ATC Atlantic Coal

RNS No 6893b
ATLANTIC RICHFIELD COMPANY 
27 October 1997

 
      ARCO REPORTS 3RD QUARTER EARNINGS; PRODUCTION GROWTH CONTINUES
 
Los Angeles, October 27 - ARCO (NYSE: ARC) today reported 1997 third quarter
net income of US$516 million, or $1.57 per share, compared to 1996 third
quarter net income of $479 million, or $1.47 per share. Excluding special
items, the 1997 third quarter income was $431 million, or $1.31 per share.
 
OIL AND NATURAL GAS GROWTH 'ON TRACK'; WEST COAST GASOLINE MARKET STRENGTHENS
 
ARCO Chairman and Chief Executive Officer Mike R. Bowlin said the 1997 third
quarter results showed continued growth in ARCO's oil and natural gas volumes.
''We are on track with our 1997 and five-year growth goals. We achieved 2%
volume growth in the third quarter versus last year,'' Bowlin said. ''Oil
equivalent production for the three quarters of 1997 was up 3% compared to
last year, and we are looking forward to an even better year-over-year
production comparison in the fourth quarter.
 
''Our refining and marketing business had exceptionally good results in the
third quarter. We returned to the strong performance levels we were realizing
in last year's second and third quarters. Increased demand for gasoline during
the peak summer driving season and lean inventories contributed to stronger
gasoline margins,'' Bowlin added.
 
FUTURE GROWTH ENHANCED
 
''The outlook for growth in ARCO's international oil and gas business was
furthered during the third quarter as we announced proved and probable gross
reserves of more than 13 trillion cubic feet of natural gas (approximately 2
billion barrels of oil equivalent) in Irian Jaya in eastern Indonesia. This is
sufficient natural gas for a major liquefied natural gas project. ARCO will
have an estimated 30-35% share of the reserves. Providing impetus to this
project, Indonesian President Suharto named the field Tangguh, signifying
strength and resiliency,'' Bowlin said.
 
''In addition, we completed the purchase of a 50% interest in the producing
Ashtart oil field and related exploration properties offshore Tunisia. The
Ashtart field is a candidate for ARCO's industry-leading enhanced oil recovery
technology,'' Bowlin said.
 
In neighboring Algeria, ARCO and its partners announced a successful
exploration well in the Hassi Bir Rekaiz block, one of two blocks ARCO is
exploring in Algeria. A second well will be drilled on the structure in 1998.
 
EXPLORATION AND PRODUCTI0N GROWTH
 
In the 1997 third quarter, ARCO's worldwide exploration and production
operations earned $288 million after tax, down from $302 million after tax in
the same quarter of 1996. The decline was caused by lower crude oil prices.
International natural gas production grew 19% reflecting increased sales from
ARCO's Yacheng natural gas field offshore China. International oil volumes
included new production from interests in the Ashtart, Tengiz and Al Rayyan
fields along with increased contributions from the Rhourde El Baguel field. A
new North Sea oil field, Bladon, came on stream in early September.
 
REFINING AND MARKETING MARGINS REBOUND
 
Reflecting increased West Coast gasoline prices, ARCO's refining and marketing
business had after-tax earnings of $134 million in the 1997 third quarter.
This was in line with near-record quarterly earnings of $138 million in the
same period of 1996 and a dramatic improvement from the 1997 second quarter.
The integration of the newly leased Thrifty stations in California contributed
to a 1O% improvement in gasoline sales volumes during the 1997 third quarter,
compared to last year's third quarter.
 
CHEMICALS
 
ARCO's 82.4% interest in ARCO Chemical Company generated an after-tax loss of
$23 million including a $95 million after-tax charge for costs related to a
restructuring program. Excluding the special items charges, ARCO's interest in
ARCO Chemical totaled $72 million in the 1997 third quarter, down from $87
million in the 1996 third quarter but up from $38 million in 1997's second
quarter. Stronger volumes and higher margins in ARCO Chemical's urethanes
business along with lower turnaround costs contributed to the improvement from
the second to third quarters of 1997. In addition, MTBE margins in Europe and
the U.S. rose due to higher gasoline prices and strong demand during the
summer driving season.
 
ARCO earned $43 million from the 49.9% equity interest in Lyondell
Petrochemical Company that it held until September 15. Following the
settlement of ARCO's 9% Exchangeable Notes with Lyondell stock, ARCO no longer
holds an interest in Lyondell.
 
1997 THIRD QUARTER SPECIAL ITEMS
 
The 1997 third quarter net income included a special benefit of approximately
$85 million after tax. Benefits included a previously announced after-tax gain
of approximately $290 million from the settlement of 9% Notes with Lyondell
Petrochemical Company stock, in addition to tax-related adjustments. The
benefits were partially offset by after-tax charges for the restructuring
actions at ARCO Chemical Company of $95 million, net of minority interest, and
charges of approximately $140 million after tax for future environmental
remediation and reclamation related to both current operations and to natural
resource damage liabilities in the state of Montana associated with previously
discontinued mining operations.
 
Some of the matters discussed in this news release are forward-looking
statements that involve risks and uncertainties. Actual results could differ
materially based on numerous factors, including the realized level of crude
oil and natural gas production and other risks detailed from time to time in
the company's SEC reports, including the 1996 report on Form 1O-K, filed on
February 26, 1997.
 
For a menu of ARCO news releases and prior quarterly/annual financial
information, visit ARCO at http://www.arco.com on the Internet.
 
                          ATLANTIC RICHFIELD COMPANY
                       CONSOLIDATED STATEMENT OF INCOME
                                 (Unaudited)
 
    (Millions except per share amounts)
 
                             Three Months Ended          Nine Months Ended
                                September 30               September 30
                             1997          1996          1997         1996
 
    REVENUES
    Sales and other
     operating revenues     $4,553        $4,748      $14,184       $13,463
    Other revenues             149           130          511           470
    Total revenues           4,702         4,878       14,695        13,933
 
    EXPENSES
    Trade purchases          1,914         2,009        6,136         5,549
    Operating expenses       1,221           999        3,318         2,891
    Selling, general
     and administrative
     expenses                  279           232          801           728
    Depreciation, depletion
     and amortization          433           399        1,277         1,202
    Exploration expenses
     (including undeveloped
     leasehold amortiziation)  113           101          329           308
    Taxes other than
     income taxes              177           187          585           598
    Interest (a)               133           160          307           500
    Unusual items (b)          175           ---          175            26
    Total expenses           4,445         4,087       12,928        11,802
    Income before gain
     on subsidiary stock
     transaction               257           791        1,767         2,131
 
    Gain on sale of Lyondell
     Petrochemical Company
     stock                     633           ---          633           ---
    Income before income taxes,
     minority interest &
     extraordinary item        890           791        2,400         2,131
 
    Provision for taxes
     on income                 370           287          849           768
 
    Minority interest in
     earnings of subsidiaries    4            25           44            80
    Net income before
     extraordinary item        516           479        1,507         1,283
    Extraordinary Item - loss
     on extinguishment of debt
     (net of Income
      taxes of $74 million)    ---           ---         (118)          ---
    Net income                $516          $479       $1,389        $1,283
 
    Earned per share (d):
    Income before
     extraordinary Item      $1.57         $1.47        $4.59         $3.93
 
    Extraordinary loss         ---           ---        (0.36)          ---
    Net income               $1.57         $1.47        $4.23         $3.93
    Weighted average
     equivalent shares
     outstanding (d)        328.1(c)      326.6(c)      328.1(c)    326.6(c)
    Dividends per
     common share (d)      $0.7125       $0.6875      $2.1125       $2.0625
 
 
 
   (a) Excludes capitalized interest of $13 million and $9 million for the
three-month periods and $31 million an $21 million for the nine-month periods
ended September 30, 1997 and 1996, respectively.
 
   (b) ARCO Chemical restructuring charges in 1997.
 
   (c) The common shares, including equivalents, outstanding at September 30,
1997 and 1996 were 328,255,599 shares and 326,530,424 shares, respectively.
 
   (d) Prior year share and per share date is restated for the effect of the
second quarter 1997 100% stock dividend.
 
 
                          AFTER-TAX SEGMENT EARNINGS
                                 (Unaudited)
 
    (Millions)                Three Months Ended          Nine Months Ended
                                September 30,               September 30,
                              1997          1996         1997          1996
 
    Exploration and production$288          $302       $1,061          $904
    Refining and marketing     134           138          244           295
    Chemicals                  (23)           87           65           259
    Coal                         6            22           53            49
    Equity in
     earnings from Lyondell     43            18          119            37
    Unallocated expenses
     and other                (131)           20         (106)           77
    Interest                   (92)         (108)        (220)         (338)
    Gain on sale of LPC stock  291           ---          291           ---
    Extraordinary item - loss
     on extinguishment of debt ---           ---         (118)          ---
    Net income                $516          $479       $1,389        $1,283
 
 
 
NOTE TO EDITORS: ARCO Chemical Company (NYSE: RCM) reported earnings on
October 20; Vastar Resources, Inc. (NYSE: VRI) announced earnings on October
15; Lyondell Petrochemical Company (NYSE: LYO) reported earnings today.
 
Contact: Media: Albert Greenstein, tel 001 213-486-3384; Investors: Dennis
Schiffel, tel 001 213-486-1511 both of ARCO, Web site: http://www.arco.com
 

END

QRTBRBBGSBDCCRR

Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jun 2024 to Jul 2024

Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jul 2023 to Jul 2024