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WILLIAMS COMPANIES' 1991 NET INCOME IMPROVES 43 PERCENT

 WILLIAMS COMPANIES' 1991 NET INCOME IMPROVES 43 PERCENT
 TULSA, Okla., Feb. 10 /PRNewswire/ - The Williams Companies Inc. (NYSE: WMB) today reported a 43 percent increase in 1991 net income - $110 million, or $2.35 per share - on revenues of $2.1 billion.
 In 1990, the company reported net income of $77 million, or $1.58 per share, on revenues of $1.8 billion.
 "Not only did we have a banner year in terms of financial performance, we achieved these results in sharp contrast to many others in our industries," said Joseph H. Williams, chairman and chief executive officer of the $4 billion energy transportation and telecommunications corporation.
 "The activity level within the company remains very high as we move forward with our aggressive capital expansion program," Williams said. "Related to this, we announced earlier today our intent to register a common stock offering to ensure the mix of debt and equity that will keep our balance sheet strong and flexible."
 He noted several other developments:
 -- The Kern River Gas Transmission Co. pipeline, which is 50 percent owned by Williams, is scheduled to begin flowing natural gas from Wyoming to California within the next few days. The $984 million pipeline, which took less than a year to construct, ultimately will transport 700 million cubic feet per day (MMcfd).
 -- On Jan. 27, the board of directors announced the company's quarterly common stock dividend had been raised 8.6 percent, to 38 cents per share.
 -- Northwest Pipeline Corp., a member of Williams Western Group, set a new throughput record in 1991 and is on schedule to begin construction this summer of a $373 million, 22 percent expansion of mainline capacity. The added capacity is to be in service in the second quarter next year, subject to final regulatory approval.
 -- Williams Energy Co. fully integrated an acquired pipeline into its Louisiana intrastate system in 1991, contributing to a new combined sales and transportation volume record for the year.
 -- And, the Manzanares natural gas gathering and processing system in the San Juan Basin of New Mexico and Colorado, which handled increasing volumes during 1991 as it was being constructed, entered 1992 fully operational and should reach its delivery capacity of 500 MMcfd into a nearby pipeline hub.
 For the fourth quarter of 1991, The Williams Companies reported net income of $47.5 million, or $1.06 per share, compared with $52.2 million, or $1.19 per share, in the fourth quarter of 1990.
 WilTel, which provides a wide range of sophisticated business telecommunications products and services and operates a national digital network, achieved an operating profit of $82.3 million in 1991, compared with $91 million in 1990.
 The benefit of the 27 percent growth in voice-grade-equivalent circuit miles in 1991 was largely offset by lower prices.
 WilTel reported fourth quarter 1991 operating profit of $20.2 million, compared with $33.2 million in the fourth quarter of 1990, which included $12 million in favorable adjustments.
 Revenues in 1991 were $623 million, compared with $376 million in 1990. Some 83 percent of the increase in revenue is attributable to WilTel Communications Systems, a customer premises equipment company that was acquired in January 1991. Interexchange revenue for 1991 was $250 million, compared with $252 million in 1990.
 Williams Western Group, comprised of subsidiaries that operate a 3,600-mile interstate natural gas pipeline and major gathering and processing systems, achieved an operating profit of $116.2 million in 1991, compared with $105.8 million in 1990.
 The improvement in operating profit is the result of 34 percent higher gathering and processing volumes and mainline volumes that were 8 percent higher than the record volumes of 1990.
 Mainline throughput in 1991 increased to 600 trillion British thermal units (TBtu), eclipsing the previous year's 555 TBtu.
 Largely due to expanded facilities of Williams Field Services Co., a unit of Williams Western, gathering volumes in 1991 were 303 TBtu vs. 238 TBtu, and processing volumes were 255 TBtu, compared with 179 TBtu in 1990.
 Williams Western reported fourth quarter operating profit of $39.1 million, compared with $35.1 million in the same quarter of 1990.
 Williams Natural Gas Co., which operates a 9,800-mile interstate natural gas pipeline system, had an operating profit of $60.4 million in 1991, compared with an operating loss of $10.6 million in 1990.
 Combined sales and transportation volumes increased 24 percent compared to 1990. This was because Williams Natural Gas' largest supplier shipped significant volumes to off-system markets throughout 1991, and power plants used more gas to make electricity during the summer.
 In 1990, the effects of a record warm heating season, the cost of settling a major lawsuit and accruals for the cost of gas contract reformations reduced operating profit by $64 million.
 Combined transportation and gas sales volumes in 1991 were 396 TBtu, compared with 319 TBtu in 1990. Gathering volumes almost doubled to 165 TBtu from 84 TBtu in 1990.
 In the fourth quarter of 1991, Williams Natural Gas reported operating profit of $28.5 million, compared with $20.1 million in the same quarter of 1990.
 Williams Energy Co., which operates a 540-mile intrastate natural gas pipeline system and markets gas nationwide, achieved an operating profit of $16.3 million, compared with $20.1 million in 1990.
 Record sales and transportation volumes that were 10 percent higher than in 1990 were more than offset by lower natural gas sales margins and lower natural gas liquids volumes.
 Fourth quarter operating profit was $6.6 million, compared with $9.8 million in 1990's fourth quarter. This is due to market conditions in late 1990 preceding the war in Iraq that boosted natural gas liquids sales margins.
 Williams Pipe Line Co., which operates an 8,500-mile interstate petroleum products pipeline system, reported an operating profit of $31.1 million in 1991, compared with $30.4 million in 1990.
