Higher Oil, Gas Prices Boost Unocal Profit

Unocal Corp. on Wednesday, said fourth-quarter profit almost tripled on higher oil and gas prices.

Profit from operations rose to $77 million, or 32 cents a share, from $28 million, or 11 cents, in the year-earlier period. Sales rose 38% to $1.93 billion from $1.4 billion.

Oil prices, buoyed by producing nations’ output cuts, surged in the quarter. Prices on the New York Mercantile Exchange almost doubled, averaging $24.51 a barrel. Natural gas prices averaged $2.62 a thousand cubic feet, up 22%.

Profit was in line with the 31-cent average estimate of analysts surveyed by First Call/Thomson Financial. Estimates ranged from 26 cents to 37 cents.

Unocal shares fell 56 cents to close at $28.88 on the New York Stock Exchange.

El Segundo-based Unocal, which explores for oil and natural gas and develops power plants and pipeline projects, had a $21-million gain from the sale of refineries and gasoline stations to Tosco Corp. in 1997, and other gains of $17 million. It took charges totaling $18 million for writing down properties and to cover litigation costs, bringing net income to $97 million, or 40 cents.

In the year-earlier period, Unocal took charges of $65 million for write-downs, $30 million for environmental and legal costs, $17 million related to job cuts and $8 million in tax adjustments. It had gains of $45 million from an insurance settlement and $18 million from asset sales, giving it a loss of $29 million, or 12 cents.