ST. LOUIS, Feb. 12 /PRNewswire/ -- Premcor Inc. today reported a net loss
of $44.5 million for the fourth quarter ended December 31, 2001. Excluding
the effect of the special items discussed below, the net loss was
$22.8 million, compared to net income of $18.3 million for the fourth quarter
of 2000. Reported net income for the full year of 2001 reached a record
$142.6 million. Excluding special items, net income rose to $249.8 million, a
three-fold increase over full year 2000 net income of $80.1 million.
Thomas D. O'Malley, who was appointed Premcor's chairman, chief executive
officer and president on February 1, 2002, commented, "Premcor's record 2001
results clearly demonstrate the benefits of the Port Arthur heavy oil upgrade
project and our presence in the historically strong Midwest refining region.
These factors enabled us to achieve a year over year improvement in our
realized refining margin that was over three times the improvement in the
benchmark industry margins for our refining regions.
"Fourth quarter refining margins declined sharply from third quarter and
prior year levels due to the weak economy and unseasonably warm weather,"
continued O'Malley. "Although industry margin benchmarks dropped 34 percent
in our regions as compared to last year's fourth quarter, our realized
refining margins declined only 22 percent. Excluding a $19.3 million charge
related to the liquidation of high cost LIFO inventory, which was equivalent
to $.47 per barrel, the decline would have been only 10 percent.
"Our leverage to heavy sour crude oil partially mitigated the impact of
the fourth quarter's market conditions, but product differentials to
benchmarks eroded due to the dramatic decline in the demand for transportation
fuels. This was most noticeable in our Midwest operations. Our refineries
operated well during the fourth quarter but our overall fourth quarter results
were below breakeven. This was a disappointing conclusion to a year of
transformation," O'Malley said.
PREMCOR USA INC.
Premcor USA Inc. (Premcor USA), a wholly-owned subsidiary of Premcor Inc.
and the parent of The Premcor Refining Group Inc. (PRG), reported a fourth
quarter 2001 net loss of $49.0 million. Excluding special items, the net loss
was $27.3 million, compared to net income of $8.8 million for the fourth
quarter of 2000. Reported net income for the full year of 2001 was
$26.0 million. Excluding special items, net income was $133.1 million,
compared to $76.1 million for the full year of 2000.
SABINE RIVER HOLDING CORP.
Sabine River Holding Corp. (Sabine), a 90% owned subsidiary of Premcor
Inc. and the general partner of the Port Arthur Coker Company L.P. (PACC),
reported net income of $4.6 million for the fourth quarter 2001, compared to
$12.4 million for the same quarter last year. The company reported net income
of $128.1 million for the full year 2001, compared to $6.3 million for the
same period a year ago. The prior year results for both the quarter and the
full year included approximately one month of operations and only pre-
operating and general and administrative expenses for the balance of the
periods.
SPECIAL ITEMS
For the fourth quarter 2001, Premcor Inc. and Premcor USA special items
included restructuring and other charges totaling $15.5 million, representing
an adjustment to reserves established in connection with previously
discontinued retail operations, and the $19.3 million LIFO charge discussed
above. The after-tax effect of these special items on the fourth quarter was
a net loss of $21.7 million.
For the full year 2001, special items included a $5.6 million
extraordinary gain associated with the repurchase of long-term debt and
exchangeable preferred stock, a $30 million income tax benefit from prior
years, the $19.3 million LIFO charge, and restructuring and other charges
totaling $205.7 million. Pre-tax restructuring and other charges included
$167.2 million related to the Blue Island refinery closure, $9.0 million for
decommissioning two cokers that were idled in conjunction with the Port Arthur
heavy oil upgrade project and $29.5 million related to previously discontinued
retail operations. The after-tax effect of all special items for 2001 was a
net loss of $107.2 million.
CASH BALANCES
At December 31, 2001, Premcor Inc. had $511.8 million of consolidated cash
and short-term investments. Included in the consolidated cash balance was
$286.9 million at Premcor USA, of which $25.5 million was available at the
Premcor USA parent level and $261.4 million was available at the PRG level.
