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Oil companies post results
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July 22, 1999: 5:53 p.m. ET
Ashland, Coastal, Sunoco and USX-Marathon release financials
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NEW YORK (CNNfn) - Four major oil companies reported earnings Thursday.
Ashland Inc. (ASH ,) the Covington, Ky.-based company reported net income of $85 million or $1.15 per share, excluding charges, missing First Call Corp.'s estimate of $1.21. Ashland reported net income of $122 million or $1.58 per share in the year-ago period.
Sales and operating revenues were $1.8 billion, compared with $1.7 billion for the third quarter a year ago.
Ashland's chairman and chief executive officer Paul W. Chellgren said in a statement that "reported prices were down primarily because of weakness in refining margins and coal prices, which effected our equity investments."
Ashland closed down 5/16 at 40-3/16
The Coastal Corp. (CGP) reported record second-quarter earnings of $93.3 million or 43 cents per share, edging out First Call's estimate of 44 cents by a penny.
The Houston-based company reported earnings of $94.6 million or 43 cents per share in the year ago period. The 1998 second quarter included net earnings of $3.1 million relating to discontinued operations.
Operating revenues were $1.89 billion compared to $1.92 billion in the year ago period.
Coastal closed down ¼ to 39-9/16.
Sunoco Inc. (SUN) reported second-quarter net income of $26 million or 28 cents per diluted share, beating out First Call's estimate of 14 cents per share.
The Philadelphia-based company posted net income of $92 million or 97 cents per diluted share.
Sunoco's second quarter 1999 results include a $16 million after-tax gain associated with the settlement of certain insurance claims. Revenues totaled $2.4 billion compared to $2.1 billion in the year ago period.
"The industry's high level of refined product inventories and the rapid run-up in crude oil prices during the quarter combined to squeeze margins for almost all of our products," said Robert H. Campbell, Sunoco chairman and chief executive officer. "However, the impact of these exceptionally low product margins was moderated by our value-added businesses."
Campbell noted that U.S. refining margins were near record seasonal lows for much of the quarter except on the U.S. West Coast.
While the company's goal for the year was to generate $116 million of additional after-tax income from "self-help" initiatives, Campbell said "it is unlikely that we will meet our 1999 self-help target because of the low-margin environment and the impact of both voluntary refinery run reductions and some unscheduled operating downtime."
Sunoco closed down 5/16 to 32-7/8.
And USX-Marathon Group (MRO) reported net income adjusted for special items of $119 million or 39 cents per diluted share, beating out First Call's estimate of 37 cents.
The Pittsburgh-based company reported net income adjusted for special items of $162 million or 56 cents per diluted share in the second quarter of 1998.
USX Chairman Thomas J. Usher said, "Second quarter results improved significantly over the first quarter adjusted loss of 4 cents per share reflecting a strong rebound in liquid hydrocarbon prices.
Marathon recorded second quarter 1999 net income of $134 million, or 43 cents per diluted share. The 1999 results included a favorable adjustment in the inventory market valuation reserve, partially offset by an estimated loss from the anticipated sale of Carnegie Natural Gas Co. and affiliated subsidiaries.
The net favorable effect on net income of these special items was $15 million. Net income in second quarter 1998 was $162 million, or 56 cents per diluted share. There were no material special items in second quarter 1998.
USX Chairman Thomas J. Usher said, "Second- quarter results improved significantly over the first quarter adjusted loss of 4 cents per share reflecting a strong rebound in liquid hydrocarbon prices. Although refined product margins strengthened from the first quarter of 1999, they remained well below the strong 1998 second quarter."
Marathon Group revenues were $5.5 billion in the second quarter of both years.
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Ashland
Coastal
Sunoco
USX - Marathon Group
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