Newspaper article THE JOURNAL RECORD

Ultramar Diamond Posts Net Loss for 2nd Quarter

Newspaper article THE JOURNAL RECORD

Ultramar Diamond Posts Net Loss for 2nd Quarter

Article excerpt

SAN ANTONIO (JR) -- Ultramar Diamond Shamrock Thursday posted a second quarter net loss of $32.6 million or 36 cents per share due to special charges.

The net loss compared with net income of $46.3 million, or 60 cents per share, in the second quarter of 1997.

The 1998 second quarter results include a one-time pre-tax charge of $131.6 million ($79.1 million after-tax and 88 cents per share) to restructure the company's retail marketing, refining and pipeline operations and support services as announced on June 9.

In addition, a one-time pre-tax charge of $11.2 million ($6.7 million after-tax and 8 cents per share) to write off costs associated with the aborted Petro-Canada joint venture and a non-cash charge for a reduction in the carrying value of inventories of $12.5 million pre-tax ($7.5 million after-tax and 8 cents per share) were recorded in the second quarter.

Ultramar reported net income before special items of $60.7 million, or 68 cents per share, for the second quarter of 1998, compared to $46.3 million, or 60 cents per share, for the second quarter of 1997.

Revenues for the second quarter totaled $3 billion, up 26 percent from $2.4 billion a year earlier.

Ultramar reported a net loss of $16.2 million, or 19 cents per share, for the first six months of 1998. Net income for the six-month period before special charges was $85.1 million, or 96 cents per share, as compared to $73.9 million, or 96 cents per share, for the first six months of 1997.

Six-month revenues totaled $5.8 billion, 17 percent higher than $4.96 billion the same period for the previous year.

Cash flow from operations before special charges in the second quarter of 1998 was $164.5 million, or $1.82 per share, compared to $124.7 million, or $1.67 per share, for the same period last year.

First half 1998 cash flow before special charges was $268.2 million, or $3.02 per share, compared to $212.6 million, or $2.84 per basic share, for the first six months of 1997.

"We were very pleased with the operational performance of the company in the second quarter, but our financial results continued to be negatively impacted by the continuing drop in crude oil prices," said Roger Hemminghaus, Ultramar's chairman and chief executive officer.

"Earnings were negatively impacted by an estimated $12 million, or 13 cents per share, in the second quarter and $25.3 million or 28 cents per share lower in the first half as a consequence of buying crude oil for the company's Mid-Continent refineries in a declining market with an approximate lag of 40 days between the time such crude is priced and the date when delivery is taken by the company."

The company's refining segment reported a second quarter operating profit of $125.7 million, compared to last year's second quarter of $78.5 million. The company's refineries produced 686,000 barrels per day in the second quarter of 1998, compared with 471,000 barrels per day in the same quarter of 1997. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.