Newspaper article THE JOURNAL RECORD

Kerr-Mcgee Earnings Up Sharply for Quarter

Newspaper article THE JOURNAL RECORD

Kerr-Mcgee Earnings Up Sharply for Quarter

Article excerpt

A sharp increase in net income for the first quarter of 1989 was reported Thursday by Kerr-McGee Corp. of Oklahoma City.

The net income for the quarter totaled $63.9 million, or $1.32 per share, and included $33.9 million, or 70 cents per share, from continuing operations and $30 million, or 62 cents per share, from the sale of uranium operations, said Frank A. McPherson, chairman and chief executive officer.

The net income for the quarter was up from $10.26 million, or 21 cents per share, for the first quarter 1988.

The company ended its participation in the uranium business when it sold uranium conversion facilities in Oklahoma to General Atomics, and a mill and other uranium properties in New Mexico to Rio Algom Limited.

Sales for the first quarter were up 8 percent to $717.1 million for the quarter, from $663.8 million in the first quarter of 1988.

Refining and marketing saw a profit for the first quarter despite a reduction in sales of refined products, the company said. Kerr-McGee said strong margins were seen from higher prices for refined products.

For the first quarter, refining and marketing saw a net operating profit of $24.2 million, compared to a loss of $15.1 million in the first quarter of 1988.

Total refinery runs averaged 140,815 barrels per day, up 6.1 percent from 132,691 barrels per day for the first quarter of 1988. Sales for refined products were down 5 percent, 198,619 barrels per day from 208,963 barrels per day.

Exploration and production net operating profits fell 95.2 percent to $796,000 from $16.7 million for the first quarter last year.

Although crude oil sales volumes and prices were up, those gains were offset by decreased natural gas sales and higher exploration costs, company officials explained.

The warm winter impacted natural gas results for the first quarter, a historically strong time for those sales compared to the second and third quarters. …

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