 Competition, recession and gasoline supply disruptions combined to reduce shipments by 7 percent, while elements of the company's new tariff structure - in place all of 1991 - increased average transportation revenue per barrel an additional 6 percent.
 On Jan. 24, an administrative law judge issued an opinion on the new tariff that resolved a number of critical issues in the company's favor. The decision is subject to review by the Federal Energy Regulatory Commission and additional proceedings are probable.
 In the fourth quarter of 1991, Williams Pipe Line reported an operating profit of $9.9 million, compared with $11.9 million in the fourth quarter of 1990.
 "In summary, our overall 1991 financial results were very gratifying, and I was pleased by our board's decision in January to increase the quarterly common stock dividend," Williams said. "We made huge strides during the year in completing expansion projects, keeping others on schedule and clearing hurdles toward resolving significant legal, business and regulatory issues.
 "It is a reality that our natural gas pipelines must deal with the effects of a winter that, so far, has been exceedingly mild," Williams said. "And even though much was accomplished last year, we have greater goals.
 "To reach them we've carved out a very aggressive agenda for 1992, both in energy and telecommunications, to build upon the expanding framework of our core businesses and the momentum that was created in 1991."
 THE WILLIAMS COMPANIES INC.
 FINANCIAL HIGHLIGHTS (Unaudited)
 (Dollars in millions, except per-share amounts)
 Three months ended Years ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 Revenues: $619.1 $542.0 $2,104.7 $1,822.1
 Net income 47.5 52.2 110.0 77.0
 Earnings per common
 and common-equivalent
 share 1.06 1.19 2.35 1.58
 Average shares
 (thousands) 41,890 41,364
 CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 (Millions, except per-share amounts)
 Three months ended Years ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 Revenues:
 Williams Western Group $118.4 $119.9 $419.5 $ 395.3
 Williams Natural
 Gas Company 144.6 117.9 417.9 382.1
 Williams Energy Company 167.4 175.5 538.9 566.2
 Williams Pipe Line Company 32.9 40.6 143.2 140.4
 Williams Telecommunications
 Group, Inc. (WilTel) 165.8 102.4 623.1 376.2
 Intercompany
 eliminations (10.0) (14.3) (37.9) (38.1)
 Total revenues 619.1 542.0 2,104.7 1,822.1
 Profit-center costs
 and expenses:
 Costs and operating
 expenses 451.0 393.4 1,542.8 1,365.9
 Selling, general and
 administrative expenses 66.3 41.1 261.8 180.1
 Other (income)
 expense--net (2.5) (2.6) (6.2) 39.4
 Total profit-center
 costs and expenses 514.8 431.9 1,798.4 1,585.4
 Operating profit (loss):
 Williams Western Group 39.1 35.1 116.2 105.8
 Williams Natural Gas
 Company 28.5 20.1 60.4 (10.6)
 Williams Energy Company 6.6 9.8 16.3 20.1
 Williams Pipe Line Company 9.9 11.9 31.1 30.4
 Williams Telecommunications
 Group, Inc. (WilTel) 20.2 33.2 82.3 91.0
 Total operating profit 104.3 110.1 306.3 236.7
 General corporate
 expenses (10.1) (5.1) (29.4) (22.0)
 Interest accrued (42.2) (35.1) (162.5) (142.0)
 Interest capitalized 1.4 1.5 4.7 4.9
 Investing income 4.4 10.5 35.6 39.2
 Other income (expense)--net 5.5 (4.5) (4.2) (14.7)
 Income before income taxes 63.3 77.4 150.5 102.1
 Provision for income taxes 15.8 25.2 40.5 25.1
 Net income 47.5 52.2 110.0 77.0
 Preferred stock dividends 2.9 2.9 11.6 11.6
 Income applicable
 to common stock $44.6 $49.3 $ 98.4 $ 65.4
 Earnings per common
 and common-equivalent
 share $1.06 $1.19 $2.35 $1.58
 OPERATING STATISTICS
 Three months ended Years ended
 Dec. 31 Dec. 31
 1991 1990 1991 1990
 Williams Western Group
 Natural gas sales (TBtu) 8.8 14.9 32.0 42.4
 Transportation volumes (TBtu) 162.0 147.4 568.4 512.6
 Gathering volumes (TBtu) 92.1 69.7 303.2 238.2
 Processing volumes (TBtu) 79.6 55.6 254.5 179.3
 Williams Natural Gas Company
 Natural gas sales (TBtu) 31.5 26.5 86.3 84.0
 Transportation volumes (TBtu) 80.3 70.2 309.7 235.0
 Gathering volumes (TBtu) 41.8 29.7 165.1 84.0
 Williams Energy Company
 Natural gas sales (TBtu):
 On-system 46.1 40.9 169.5 157.7
 Off-system 38.2 38.8 157.0 139.8
 Transportation volumes (TBtu) 18.9 17.4 81.1 71.5
 Williams Pipe Line Company
 Shipments (million barrels) 42.4 46.4 158.7 170.4
 Barrel miles (billions) 13.0 13.8 49.9 51.3
 Williams Telecommunications
 Group, Inc. (WilTel)
 Billable circuits at December 31:
 DS-0 10,291 8,207
 DS-l 4,047 3,738
 DS-3 702 586
 Total 15,040 12,531
 -0- 2/10/92
 /CONTACT: Jim Gipson of The Williams Companies, 918-588-2111/
 (WMB) CO: The Williams Companies ST: Oklahoma IN: OIL SU: ERN


RM -- SF007 -- 3585 02/10/92 12:05 EST
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