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ZAPATA 1991 RECORDS NET INCOME FOR FIRST TIME IN SEVEN YEARS

 ZAPATA 1991 RECORDS NET INCOME FOR FIRST TIME IN SEVEN YEARS
 HOUSTON, Nov. 25 /PRNewswire/ -- Zapata Corporation (NYSE: ZOS) today reported net income of $2.1 million for the fiscal year that ended September 30, the first time the company has recorded annual net income since fiscal 1984.
 Net income of $2.1 million represents a significant improvement over a net loss of $105.2 million for fiscal 1990. The 1990 results included a $38.6 million loss from the company's discontinued drilling operations and a $32.2 million loss from the sale of the drilling rig fleet. Operating income for fiscal 1991 was $3.1 million, versus an operating loss of $8.1 million a year earlier. Revenues for 1991 were $93.4 million, compared with $91.8 million in 1990.
 Zapata Chairman and Chief Executive Officer R. C. Lassiter said the improvement reflects, in part, the company's decision to exit the offshore drilling business through the sale of its drilling rig fleet, a transaction that was finalized on Oct. 31, 1990. The prior results from the operation of the rig fleet are reflected in Zapata's financial statements as discontinued operations.
 "We are now concentrating on improving the performance of our remaining marine protein and oil and gas businesses, and we are using them as a core for further business development activities," Lassiter said.
 Thanks to a fish catch that was 15 percent above that of 1990, the marine protein division reported operating income of $3.5 million on revenues of $70.9 million, compared with an operating loss of $11.0 million on revenues of $60.4 million the year before. Fish meal prices averaged $353 a ton during fiscal 1991, down slightly from 1990's average of $360 a ton. Fish oil prices, however, increased to $259 a ton, versus $205 a ton in fiscal 1990.
 Extremely low spot market prices for natural gas, partially the result of a lingering oversupply of gas from the mild winter of 1990-91, led Zapata to voluntarily curtail production to a level approximately 40 percent below that of 1990. Consequently, the company's oil and gas division posted operating income of $5.0 million on revenues of $22.5 million, compared with operating income of $10.8 million on revenues of $31.4 million for fiscal 1990.
 During the fourth quarter of fiscal 1991, Zapata received $2.3 million from its Bolivian natural gas operations, the first unrestricted payments made in connection with an agreement reached with the Bolivian state-owned petroleum company in fiscal 1988. Prior payments were made by the Bolivian government into an escrow account, with the funds either reinvested in Bolivia or used to pay local operating expenses.
 On June 19, 1991, Zapata entered into an agreement to merge its marine service operations, conducted through the joint venture Zapata Gulf Marine Corporation, with Tidewater Inc. As a result of the transaction, which is expected to be completed in the near future, Zapata will own nearly 8.26 million shares of Tidewater stock.
 Zapata Gulf had 1991 net income of $24.4 million, versus $4.1 million a year earlier. Operating income totaled $36.0 million for 1991, compared with $21.1 million the year before. Revenues in 1991 were $270.8 million, versus $231.8 million in 1990.
 For the fourth quarter of fiscal 1991, Zapata had net income of $2.9 million, compared with a net loss of $63.0 million a year earlier. The company had an operating loss of $0.5 million, versus an operating loss of $3.8 million for the fourth quarter of 1990. Revenues for the quarter were $31.0 million, compared with $28.8 million the year before.
 Zapata Corporation is a Houston-based international company that produces oil and natural gas, conducts marine protein operations that produce fish meal and edible oil from menhaden, and manages a fleet of offshore drilling rigs. Zapata is also the largest shareholder in Zapata Gulf Marine Corporation, the nation's leading operator of marine service vessels.
 ZAPATA CORPORATION
 Income Statement
 (In millions, except per share)
 Year ended Sept. 30: 1991 1990
 Revenues $93.4 $91.8
 Expenses:
 Operating 67.8 65.9
 Depreciation 13.6 21.6
 Administrative 8.9 12.4
 Total expenses 90.3 99.9
 Operating income (loss) 3.1 (8.1)
 Interest expense, net (12.3) (24.2)
 Other income (expense):
 Equity in income of
 unconsolidated affiliate 8.5 0.3
 Provision for write-down of other assets -- (4.6)
 Other 1.2 (2.1)
 Total 9.7 (6.4)
 Income (loss) from continuing
 operations before income taxes 0.5 (38.7)
 Provisions for income taxes (1.6) (4.3)
 Income (loss) from continuing opers. 2.1 (34.4)
 Loss from discontinued operations,
 net of income tax -- (38.6)
 Loss on disposal of drilling assets,
 net of income tax -- (32.2)
 Net income (loss) 2.1 (105.2)
 Preferred stock dividends 0.4 0.4
 Net income (loss) to common stock $1.7 ($105.6)
 Income (loss) per share:
 Income (loss) from continuing opers. $0.01 ($1.09)
 Loss from discontinued operations -- (1.21)
 Loss on disposal of drilling assets -- (1.01)
 Net income (loss) per share $0.01 ($3.31)
 Average common shares outstanding 126.7 32.0
 Fourth Fiscal Quarter: 1991 1990
 Revenues $31.0 $28.8
 Expenses:
 Operating 25.9 24.2
 Depreciation 3.0 5.6
 Administrative 2.6 2.8
 Total expenses 31.5 32.6
 Operating income (loss) (0.5) (3.8)
 Interest expense, net (3.0) (8.8)
 Other income (expense):
 Equity in income of
 unconsolidated affiliate 5.2 0.2
 Prov. for write-down of other assets -- (4.6)
 Other -- (0.3)
 Total 5.2 (4.7)
 Income (loss) from continuing
 operations before income taxes 1.7 (17.3)
 Provision for income taxes (1.2) (0.8)
 Income (loss) from continuing opers. 2.9 (16.5)
 Loss from discontinued operations,
 net of income tax -- (14.3)
 Loss on disposal of drilling assets,
 net of income tax -- (32.2)
 Net income (loss) 2.9 (63.0)
 Preferred stock dividends 0.1 0.1
 Net income (loss) to common stock $ 2.8 ($63.1)
 Income (loss) per share:
 Income (loss) from continuing opers. $0.02 ($0.53)
 Loss from discontinued operations -- (0.44)
 Loss on disposal of drilling assets -- (1.01)
 Net income (loss) per share $0.02 ($1.98)
 Average common shares outstanding 126.8 32.0
 Divisional Revenues and Operating Income
 (In millions)
 Year ended Sept. 30: 1991 1990
 Revenues
 Oil and gas $22.5 $31.4
 Marine protein 70.9 60.4
 Total $93.4 $91.8
 Operating income (loss)
 Oil and gas $5.0 $10.8
 Marine protein 3.5 (11.0)
 Corporate (5.4) (7.9)
 Total $3.1 ($8.1)
 Fourth Fiscal Quarter: 1991 1990
 Revenues
 Oil and gas $6.1 $7.2
 Marine protein 24.9 21.6
 Total $31.0 $28.8
 Operating income (loss)
 Oil and gas $0.2 $1.4
 Marine protein 0.9 (3.4)
 Corporate (1.6) (1.8)
 Total ($0.5) ($3.8)
 -0- 11/25/91
 /CONTACT: Zapata corporate affairs, 713-226-6240/
 (ZOS) CO: Zapata Corporation ST: Texas IN: OIL SU: ERN


TS -- NY032 -- 6784 11/25/91 11:09 EST
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Date:Nov 25, 1991
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