OLD GREENWICH, Conn., May 9 /PRNewswire-FirstCall/ -- Premcor Inc.
(NYSE: PCO) today reported a net loss of $99.5 million, or $3.13 per share, in
the first quarter of 2002 compared to a net loss of $31.7 million, or $1.00
per share, in the first quarter of 2001. Excluding the effect of the special
items discussed below, the first quarter 2002 net loss was $12.2 million, or
$.38 per share, compared to net earnings of $43.9 million, or $1.38 per share,
in the year-earlier period.
Commenting on the quarter, Thomas D. O'Malley, Premcor's Chairman, Chief
Executive Officer, and President, said, "Excess oil product inventories, which
built up during the post-September 11th crisis, and exceptionally mild winter
weather resulted in an extremely poor U.S. refining margin environment in
January and February 2002. Our refineries operated well during the quarter,
with a slight decline in year-over-year crude oil throughput rates due to unit
turnarounds. Refining industry operating rate reductions led to lower oil
product inventories by the end of February, and refining margins improved
significantly in March 2002. All three of our refineries were profitable in
that month."
Commenting on the company's recently completed initial public offering,
O'Malley said, "We are pleased with the response to the initial public
offering of our common stock, which closed on May 3, 2002. The offering of
20.7 million shares, plus an additional 850,000 shares purchased by me and two
directors, netted the company approximately $482 million. All of the proceeds
will be used to redeem or repurchase long-term debt of our subsidiaries as an
important first step toward improving our capital structure. Additionally,
during the first quarter of 2002, a portion of our cash balances was used to
pay down $66.2 million in long-term debt." O'Malley continued, "The company
has a clear goal of significantly reducing debt levels prior to the end of
this year and achieving a 50 percent debt to total capitalization ratio by
year-end. We are determined to improve the company's credit standing so that
we can better compete in an industry dominated by strong financial entities."
For the first quarter of 2002, special items included restructuring and
other charges totaling $142.0 million, including $131.2 million relating to
the previously announced plan to discontinue refining operations in October
2002 at the company's Hartford, Illinois refinery and $10.8 million, primarily
due to severance and other charges relating to recent management changes. The
Hartford charge includes a non-cash asset write-down of $73.6 million and
$57.6 million related to accruals for employee severance, other shutdown
costs, and future environmental expenses to be expended over the next several
years. The after-tax effect of these special items on the quarter was a net
loss of $87.3 million, equal to $2.75 per share.
Commenting on the planned closure of the Hartford refinery, O'Malley said,
"Our industry must make enormous investments over the next four years to
comply with the new stringent, EPA-mandated specifications for gasoline and
diesel. We have been unable to find any acceptable economic case to justify
these investments at the Hartford refinery."
Special items in the first quarter of 2001 included a $150.0 million pre-
tax charge for closure of the company's Blue Island, Illinois refinery in
January 2001, an $8.5 million net loss from discontinued retail marketing
operations, and a $30 million income tax benefit from prior years. The after-
tax effect of these special items on the quarter was a net loss of
$75.6 million, or $2.38 per share.
The company's regular quarterly conference call concerning the quarter's
results will be webcast live today at 9:30 am EDT 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). The company has announced
it will discontinue refining operations at the Hartford, Illinois refinery in
October 2002.
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 the company's Form S-1 and its
subsidiaries' 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
March 31,
(dollars in millions, unaudited) 2002 2001
Operating revenues $1,228.3 $1,686.4
Cost of sales 1,061.6 1,405.6
Gross margin 166.7 280.8
Operating expenses 114.5 132.8
General and administrative expenses 16.1 12.6
Adjusted EBITDA (A) 36.1 135.4
Restructuring and other charges 142.0 150.0
EBITDA (A) (105.9) (14.6)
Depreciation and amortization 22.2 21.6
Operating loss (128.1) (36.2)
Interest expense and finance income,
net (31.0) (37.2)
Income tax benefit 61.3 56.0
Minority interest 0.8 (3.3)
Loss from continuing operations (97.0) (20.7)
Discontinued operations, net of tax - (8.5)
Net loss (97.0) (29.2)
Preferred stock dividends (2.5) (2.5)
Net loss available to common
stockholders $(99.5) $(31.7)
Net loss per common share, basic and
fully-diluted (in dollars):
Loss from continuing operations $(3.13) $(0.73)
Discontinued operations - (0.27)
Net loss $(3.13) $(1.00)
Weighted average common shares
outstanding (in millions) 31.8 31.8
(A) 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) 443.6 466.3
Crude oil throughput (Mbbls per day) 434.2 443.1
Per barrel of throughput:
Gross margin $4.27 $7.04
Operating expenses $2.93 $3.33
Market Indicators (dollars per barrel)
West Texas Intermediate, or "WTI"
(sweet) $21.59 $28.81
Crack Spreads (3/2/1):
Gulf Coast $2.80 $5.01
Chicago $3.68 $5.94
Crude Oil Differentials:
WTI less WTS (sour) $1.32 $4.08
WTI less Maya (heavy sour) $5.43 $10.62
WTI less Dated Brent (foreign) $0.42 $2.90
Natural Gas (per mmbtu) $2.20 $7.00
March 31, December 31,
Financial Position 2002 2001
Cash and short-term investments $442.8 $542.6
Other working capital 22.8 (60.0)
Total assets 2,477.2 2,509.8
Long-term debt and exchangeable
preferred stock 1,475.3 1,486.2
Stockholders' equity 202.7 294.7
Premcor Inc. and Subsidiaries
Earnings Release
Three months ended March Three months ended March
31, 2002 31, 2001
Selected Volumetric
Data Percent Percent
(in thousands of Port of Port of
barrels per day) Arthur Midwest Total Total Arthur Midwest Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 134.4 134.4 32% - 139.8 139.8 31%
Light/medium
sour 49.0 60.3 109.3 26% 65.9 70.9 136.8 31%
Heavy sour 182.7 7.8 190.5 45% 163.7 2.8 166.5 37%
Total crude
oil 231.7 202.5 434.2 103% 229.6 213.5 443.1 99%
Unfinished and
blendstocks (16.7) 3.7 (13.0) -3% 4.7 1.3 6.0 1%
Total
feedstocks 215.0 206.2 421.2 100% 234.3 214.8 449.1 100%
Production:
Light products:
Conventional
gasoline 72.6 110.9 183.5 41% 78.2 100.6 178.8 38%
Premium and
reformulated
gasoline 13.9 15.0 28.9 7% 21.4 24.3 45.7 10%
Diesel fuel 64.3 36.9 101.2 23% 78.3 49.5 127.8 27%
Jet fuel 26.9 22.7 49.6 11% 14.3 18.8 33.1 7%
Petrochemical
products 15.9 11.4 27.3 6% 21.3 10.1 31.4 7%
Total light
products 193.6 196.9 390.5 88% 213.5 203.3 416.8 89%
Petroleum coke and
sulfur 33.2 7.8 41.0 9% 31.9 6.5 38.4 8%
Residual oil 9.2 2.9 12.1 3% 6.3 4.8 11.1 3%
Total
production 236.0 207.6 443.6 100% 251.7 214.6 466.3 100%
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended
March 31,
(dollars in millions, unaudited) 2002 2001
Operating revenues $1,255.9 $1,717.7
Cost of sales 1,122.7 1,550.5
Gross margin 133.2 167.2
Operating expenses 88.4 91.7
General and administrative expenses 14.9 11.6
Adjusted EBITDA (A) 29.9 63.9
Restructuring and other charges 142.0 150.0
EBITDA (A) (112.1) (86.1)
Depreciation and amortization 17.0 16.9
Operating loss (129.1) (103.0)
Interest expense and finance income,
net:
Premcor USA Inc. (2.5) (4.3)
The Premcor Refining Group Inc. (14.6) (17.4)
Income tax benefit 56.7 73.9
Loss from continuing operations (89.5) (50.8)
Discontinued operations, net of tax - (8.5)
Net loss (89.5) (59.3)
Preferred stock dividends (2.5) (2.5)
Net loss available to common
stockholder $(92.0) $(61.8)
(A) 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) 418.3 450.0
Crude oil throughput (Mbbls per day) 223.0 269.9