Sabine had $222.8 million in cash in support of PACC operations and
obligations. In addition to these balances, Premcor Inc., through Sabine had
$30.8 million in cash reserved for mandatory debt service. Total capital and
turnaround expenditures at Premcor Inc. for the fourth quarter of 2001 were
$44.6 million.
A conference call concerning fourth quarter and full year 2001 results
will be webcast live today at 10:00 a.m. CST on the Investor Relations section
of the Premcor Inc. web site at http://www.premcor.com .
Premcor Inc., through its principal operating subsidiaries, The Premcor
Refining Group Inc. and the Port Arthur Coker Company L.P., is one of the
largest independent petroleum refiners and marketers of unbranded
transportation fuels, heating oil, petrochemical feedstocks, petroleum coke
and other petroleum products in the United States. The company has an
aggregate 490,000 barrels per day (bpd) of crude distillation capacity at its
three refineries located in Port Arthur, Texas (250,000 bpd), Lima, Ohio
(170,000 bpd) and Hartford, Illinois (70,000 bpd).
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including the
company's current expectations with respect to future market conditions,
future operating results and the future performance of its refinery
operations. Words such as "expects," "intends," "plans," "projects,"
"believes," "estimates," "may," "will," "should," "shall," and similar
expressions typically identify such forward-looking statements. Even though
Premcor believes the expectations reflected in such forward-looking statements
are based on reasonable assumptions, it can give no assurance that its
expectations will be attained. Factors that could cause actual results to
differ materially from expectations include, but are not limited to,
operational difficulties, varying market conditions, potential changes in
gasoline, crude oil, distillate and other commodity prices, government
regulations, and other factors contained from time to time in the reports
filed with the Securities and Exchange Commission by the company and its
subsidiaries, including Sabine River Holding Corp., Premcor USA Inc. and The
Premcor Refining Group Inc., including quarterly reports on Form 10-Q, reports
on Form 8-K, and annual reports on Form 10-K.
Premcor Inc. and Subsidiaries
Earnings Release
Three months ended Year ended
December 31, December 31,
(dollars in millions, unaudited) 2001 2000 2001 2000
Operating revenues $1,246.6 $1,989.3 $6,417.5 $7,301.7
Cost of sales 1,117.7 1,801.0 5,251.4 6,562.5
Gross margin (a) 128.9 188.3 1,166.1 739.2
Operating expenses 111.9 135.8 467.7 467.7
General and administrative
expenses 18.0 17.4 63.3 53.0
Adjusted EBITDA (b) (1.0) 35.1 635.1 218.5
Restructuring and other charges 15.5 - 205.7 -
EBITDA (b) (16.5) 35.1 429.4 218.5
Depreciation and amortization 24.2 19.5 91.9 71.8
Operating income (loss) (40.7) 15.6 337.5 146.7
Interest expense and finance
income, net (33.2) (20.0) (139.5) (82.2)
Income tax (provision) benefit 32.3 26.4 (37.8) 25.8
Minority interest (0.4) (1.2) (12.8) (0.6)
Net income (loss) before
extraordinary item and
dividends (42.0) 20.8 147.4 89.7
Gain on repurchase of long-term
debt, net of tax - - 5.6 -
Preferred stock dividends (2.5) (2.5) (10.4) (9.6)
Net income (loss) available to
common stockholders $(44.5) $18.3 $142.6 $80.1
(a) 2001 results include a $19.3
million loss from liquidation
of high cost LIFO inventory.
(b) EBITDA represents earnings
before interest, income taxes,
depreciation and amortization.
