ST. LOUIS, Nov. 8 /PRNewswire/ -- Premcor Inc. today reported earnings
before interest, taxes, depreciation and amortization (EBITDA) for the third
quarter of 2001 of $154.4 million, excluding $26.2 million in restructuring
and other charges. This represents a nearly four-fold increase compared to
third quarter 2000 EBITDA of $41.3 million. Net income, excluding the after-
tax effect of restructuring and other charges and a $5.6 million extraordinary
gain, was $54.1 million for the third quarter 2001, compared to a net loss of
$1.3 million for the third quarter of last year. Including these special
items, net income for this year's third quarter was $44.3 million.
EBITDA, excluding restructuring and other charges of $190.2 million, rose
to $636.1 million for the first nine months of 2001, from $183.4 million for
the same period last year. Net income for the nine months ended September 30,
2001 was $272.5 million, excluding the after-tax effect of restructuring and
other charges, the $5.6 million extraordinary gain and a $30 million income
tax benefit reported in the first quarter, compared to net income of
$61.8 million in the same period of 2000. Including these special items, net
income for the 2001 nine months was $187.1 million.
"Our investment in heavy oil processing capabilities at our Port Arthur,
Texas refinery and the strong performance of our Midwest refineries
contributed to excellent results in the third quarter and highlighted the
earning power of our assets," stated William C. Rusnack, President and Chief
Executive Officer of Premcor.
"With the completion of the Port Arthur heavy oil upgrade project, we
processed over 80% heavy sour crude oil at the refinery compared to 14% in
last year's third quarter," continued Rusnack. "This less expensive heavy
sour crude oil slate enabled us to achieve a substantial year over year
improvement in our gross refining margin even though the Gulf Coast crack
spread declined from record levels in last year's third quarter to just over
historically average levels this year.
"Our Lima, Ohio and Hartford, Illinois refineries benefited from record
high third quarter industry refining margins. These refineries performed
exceptionally well and their results were the most significant contributor to
the year over year improvement in the company's third quarter net income,"
said Rusnack.
Premcor USA Inc. (Premcor USA), a wholly-owned subsidiary of Premcor Inc.
and the parent of The Premcor Refining Group Inc. (PRG), reported third
quarter 2001 EBITDA of $111.7 million, excluding $26.2 million in
restructuring and other charges. Net income for the third quarter of 2001,
excluding the after-tax effect of restructuring and other charges and the
$5.6 million extraordinary gain, rose to $40.8 million, from $1.2 million last
year. Including these special items, net income for the third quarter of 2001
was $31.0 million.
Premcor USA's EBITDA for the nine months ended September 30, 2001,
excluding restructuring and other charges was $383.4 million, up from
$187.2 million for the same period a year ago. Net income for the 2001 nine
months was $160.3 million, excluding special items, up from $67.3 million for
the same period last year. Including special items, 2001 net income was
$75.0 million.
SABINE RIVER HOLDING CORP.
Sabine River Holding Corp. (Sabine), a 90% owned subsidiary of Premcor
Inc. and the general partner of Port Arthur Coker Company L.P. (PACC),
reported third quarter 2001 EBITDA of $42.7 million, compared to a loss of
$1.6 million for the same quarter last year. The company reported net income
of $14.8 million for this year's third quarter, compared to a loss of
$2.8 million for the same period a year ago.
For the nine months ended September 30, 2001, EBITDA was $251.2 million,
compared to a loss of $3.8 million last year. This year's year-to-date net
income was $123.5 million, compared to a $6.1 million net loss in the nine-
month period last year. The prior year results for both the quarter and the
nine-months included only pre-operating and general and administrative
expenses.
RESTRUCTURING AND OTHER CHARGES
For the third quarter 2001, Premcor Inc. and Premcor USA reported
restructuring and other charges totaling $26.2 million. Of this amount,
$17.2 million represented an adjustment to the charge related to the company's
closure of its Blue Island refinery in the first quarter of 2001, and
$9.0 million is associated with the decommissioning of two cokers that were
idled in conjunction with the Port Arthur heavy oil upgrade project. For the
nine months ended September 30, 2001, restructuring and other charges totaled
$190.2 million representing $167.2 million for the Blue Island closure,
$9.0 million for the Port Arthur cokers and $14.0 million related to
previously discontinued retail operations.
CASH BALANCES
At September 30, 2001, Premcor Inc. had $545.3 million of consolidated
cash and short-term investments, a decrease of $50.4 million from the end of
the second quarter 2001. During the third quarter of 2001, the company
repurchased long-term debt and exchangeable preferred stock with an aggregate
face value of $57.8 million for $48.5 million and recorded an after-tax
extraordinary gain of $5.6 million on the transactions. Total capital and
turnaround expenditures at Premcor Inc. for the third quarter of 2001 were
$20.6 million.
Included in the consolidated cash balance was $315.0 million at Premcor
USA, of which $33.4 million was available at the Premcor USA level and
$281.6 million was available at the PRG level. Sabine had $228.2 million in
cash in support of PACC operations and obligations.
A conference call concerning third quarter 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.
For further information, please visit us on the worldwide web at
http://www.premcor.com , or contact:
Investors: Media:
Karen Davis Jim Joyce
(314) 854-1424 (314) 854-1511
ir@premcor.com jim.joyce@premcor.com
Premcor Inc. and Subsidiaries
Earnings Release
Three months ended Nine months ended
September 30, September 30,
(dollars in millions, unaudited) 2001 2000 2001 2000
Operating revenues $1,666.2 $2,032.6 $5,170.9 $5,312.4
Cost of sales 1,390.8 1,862.3 4,133.7 4,761.5
Gross margin 275.4 170.3 1,037.2 550.9
Operating expenses 104.9 116.4 355.8 331.9
General and administrative
expenses 16.1 12.6 45.3 35.6
Adjusted EBITDA (A) 154.4 41.3 636.1 183.4
Depreciation and amortization 23.2 18.9 67.7 52.3
Restructuring and other charges 26.2 - 190.2 -
Operating income 105.0 22.4 378.2 131.1
Interest expense and finance
income, net (33.8) (21.4) (106.3) (62.2)
Income tax provision (28.3) (0.2) (70.1) (0.6)
Minority interest (1.5) 0.3 (12.4) 0.6
Net income before extraordinary
item and dividends 41.4 1.1 189.4 68.9
Gain on repurchase of long-term
debt, net of tax 5.6 - 5.6 -
Preferred stock dividends (2.7) (2.4) (7.9) (7.1)
Net income (loss) available to
common shareholders $44.3 $(1.3) $187.1 $61.8
(A) Earnings before interest, income taxes, depreciation, amortization and
restructuring and other charges.
Selected Volumetric and Per Barrel
Data
Production (Mbbls per day) 452.2 512.3 459.6 467.6
Crude oil throughput (Mbbls per
day) 429.5 531.8 438.8 454.4
Per barrel of throughput:
Gross margin $6.97 $3.48 $8.66 $4.42
Operating expenses $2.65 $2.38 $2.97 $2.67
Market Indicators (dollars per
barrel)
West Texas Intermediate, or "WTI"
(sweet) $26.81 $31.75 $27.84 $29.85
Crack Spreads (3/2/1):
Gulf Coast $3.41 $4.37 $4.98 $4.32
Chicago $9.21 $5.09 $9.04 $5.92
Crude Oil Differentials:
WTI less WTS (sour) $2.02 $1.94 $3.11 $1.97
WTI less Maya (heavy sour) $7.63 $7.39 $9.57 $6.49
WTI less Dated Brent (foreign) $1.43 $1.19 $1.68 $1.76
Natural Gas (per mmbtu) $3.01 $4.55 $4.90 $3.50
September 30, December 31,
Financial Position 2001 2000
Cash and short-term investments $545.3 $291.8
Other working capital 80.4 33.2
Total assets 2,593.5 2,469.1
Long-term debt and exchangeable
preferred stock 1,534.0 1,605.1
Shareholders' equity 339.2 152.1
Premcor Inc. and Subsidiaries
Earnings Release
Three months ended Three months ended
September 30, 2001 September 30, 2000
Selected Volumetric
Data Percent Percent
(in thousands of Port Midwest* of Port Midwest* of
barrels per day) Arthur Total Total Arthur Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 157.8 157.8 36% 5.7 221.4 227.1 45%
Light/Medium
sour 41.2 49.4 90.6 20% 207.0 39.3 246.3 48%
Heavy sour 174.4 6.7 181.1 41% 34.6 23.8 58.4 11%
Total crude
oil 215.6 213.9 429.5 97% 247.3 284.5 531.8 104%
Unfinished and
blendstocks 17.9 (5.0) 12.9 3% (16.8) (5.9) (22.7) -4%
Total
feedstocks 233.5 208.9 442.4 100% 230.5 278.6 509.1 100%
-
Production:
Light products:
Conventional
gasoline 82.2 103.3 185.5 41% 85.9 127.0 212.9 42%
Premium and
reformulated
gasoline 24.0 20.2 44.2 10% 9.1 39.6 48.7 10%
Diesel fuel 76.1 40.5 116.6 26% 68.6 61.4 130.0 25%
Jet fuel 17.9 25.8 43.7 10% 17.0 24.4 41.4 8%
Petrochemical
products 17.2 9.7 26.9 6% 24.0 12.0 36.0 7%
Total light
products 217.4 199.5 416.9 93% 204.6 264.4 469.0 92%
Petroleum coke and
sulfur 22.5 6.8 29.3 6% 11.7 8.3 20.0 4%
Residual oil 4.3 1.7 6.0 1% 16.7 6.6 23.3 4%
Total
production 244.2 208.0 452.2 100% 233.0 279.3 512.3 100%
Nine months ended Nine months ended
September 30, 2001 September 30, 2000
Selected Volumetric
Data Percent Percent
(in thousands of Port Midwest* of Port Midwest* of
barrels per day) Arthur Total Total Arthur Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 147.0 147.0 32% 4.8 205.8 210.6 45%
Light/Medium
sour 48.7 60.7 109.4 25% 149.9 44.6 194.5 42%
Heavy sour 176.5 5.9 182.4 41% 32.6 16.7 49.3 11%
Total crude
oil 225.2 213.6 438.8 98% 187.3 267.1 454.4 98%
Unfinished and
blendstocks 10.8 (3.5) 7.3 2% 10.5 (1.7) 8.8 2%
Total
feedstocks 236.0 210.1 446.1 100% 197.8 265.4 463.2 100%
-
Production:
Light products:
Conventional
gasoline 81.9 100.6 182.5 40% 71.0 119.6 190.6 41%
Premium and
reformulated
gasoline 24.6 22.5 47.1 10% 18.2 40.6 58.8 12%
Diesel fuel 74.4 44.2 118.6 26% 54.6 58.7 113.3 24%
Jet fuel 18.6 23.2 41.8 9% 16.1 20.9 37.0 8%
Petrochemical
products 18.9 10.1 29.0 6% 23.5 12.7 36.2 8%
Total light
products 218.4 200.6 419.0 91% 183.4 252.5 435.9 93%
Petroleum coke and
sulfur 26.5 6.9 33.4 7% 10.2 7.6 17.8 4%
Residual oil 4.6 2.6 7.2 2% 7.5 6.4 13.9 3%
Total
production 249.5 210.1 459.6 100% 201.1 266.5 467.6 100%
* Includes results of the
company's Blue Island
refinery, which was Three months ended Nine months ended
closed in January 2001 September 30, September 30,
as follows: 2001 2000 2001 2000
Total feedstocks - 73.6 5.8 69.8
Total production - 73.3 5.7 69.6
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended Nine months ended
(dollars in millions, September 30, September 30,
unaudited) 2001 2000 2001 2000
Operating revenues $1,701.2 $2,032.6 $5,265.0 $5,312.4
Cost of sales 1,488.9 1,862.3 4,573.3 4,761.5
Gross margin 212.3 170.3 691.7 550.9
Operating expenses 85.6 115.0 266.2 328.7
General and
administrative
expenses 15.0 12.3 42.1 35.0
Adjusted EBITDA (A) 111.7 43.0 383.4 187.2
Depreciation and
amortization 17.9 18.9 52.5 52.3
Restructuring and
other charges 26.2 - 190.2 -
Operating income 67.6 24.1 140.7 134.9
Interest expense
and finance income,
net:
Premcor USA Inc. (4.4) (4.5) (13.2) (13.6)
The Premcor
Refining Group Inc. (14.9) (15.8) (47.3) (46.3)
Income tax provision (20.2) (0.2) (2.9) (0.6)
Net income before
extraordinary item 28.1 3.6 77.3 74.4
Gain on repurchase of
long-term debt, net
of tax 5.6 - 5.6 -
Preferred stock
dividends (2.7) (2.4) (7.9) (7.1)
Net income
available to common
shareholders $31.0 $1.2 $75.0 $67.3
(A) Earnings before
interest, income
taxes, depreciation,
amortization and
restructuring and
other charges.
Selected Volumetric and
Per Barrel Data
Production (Mbbls
per day) 434.9 512.3 442.6 467.6
Crude oil throughput
(Mbbls per day) 252.4 531.8 258.6 454.4
PACC Intermediate
throughput (Mbbls
per day) 157.8 - 174.3 -
Total throughput 410.2 531.8 432.9 454.4
Per barrel of
throughput:
Gross margin $5.63 $3.48 $5.85 $4.42
Operating expenses $2.27 $2.35 $2.25 $2.64
Market Indicators
(dollars per barrel)
West Texas
Intermediate, or
"WTI" (sweet) $26.81 $31.75 $27.84 $29.85
Crack Spreads (3/2/1):
Gulf Coast $3.41 $4.37 $4.98 $4.32
Chicago $9.21 $5.09 $9.04 $5.92
Crude Oil
Differentials:
WTI less WTS
(sour) $2.02 $1.94 $3.11 $1.97
WTI less Maya
(heavy sour) $7.63 $7.39 $9.57 $6.49
WTI less Dated
Brent (foreign) $1.43 $1.19 $1.68 $1.76
Natural Gas
(per mmbtu) $3.01 $4.55 $4.90 $3.50
September 30, December 31,
Financial Position 2001 2000
Cash and short-term investments:
Premcor USA Inc. $33.4 $38.9
The Premcor Refining Group Inc. 281.6 216.5
Other working capital 161.7 66.4
Total assets 1,751.4 1,761.0
Long-term debt and
exchangeable preferred stock:
Premcor USA Inc. 236.7 265.6
The Premcor Refining Group Inc. 774.7 796.9
Shareholders' equity 118.0 43.0
Premcor USA Inc. and Subsidiaries
Earnings Release
Three months ended Three months ended
September 30, 2001 September 30, 2000
Selected Volumetric
Data Percent Percent
(in thousands of Port Midwest* of Port Midwest* of
barrels per day) Arthur Total Total Arthur Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 157.8 157.8 37% 5.7 221.4 227.1 45%
Light/Medium
sour 4.9 49.4 54.3 13% 207.0 39.3 246.3 48%
Heavy sour 33.6 6.7 40.3 10% 34.6 23.8 58.4 12%
Total crude
oil 38.5 213.9 252.4 60% 247.3 284.5 531.8 105%
PACC Intermediate
throughput 157.8 - 157.8 37% - - - -
Unfinished and
blendstocks 17.9 (5.0) 12.9 3% (16.8) (5.9) (22.7) -5%
Total
feedstocks 214.2 208.9 423.1 100% 230.5 278.6 509.1 100%
Production:
Light products:
Conventional
gasoline 82.2 103.3 185.5 43% 85.9 127.0 212.9 42%
Premium and
reformulated
gasoline 24.0 20.2 44.2 10% 9.1 39.6 48.7 10%
Diesel fuel 76.1 40.5 116.6 27% 68.6 61.4 130.0 25%
Jet fuel 17.9 25.8 43.7 10% 17.0 24.4 41.4 8%
Petrochemical
products 17.2 9.7 26.9 6% 24.0 12.0 36.0 7%
Total light
products 217.4 199.5 416.9 96% 204.6 264.4 469.0 92%
Petroleum coke and
sulfur 4.9 6.8 11.7 3% 11.7 8.3 20.0 4%
Residual oil 4.6 1.7 6.3 1% 16.7 6.6 23.3 4%
Total
production 226.9 208.0 434.9 100% 233.0 279.3 512.3 100%
Nine months ended Nine months ended
September 30, 2001 September 30, 2000
Selected Volumetric
Data Percent Percent
(in thousands of Port Midwest* of Port Midwest* of
barrels per day) Arthur Total Total Arthur Total Total
Feedstocks:
Crude oil
throughput:
Sweet - 147.0 147.0 33% 4.8 205.8 210.6 45%
Light/Medium
sour 11.6 60.7 72.3 16% 149.9 44.6 194.5 42%
Heavy sour 33.4 5.9 39.3 9% 32.6 16.7 49.3 11%
Total crude
oil 45.0 213.6 258.6 58% 187.3 267.1 454.4 98%
PACC Intermediate
throughput 174.3 - 174.3 40% - - - -
Unfinished and
blendstocks 10.8 (3.5) 7.3 2% 10.5 (1.7) 8.8 2%
Total
feedstocks 230.1 210.1 440.2 100% 197.8 265.4 463.2 100%
Production:
Light products:
Conventional
gasoline 81.9 100.6 182.5 41% 71.0 119.6 190.6 41%
Premium and
reformulated