PACC Intermediate throughput (Mbbls
per day) 205.7 169.9
Total throughput 428.7 439.8
Per barrel of throughput:
Gross margin $3.45 $4.22
Operating expenses $2.29 $2.32
Market Indicators (dollars per barrel)
West Texas Intermediate, or "WTI"
(sweet) $21.59 $28.81
Crack Spreads (3/2/1):
Gulf Coast $2.80 $5.01
Chicago $3.68 $5.94
Crude Oil Differentials:
WTI less WTS (sour) $1.32 $4.08
WTI less Maya (heavy sour) $5.43 $10.62
WTI less Dated Brent (foreign) $0.42 $2.90
Natural Gas (per mmbtu) $2.20 $7.00
March 31, December 31,
Financial Position 2002 2001
Cash and short-term investments:
Premcor USA Inc. $25.6 $25.5
The Premcor Refining Group Inc. 209.2 261.4
Other working capital 149.6 90.3
Total assets 1,709.1 1,638.9
Long-term debt and exchangeable
preferred stock:
Premcor USA Inc. 241.7 239.2
The Premcor Refining Group Inc. 784.0 784.0
Stockholder's equity (15.5) 69.0
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended March Three months ended March
31, 2002 31, 2001
Selected Volumetric
Data Percent Percent
(in thousands of Port of Port of
barrels per day) Arthur Midwest Total Total Arthur Midwest Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 134.4 134.4 32% - 139.8 139.8 32%
Light/medium
sour 3.0 60.3 63.3 15% 23.9 70.9 94.8 21%
Heavy sour 17.5 7.8 25.3 6% 32.5 2.8 35.3 8%
Total crude
oil 20.5 202.5 223.0 53% 56.4 213.5 269.9 61%
PACC Intermediate
throughput 205.7 - 205.7 50% 169.9 - 169.9 38%
Unfinished and
blendstocks (16.7) 3.7 (13.0) -3% 4.7 1.3 6.0 1%
Total
feedstocks 209.5 206.2 415.7 100% 231.0 214.8 445.8 100%
Production:
Light products:
Conventional
gasoline 72.6 110.9 183.5 44% 78.2 100.6 178.8 40%
Premium and
reformulated
gasoline 13.9 15.0 28.9 6% 21.4 24.3 45.7 10%
Diesel fuel 64.3 36.9 101.2 24% 78.3 49.5 127.8 28%
Jet fuel 26.9 22.7 49.6 12% 14.3 18.8 33.1 8%
Petrochemical
products 15.9 11.4 27.3 7% 21.3 10.1 31.4 7%
Total light
products 193.6 196.9 390.5 93% 213.5 203.3 416.8 93%
Petroleum coke and
sulfur 7.4 7.8 15.2 4% 15.7 6.5 22.2 5%
Residual oil 9.7 2.9 12.6 3% 6.2 4.8 11.0 2%
Total
production 210.7 207.6 418.3 100% 235.4 214.6 450.0 100%
Sabine River Holding Corp. and Subsidiaries
Earnings Release
Three months ended
March 31,
(dollars in millions, unaudited) 2002 2001
Operating revenues $420.7 $507.6
Cost of sales 379.6 386.0
Gross margin 41.1 121.6
Operating expenses 33.7 49.1
General and administrative expenses 1.1 1.0
EBITDA(A) 6.3 71.5
Depreciation 5.2 4.7
Operating income 1.1 66.8
Interest expense and finance income,
net (13.7) (15.5)
Income tax (provision) benefit 4.5 (18.0)
Net income (loss) $(8.1) $33.3
(A) Earnings before interest, income
taxes, depreciation and amortization
Selected Volumetric and Per Barrel
Data
Production (Mbbls per day) 231.0 186.2
Crude oil throughput (Mbbls per day) 211.2 173.2
Per barrel of throughput:
Gross margin $2.16 $7.80
Operating expenses $1.77 $3.15
Market Indicators (dollars per
barrel)
West Texas Intermediate, or "WTI"
(sweet) $21.59 $28.81
Crack Spreads (3/2/1):
Gulf Coast $2.80 $5.01
Crude Oil Differentials:
WTI less WTS (sour) $1.32 $4.08
WTI less Maya (heavy sour) $5.43 $10.62
WTI less Dated Brent (foreign) $0.42 $2.90
Natural Gas (per mmbtu) $2.20 $7.00
March 31, December 31,
Financial Position 2002 2001
Cash and short-term investments $205.9 $253.6
Other working capital (127.9) (151.6)
Total assets 948.8 979.1
Long-term debt 449.5 463.0
Stockholders' equity 234.2 242.3
Three months ended Three months ended
March 31, March 31,
Selected Volumetric Data 2002 2001
(in thousands of barrels per day) Barrels Percent Barrels Percent
Feedstocks:
Crude oil:
Medium sour 46.0 22% 42.0 24%
Heavy sour 165.2 78% 131.2 76%
Total crude oil 211.2 100% 173.2 100%
Production:
Intermediate throughput produced
for PRG 205.7 89% 169.9 91%
Petroleum coke, sulfur and other 25.3 11% 16.3 9%
Total production 231.0 100% 186.2 100%
SOURCE Premcor Inc.
 back to top
Related links:
http://www.premcorinc.com
CONTACT:
Joe Watson, +1-314-854-9889, or Karen Davis,
+1-314-854-1424, both of Premcor Inc.
|