Adjusted EBITDA excludes
restructuring and other charges
Selected Volumetric and Per Barrel
Data
Production (Mbbls per day) 473.4 506.0 463.4 477.3
Crude oil throughput (Mbbls per
day) 443.3 508.4 439.7 468.0
Per barrel of throughput:
Gross margin $3.16 $4.03 $7.27 $4.32
Operating expenses $2.74 $2.90 $2.91 $2.73
Market Indicators (dollars per
barrel)
West Texas Intermediate, or "WTI"
(sweet) $20.32 $31.94 $25.96 $30.37
Crack Spreads (3/2/1):
Gulf Coast $1.95 $3.73 $4.22 $4.17
Chicago $4.49 $5.59 $7.90 $5.84
Crude Oil Differentials:
WTI less WTS (sour) $1.91 $2.79 $2.81 $2.17
WTI less Maya (heavy sour) $6.33 $9.68 $8.76 $7.29
WTI less Dated Brent (foreign) $0.87 $2.42 $1.48 $1.92
Natural Gas (per mmbtu) $2.17 $5.25 $4.22 $3.94
December 31, December 31,
Financial Position 2001 2000
Cash and short-term investments $511.8 $291.8
Other working capital (29.2) 33.2
Total assets 2,509.8 2,469.1
Long-term debt and exchangeable
preferred stock 1,486.2 1,605.1
Stockholders' equity 294.7 152.1
Premcor Inc. and Subsidiaries
Earnings Release
Three months ended Three months ended
December 31, 2001 December 31, 2000
Selected Volumetric Percent Percent
Data (in thousands Port Midwest of Port Midwest of
of barrels per day) Arthur * Total Total Arthur * Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 133.7 133.7 29% - 174.6 174.6 35%
Light/medium
sour 46.9 56.1 103.0 22% 170.8 75.2 246.0 49%
Heavy sour 196.6 10.0 206.6 45% 75.4 12.4 87.8 18%
Total crude
oil 243.5 199.8 443.3 96% 246.2 262.2 508.4 102%
Unfinished and
blendstocks 12.4 7.4 19.8 4% (11.4) 3.6 (7.8) -2%
Total
feedstocks 255.9 207.2 463.1 100% 234.8 265.8 500.6 100%
Production:
Light products:
Conventional
gasoline 85.8 105.5 191.3 40% 80.3 119.5 199.8 39%
Premium and
reformulated
gasoline 23.7 15.0 38.7 8% 17.9 37.2 55.1 11%
Diesel fuel 85.5 45.5 131.0 28% 68.4 63.3 131.7 26%
Jet fuel 23.0 21.1 44.1 9% 18.1 22.9 41.0 8%
Petrochemical
products 16.2 10.1 26.3 6% 24.4 11.5 35.9 7%
Total light
products 234.2 197.2 431.4 91% 209.1 254.4 463.5 91%
Petroleum coke and
sulfur 25.9 5.6 31.5 7% 14.5 8.3 22.8 5%
Residual oil 5.8 4.7 10.5 2% 15.0 4.7 19.7 4%
Total
production 265.9 207.5 473.4 100% 238.6 267.4 506.0 100%
Year ended December 31, 2001
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
Feedstocks:
Crude oil throughput:
Sweet - 143.6 143.6 32%
Light/medium sour 48.3 59.4 107.7 24%
Heavy sour 181.5 6.9 188.4 42%
Total crude oil 229.8 209.9 439.7 98%
Unfinished and blendstocks 11.4 (0.8) 10.6 2%
Total feedstocks 241.2 209.1 450.3 100%
Production:
Light products:
Conventional gasoline 82.9 101.9 184.8 40%
Premium and reformulated
gasoline 24.4 20.5 44.9 10%
Diesel fuel 77.2 44.5 121.7 26%
Jet fuel 19.7 22.7 42.4 9%
Petrochemical products 18.3 10.2 28.5 6%
Total light products 222.5 199.8 422.3 91%
Petroleum coke and sulfur 26.5 6.6 33.1 7%
Residual oil 4.8 3.2 8.0 2%
Total production 253.8 209.6 463.4 100%
* Includes results of the company's
Blue Island refinery, which was closed
in January 2001 as follows:
Three months ended December 31,
2001 2000
Total feedstocks - 63.1
Total production - 63.1
Year ended December 31, 2000
Selected Volumetric Data Port Percent
(in thousands of barrels per day) Arthur Midwest* Total of Total
Feedstocks:
Crude oil throughput:
Sweet 3.6 197.9 201.5 43%
Light/medium sour 155.1 52.3 207.4 44%
Heavy sour 43.4 15.7 59.1 12%
Total crude oil 202.1 265.9 468.0 99%
Unfinished and blendstocks 5.0 (0.4) 4.6 1%
Total feedstocks 207.1 265.5 472.6 100%
Production:
Light products:
Conventional gasoline 73.4 119.6 193.0 40%
Premium and reformulated
gasoline 18.1 39.7 57.8 12%
Diesel fuel 58.0 59.8 117.8 25%
Jet fuel 16.6 21.4 38.0 8%
Petrochemical products 23.7 12.5 36.2 8%
Total light products 189.8 253.0 442.8 93%
Petroleum coke and sulfur 11.3 7.7 19.0 4%
Residual oil 9.5 6.0 15.5 3%
Total production 210.6 266.7 477.3 100%
* Includes results of the company's
Blue Island refinery, which was closed
in January 2001 as follows:
Year ended December 31,
2001 2000
Total feedstocks 4.3 68.2
Total production 4.3 68.0
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended Year ended
December 31, December 31,
(dollars in millions, unaudited) 2001 2000 2001 2000
Operating revenues $1,267.8 $1,999.4 $6,532.8 $7,311.8
Cost of sales 1,184.8 1,823.4 5,758.1 6,584.9
Gross margin (a) 83.0 176.0 774.7 726.9
Operating expenses 93.5 131.6 359.7 460.3
General and administrative
expenses 16.9 16.8 59.0 51.8
Adjusted EBITDA (b) (27.4) 27.6 356.0 214.8
Restructuring and other charges 15.5 - 205.7 -
EBITDA (b) (42.9) 27.6 150.3 214.8
Depreciation and amortization 18.9 19.5 71.4 71.8
Operating income (loss) (61.8) 8.1 78.9 143.0
Interest expense and finance
income, net:
Premcor USA Inc. (3.8) (4.3) (17.0) (17.9)
The Premcor Refining Group Inc. (14.9) (14.8) (62.2) (61.1)
Income tax benefit 34.0 22.3 31.1 21.7
Net income (loss) before
extraordinary item (46.5) 11.3 30.8 85.7
Gain on repurchase of long-term
debt, net of tax - - 5.6 -
Preferred stock dividends (2.5) (2.5) (10.4) (9.6)
Net income (loss) available to
common stockholder $(49.0) $8.8 $26.0 $76.1
(a) 2001 results include a $19.3
million loss from liquidation
of high cost LIFO inventory.
(b) EBITDA represents earnings
before interest, income taxes,
depreciation and amortization.
Adjusted EBITDA excludes
restructuring and other charges
Selected Volumetric and Per Barrel
Data
Production (Mbbls per day) 453.3 501.0 445.6 476.0
Crude oil throughput (Mbbls per
day) 239.6 472.8 253.7 459.1
PACC Intermediate throughput
(Mbbls per day) 196.9 35.0 180.0 8.8
Total throughput 436.5 507.8 433.7 467.9
Per barrel of throughput:
Gross margin $2.07 $3.77 $4.89 $4.24
Operating expenses $2.33 $2.82 $2.27 $2.69
Market Indicators (dollars per
barrel)
West Texas Intermediate, or "WTI"
(sweet) $20.32 $31.94 $25.96 $30.37
Crack Spreads (3/2/1):
Gulf Coast $1.95 $3.73 $4.22 $4.17
Chicago $4.49 $5.59 $7.90 $5.84
Crude Oil Differentials:
WTI less WTS (sour) $1.91 $2.79 $2.81 $2.17
WTI less Maya (heavy sour) $6.33 $9.68 $8.76 $7.29
WTI less Dated Brent (foreign) $0.87 $2.42 $1.48 $1.92
Natural Gas (per mmbtu) $2.17 $5.25 $4.22 $3.94
December 31, December 31,
Financial Position 2001 2000
Cash and short-term investments:
Premcor USA Inc. $25.5 $38.9
The Premcor Refining Group Inc. 261.4 216.5
Other working capital 90.3 66.4
Total assets 1,638.9 1,761.0
Long-term debt and exchangeable
preferred stock:
Premcor USA Inc. 239.2 265.6
The Premcor Refining Group Inc. 784.0 796.9
Stockholder's equity 69.0 43.0
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended Three months ended
December 31, 2001 December 31, 2000
Selected Volumetric Percent Percent
Data (in thousands Port Midwest of Port Midwest of
of barrels per day) Arthur * Total Total Arthur * Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 133.7 133.7 29% - 174.6 174.6 35%
Light/medium
sour 6.1 56.1 62.2 14% 156.2 75.2 231.4 46%
Heavy sour 33.7 10.0 43.7 10% 54.4 12.4 66.8 14%
Total crude
oil 39.8 199.8 239.6 53% 210.6 262.2 472.8 95%
PACC Intermediate
throughput 196.9 - 196.9 43% 35.0 - 35.0 7%
Unfinished and
blendstocks 12.4 7.4 19.8 4% (11.4) 3.6 (7.8) -2%
Total
feedstocks 249.1 207.2 456.3 100% 234.2 265.8 500.0 100%
Production:
Light products:
Conventional
gasoline 85.8 105.5 191.3 42% 80.3 119.5 199.8 40%
Premium and
reformulated
gasoline 23.7 15.0 38.7 8% 17.9 37.2 55.1 11%
Diesel fuel 85.5 45.5 131.0 29% 68.4 63.3 131.7 26%
Jet fuel 23.0 21.1 44.1 10% 18.1 22.9 41.0 8%
Petrochemical
products 16.2 10.1 26.3 6% 24.4 11.5 35.9 7%
Total light
products 234.2 197.2 431.4 95% 209.1 254.4 463.5 92%
Petroleum coke and
sulfur 6.4 5.6 12.0 3% 10.5 8.3 18.8 4%
Residual oil 5.2 4.7 9.9 2% 14.0 4.7 18.7 4%
Total
production 245.8 207.5 453.3 100% 233.6 267.4 501.0 100%
Year ended December 31, 2001
Selected Volumetric
Data Percent
(in thousands of Port of
barrels per day) Arthur Midwest* Total Total
Feedstocks:
Crude oil throughput:
Sweet - 143.6 143.6 32%
Light/medium sour 10.3 59.4 69.7 16%
Heavy sour 33.5 6.9 40.4 9%
Total crude oil 43.8 209.9 253.7 57%
PACC Intermediate throughput 180.0 - 180.0 41%
Unfinished and blendstocks 11.4 (0.8) 10.6 2%
Total feedstocks 235.2 209.1 444.3 100%
Production:
Light products:
Conventional gasoline 82.9 101.9 184.8 42%
Premium and reformulated
gasoline 24.4 20.5 44.9 10%
Diesel fuel 77.2 44.5 121.7 27%
Jet fuel 19.7 22.7 42.4 10%
Petrochemical products 18.3 10.2 28.5 6%
Total light products 222.5 199.8 422.3 95%
Petroleum coke and sulfur 8.8 6.6 15.4 3%
Residual oil 4.7 3.2 7.9 2%
Total production 236.0 209.6 445.6 100%
* Includes results of the company's
Blue Island refinery, which was closed
in January 2001 as follows:
Three months ended December 31,
2001 2000
Total feedstocks - 63.1
Total production - 63.1
Year ended December 31, 2000
Selected Volumetric
Data Percent
(in thousands of Port of
barrels per day) Arthur Midwest* Total Total
Feedstocks:
Crude oil throughput:
Sweet 3.6 197.9 201.5 43%
Light/medium sour 151.5 52.3 203.8 43%
Heavy sour 38.1 15.7 53.8 11%
Total crude oil 193.2 265.9 459.1 97%
PACC Intermediate throughput 8.8 - 8.8 2%
Unfinished and blendstocks 5.0 (0.4) 4.6 1%
Total feedstocks 207.0 265.5 472.5 100%
Production:
Light products:
Conventional gasoline 73.4 119.6 193.0 41%
Premium and reformulated
gasoline 18.1 39.7 57.8 11%
Diesel fuel 58.0 59.8 117.8 25%
Jet fuel 16.6 21.4 38.0 8%
Petrochemical products 23.7 12.5 36.2 8%
Total light products 189.8 253.0 442.8 93%
Petroleum coke and sulfur 10.3 7.7 18.0 4%
Residual oil 9.2 6.0 15.2 3%
Total production 209.3 266.7 476.0 100%
* Includes results of the company's
Blue Island refinery, which was closed
in January 2001 as follows: Year ended December 31,
2001 2000
Total feedstocks 4.3 68.2
Total production 4.3 68.0
Sabine River Holding Corp. and Subsidiaries
Earnings Release
Three months
ended Year ended
December 31, December 31,
(dollars in millions, unaudited) 2001 2000 * 2001 2000 *
Operating revenues $376.4 $100.3 $1,882.4 $100.3
Cost of sales 322.6 83.6 1,460.2 83.6
Gross margin 53.8 16.7 422.2 16.7
Operating expenses 26.2 7.0 140.4 10.2
General and administrative expenses 1.1 0.5 4.1 1.1
EBITDA(a) 26.5 9.2 277.7 5.4
Depreciation 5.3 - 20.5 -
Operating income 21.2 9.2 257.2 5.4
Interest expense and finance income,
net (14.3) (0.9) (60.1) (3.2)
Income tax (provision) benefit (2.3) 4.1 (69.0) 4.1
Net income $4.6 $12.4 $128.1 $6.3
(a) Earnings before interest, income
taxes, depreciation and
amortization
Selected Volumetric and Per Barrel
Data
Production (Mbbls per day) 217.0 40.0 197.8 10.1
Crude oil throughput (Mbbls per day) 203.7 35.6 186.0 8.9
Per barrel of throughput:
Gross margin $2.87 $5.11 $6.22 $5.11
Operating expenses $1.40 $2.13 $2.07 $3.10
Market Indicators (dollars per
barrel)
West Texas Intermediate, or "WTI"
(sweet) $20.32 $31.94 $25.96 $30.37
Crack Spreads (3/2/1):
Gulf Coast $1.95 $3.73 $4.22 $4.17
Crude Oil Differentials:
WTI less WTS (sour) $1.91 $2.79 $2.81 $2.17
WTI less Maya (heavy sour) $6.33 $9.68 $8.76 $7.29
WTI less Dated Brent (foreign) $0.87 $2.42 $1.48 $1.92
Natural Gas (per mmbtu) $2.17 $5.25 $4.22 $3.94
December 31, December 31,
Financial Position 2001 2000
Cash and short-term investments $222.8 $36.4
Other working capital (120.8) (35.3)
Total assets 979.1 802.7
Long-term debt 463.0 542.6
Stockholders' equity 242.3 114.2
* Operations of the heavy oil facility commenced in early December of
2000. Financial results in the pre-operating stage were related
primarily to the construction and financing of the facility.
Three months ended December 31,
Selected Volumetric Data 2001 2000
(in thousands of barrels per day) Barrels Percent Barrels Percent
Feedstocks:
Crude oil:
Sweet - - - -
Light/medium sour 40.8 20% 14.6 41%
Heavy sour 162.9 80% 21.0 59%
Total crude oil 203.7 100% 35.6 100%
Production:
Intermediate throughput produced
for PRG 196.9 91% 35.0 88%
Petroleum coke and sulfur 20.1 9% 5.0 12%
Total production 217.0 100% 40.0 100%
Year ended December 31,
Selected Volumetric Data 2001 2000
(in thousands of barrels per day) Barrels Percent Barrels Percent
Feedstocks:
Crude oil:
Sweet - - - -
Light/medium sour 38.0 20% 3.6 40%
Heavy sour 148.0 80% 5.3 60%
Total crude oil 186.0 100% 8.9 100%
Production:
Intermediate throughput produced
for PRG 180.0 91% 8.8 87%
Petroleum coke and sulfur 17.8 9% 1.3 13%
Total production 197.8 100% 10.1 100%
SOURCE Premcor Inc.
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Related links:
http://www.premcorinc.com
CONTACT:
Investors, Karen Davis, +1-314-854-1424,
ir@premcor.com , or Media, Jim Joyce, +1-314-854-1511,
jim.joyce@premcor.com
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