) 2,303 2,767 9,712 10,683
 Earnings before taxes 158 2 349 212
 Income taxes 55 18 153 139
 Earnings before
 cumulative effect
 of acctg. change 103 (16) 196 73
 Cumulative effect
 of acctg. change
 for income taxes --- --- 24 ---
 Net earnings $103 ($16) $220 $73
 Dividends on
 preferred stock 9 --- 17 ---
 Net earnings applicable
 to common shares $94 ($16) $203 $73
 Earnings per common
 share: (b)
 Before cumulative effect
 of accounting
 change $0.39 ($0.07) $0.75 $0.31
 Cumulative effect of
 accounting change --- --- 0.10 ---
 Net earnings $0.39 ($0.07) $0.85 $0.31
 (a) Includes consumer
 excise taxes of $238 $257 $992 $1,050
 (b) Based on weighted
 average common shares
 outstanding
 (in millions) 241 235 238 235
 UNOCAL CORP.
 Net Earnings by Business Segment
 Millions of dollars
 (Unaudited)
 For the Three Months For the 12 Months
 Ended Dec. 31, Ended Dec. 31,
 1992 1991(d) 1992 1991(d)
 Petroleum
 Exploration and
 Production
 United States $86 $60 $219 $217
 Foreign 64 47 243 206
 Refining, Marketing
 and
 Transportation(a) 38 52 102 71
 Chemicals 0 3 23 47
 Geothermal 20 8 38 37
 Corporate and
 Other (b) (c) (105) (186) (429) (505)
 Sub-total 103 (16) 196 73
 Cumulative effect of
 acctg. change for
 income taxes --- --- 24 ---
 Total $103 ($16) $220 $73
 (a) Includes equity
 in earnings of
 affiliates
 (after-tax) of $18 $15 $63 $48
 (b) Includes net
 interest expense
 (after-tax) of ($54) ($61) ($246) ($240)
 (c) Results for
 the fourth quarter
 and year-to-date
 1991 included
 after-tax losses
 of $46 million for
 the write-down
 related to the
 Los Angeles Refinery
 hydrotreater project
 and $16 million for
 the West Sacramento
 fertilizer
 manufacturing plant.
 (d) Restated to conform
 to the 1992 presentation.
 UNOCAL CORP.
 Operating Highlights
 (Unaudited)
 For the Three Months For the 12 Months
 Ended Dec. 31, Ended Dec. 31,
 1992 1991 1992 1991
 Net daily
 production (a)
 Crude oil and
 condensate (thousand
 barrels):
 United States 152.2 155.0 151.3 156.3
 Foreign 99.0 97.7 100.2 100.9
 Total 251.2 252.7 251.5 257.2
 Natural gas
 (million cubic feet):
 United States 921 891 933 899
 Foreign 688 622 647 624
 Total 1,609 1,513 1,580 1,523
 Natural gas
 liquids
 (thousand barrels) 17.6 17.1 18.0 17.2
 Geothermal
 (million kilowatt-
 hours) 22.4 22.6 22.7 23.2
 Input to crude oil
 processing units
 (thousand barrels
 daily)(b) 290.7 267.5 286.3 262.6
 Sales of petroleum
 products (thousand
 barrels daily)(b) 406.0 443.1 417.0 436.2
 Capital expenditures
 (millions
 of dollars) 253 586 (c) 959 1,470(c)
 Exploration expense
 (millions of dollars) 43 52 170 192
 Cash flows from
 operating activities
 and asset sales
 (millions of dollars)
 Excluding working
 capital changes 449 375 1,583 1,243
 Including working
 capital changes 665 524 1,614 1,179
 Average sales prices
 Crude oil and
 condensate (per barrel):
 United States $15.51 $15.20 $15.34 $15.67
 Foreign $17.69 $18.61 $17.33 $17.86
 Worldwide $16.23 $16.33 $15.99 $16.40
 Natural gas (per mcf):
 United States $2.07 $1.71 $1.74 $1.66
 Foreign $2.02 $2.19 $2.17 $2.09
 Worldwide $2.05 $1.91 $1.92 $1.83
 (a) Includes net profits type agreements on a gross basis.
 (b) Includes the company's 50 percent equity portion of The UNO- VEN Co.
 (c) Includes the acquisition of the Shell Oil refinery in Carson, Calif.
 -0- 1/25/93
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL)


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

EH-BP -- LA022 -- 8520 01/25/93 12:55 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 25, 1993
Words:2294
Previous Article:ARCO DECLARES DIVIDENDS ON THREE CLASSES OF STOCK
Next Article:NATIONWIDE HEALTH PROPERTIES INC. ANNOUNCES 28 PERCENT INCREASE IN YEAR-END OPERATING EARNINGS PER SHARE
Topics:


Related Articles
UNOCAL ANNOUNCES EARNINGS
CHEVRON ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND YEAR 1992
UNOCAL EARNINGS UP 33 PERCENT FOR SECOND QUARTER
UNOCAL POSTS THIRD QUARTER NET EARNINGS OF $70 MILLION; OPERATING EARNINGS OF $91 MILLION UP 40 PERCENT
UNOCAL OPERATING EARNINGS UP BY 48 PERCENT FOR YEAR; AT $70 MILLION FOR FOURTH QUARTER
UNOCAL POSTS $54 MILLION EARNINGS FOR FIRST QUARTER 1994
UNOCAL REPORTS $50 MILLION EARNINGS FOR SECOND QUARTER
ACCOUNTING CHANGE, ENVIRONMENTAL PROVISION AND SPECIAL ITEMS LEAD TO NET LOSS FOR THE YEAR, UNOCAL SAYS
Unocal Adjusted Fourth Quarter Earnings Rise 63% to $150 Million
Unocal Reports Higher 4Q Earnings on Improved Oil and Natural Gas Prices.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters