Unocal’s Profit Doubles on Prices
Fueled by higher oil and natural-gas prices, Unocal Corp.’s profit doubled in the first quarter, the company said Wednesday.
The El Segundo-based firm posted net income of $269 million, or $1 a share, in the quarter ended March 31, up from $134 million, or 52 cents, a year earlier. That surpassed Wall Street analysts’ expectations of 80 cents a share, according to an average estimate of analysts polled by Thomson First Call.
Revenue rose 6% to $1.89 billion.
“We had an outstanding first quarter,” said Unocal Chairman Charles R. Williamson.
Unocal, which drills for oil and gas around the world, said it benefited from higher natural-gas prices, as well as lower capital expenditures.
The company received an average price of $4 per thousand cubic feet of natural gas during the quarter, up from $3.90 a year earlier. Crude oil sold for an average of $30.64 per barrel, up from $29.99 a year earlier.
Yet, Unocal produced less oil and gas. Worldwide production averaged 409,000 barrels per day, down from 471,000 a year ago. Unocal said the drop was largely because of the sale of North American production assets.
The company also trimmed its 2004 production forecast to an average of about 425,000 barrels a day from 450,000 barrels.
Second-quarter production is estimated to be 410,000 to 420,000 barrels.
Unocal shares fell $1.52 to $37.75 on the New York Stock Exchange.
“The bottom line is, as North American natural gas production continued to trend down, operational costs were lower, which is good,” said Aliza C. Fan, an analyst in Houston for John S. Herold Inc. who owns some Unocal shares.