gasoline 24.6 22.5 47.1 11% 18.2 40.6 58.8 12%
Diesel fuel 74.4 44.2 118.6 27% 54.6 58.7 113.3 24%
Jet fuel 18.6 23.2 41.8 8% 16.1 20.9 37.0 8%
Petrochemical
products 18.9 10.1 29.0 7% 23.5 12.7 36.2 8%
Total light
products 218.4 200.6 419.0 94% 183.4 252.5 435.9 93%
Petroleum coke and
sulfur 9.5 6.9 16.4 4% 10.2 7.6 17.8 4%
Residual oil 4.6 2.6 7.2 2% 7.5 6.4 13.9 3%
Total
production 232.5 210.1 442.6 100% 201.1 266.5 467.6 100%
*Includes results of
the company's Blue Island
refinery, which was Three months ended Nine months ended
closed in January 2001 September 30, September 30,
as follows: 2001 2000 2001 2000
Total feedstocks - 73.6 5.8 69.8
Total production - 73.3 5.7 69.6
Sabine River Holding Corp. and Subsidiaries
Earnings Release
Three months
ended Nine months ended
September 30, September 30,
(dollars in millions, unaudited) 2001 2000 2001 2000
Operating revenues $461.3 $- $1,506.0 $-
Cost of sales 390.3 - 1,137.6 -
Gross margin 71.0 - 368.4 -
Operating expenses 27.3 1.3 114.2 3.2
General and administrative expenses 1.0 0.3 3.0 0.6
EBITDA(1) 42.7 (1.6) 251.2 (3.8)
Depreciation 5.3 - 15.2 -
Operating income (loss) 37.4 (1.6) 236.0 (3.8)
Interest expense and finance income,
net (14.5) (1.2) (45.8) (2.3)
Income tax (provision) benefit (8.1) - (66.7) -
Net income (loss) $14.8 $(2.8) $123.5 $(6.1)
(A) Earnings before interest, income
taxes, depreciation and amortization
Selected Volumetric and Per Barrel Data
Production (Mbbls per day) 175.1 - 191.3 -
Crude oil throughput (Mbbls per day) 177.1 - 180.2 -
Per barrel of throughput:
Gross margin $4.36 $- $7.49 $-
Operating expenses $1.68 $- $2.32 $-
Market Indicators (dollars per barrel)
West Texas Intermediate, or "WTI"
(sweet) $26.81 $31.75 $27.84 $29.85
Crack Spreads (3/2/1):
Gulf Coast $3.41 $4.37 $4.98 $4.32
Chicago $9.21 $5.09 $9.04 $5.92
Crude Oil Differentials:
WTI less WTS (sour) $2.02 $1.94 $3.11 $1.97
WTI less Maya (heavy sour) $7.63 $7.39 $9.57 $6.49
WTI less Dated Brent (foreign) $1.43 $1.19 $1.68 $1.76
Natural Gas (per mmbtu) $3.01 $4.55 $4.90 $3.50
September 30, December 31,
Financial Position 2001 2000
Cash and short-term investments $228.2 $36.4
Other working capital (82.3) (35.3)
Total assets 1,051.9 802.7
Long-term debt 522.6 542.6
Shareholders' equity 237.7 114.2
Three months ended September 30,
Selected Volumetric Data 2001 2000
(in thousands of barrels per day) Barrels Percent Barrels Percent
Feedstocks:
Crude oil:
Sweet - - - -
Light/Medium sour 36.3 20% - -
Heavy sour 140.8 80% - -
Total crude oil 177.1 100% - -
Production:
Intermediate throughput produced
for PRG 157.8 90% - -
Petroleum coke and sulfur 17.3 10% - -
Total production 175.1 100% - -
Nine months ended September 30,
Selected Volumetric Data 2001 2000
(in thousands of barrels per day) Barrels Percent Barrels Percent
Feedstocks:
Crude oil:
Sweet - - - -
Light/Medium sour 37.1 21% - -
Heavy sour 143.1 79% - -
Total crude oil 180.2 100% - -
Production:
Intermediate throughput produced
for PRG 174.3 91% - -
Petroleum coke and sulfur 17.0 9% - -
Total production 191.3 100% - -
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 , both of Premcor Inc.
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