2 Oil Companies Score First-Quarter Gains
Two major oil companies on Monday reported stronger first-quarter results because of higher oil and natural gas prices and efforts to cut expenses.
Los Angeles-based Atlantic Richfield Co. reported quarterly earnings of $260 million, or $1.60 a share. The earnings contrasted with a net loss a year ago of $212 million, or $1.31 a share, brought by changes in accounting for income taxes and employee retirement benefits.
For the record:
12:00 a.m. April 29, 1993 For the Record
Los Angeles Times Thursday April 29, 1993 Home Edition Business Part D Page 2 Column 6 Financial Desk 2 inches; 54 words Type of Material: Correction
Unocal--Unocal recorded a one-time charge--to cover accounting changes for retiree benefits--of $130 million in the first quarter of 1993, not in the last quarter of 1992 as was incorrectly reported in Tuesday’s editions. Also, Unocal’s first-quarter 1992 results, not its first-quarter 1993 results, included a $24-million benefit from a change in accounting for income taxes.
Before the accounting change, Arco reported earnings of $180 million, or $1.12 per share, for the first quarter of 1992.
Higher oil and gas prices pushed the earnings for exploration and production operations to $177 million, up from $108 million in the 1992 period.
First-quarter sales were $4.51 billion, up from $4.44 billion in the first quarter of 1992.
The company’s stock closed down 37.5 cents at $121.375 Monday on the New York Stock Exchange.
Unocal Corp. reported 72.5% lower first-quarter profit as a result of new accounting rules, but said operating earnings surged.
The Los Angeles-based oil company earned $11 million, or 1 cent a share, during the January-March period, compared to $40 million, or 17 cents a share, a year earlier. Before charges for the accounting changes, Unocal earned $141 million for the quarter.
First-quarter revenue fell from $2.42 billion to $2.32 billion, reflecting the sale of several businesses during 1992 as part of Unocal’s debt-reduction strategy.
Unocal recorded a one-time charge of $130 million in the last quarter of 1992 to cover accounting changes for retiree benefits. Its first-quarter 1993 results included a $24-million benefit from the change in accounting for income taxes.
Chairman Richard J. Stegemeier said the results reflect higher domestic crude oil and natural gas prices, lower exploration expenses and improved earnings on the West Coast for refined products.
Operating earnings for the first quarter of 1993, excluding accounting changes, asset sales and other special items, were $98 million, or 37 cents per common share, versus $23 million, or 10 cents a share, last year.
Unocal closed off 37.5 cents at $29.75 on the NYSE.
