Unocal sees strong earnings; downstream margins, commodity prices cited
Brea, Calif., June 3, 1996 -- All of Unocal Corporation's business segments are meeting or exceeding the company's key financial targets, Roger C. Beach, Unocal chairman and chief executive officer, told stockholders at the company's annual meeting here today.
"I expect that our adjusted six months' earnings will be approximately equal to our full year adjusted 1995 results," Beach said, citing improvements in operations.
"We have seen a sharp improvement in the performance of the 76 Products Company over the first quarter. Refining and marketing margins have risen dramatically during this quarter, and gasoline sales volumes are strong," Beach said.
The company's reformatted stations, which incorporate new convenience stores and car washes, are averaging a 40 percent improvement in gasoline volumes versus the same site before the rebuild.
Unocal's natural gas production continues to be strong, while prices for both crude oil and natural gas are up substantially, compared with 1995.
Beach also said that Unocal's agricultural products business units are enjoying another strong year with high fertilizer prices and production.
"While our overall results have obviously been helped by strong commodity prices and improved downstream margins, our ongoing initiatives to improve performance and maintain high production rates and sales volumes are an important factor in the improved earnings," Beach said.
The company's adjusted earnings were $1.06 per common share in 1995. In the first quarter 1996, the company earned 45 cents per common share, excluding special items.
Updated: June 1996