Unocal restates 1996 earnings per share to reflect non-cash reduction related to preferred exchange
El Segundo, Calif., May 23, 1997 -- Unocal Corporation today announced it has restated previously reported earnings-per-common-share amounts for the third quarter and full year 1996 to reflect a non-cash reduction resulting from the September 1996 exchange of 6-1/4% Trust Convertible Preferred Securities of Unocal Capital Trust for shares of Unocal's $3.50 Convertible Preferred Stock.
The restatement does not affect 1996 net earnings, cash flows or stockholders' equity amounts previously reported by the company.
Unocal recently initiated discussions with the Securities and Exchange Commission (SEC) seeking clarification of a technical accounting issue regarding whether the company's interpretation of its preferred exchange transaction as a security conversion, with no impact on earnings per share, was appropriate.
As a result of these discussions, the company restated earnings per share to reflect the excess of the fair value of the new preferred securities over the carrying amount of the $3.50 Preferred Stock that was received in the exchange. This amount had been properly charged to retained earnings in 1996.
The company has filed with the SEC amendments to its Form 10-K report for the year ended December 31, 1996, and Form 10-Q report for the quarter ended September 30, 1996.
The previously reported earnings per common share amounts for those periods are provided in the attached table.
Unocal Corporation is the world's largest independent exploration and production company with reserves of more than 9.8 trillion cubic feet of natural gas equivalent (1.6 billion barrels of oil equivalent) and major oil and gas production activities in Asia and the U.S. Gulf of Mexico.
Earnings Per Share Amounts As Revised Dollars in millions except per share amounts For the year ending December 31, 1996 Previously Reported Restated Net earnings $ 36 $36 Dividends on preferred stock 18 18 Non-cash charge related to exchange of preferred stock -- 54 Net earnings (loss) applicable to common stock $ 18 $(36) Earnings (loss) per share of common stock assuming no dilution: Continuing operations $1.76 $1.54 Discontinued operations (1.69) (1.69) Net earnings (loss) per share $0.07 $(0.15) For the three months ending September 30, 1996 Previously Reported Restated Net earnings $171 $171 Dividends on preferred stock -- -- Non-cash charge related to exchange of preferred stock -- 54 Net earnings applicable to common stock $171 $117 Earnings per share of common stock assuming no dilution: Continuing operations $0.54 $0.32 Discontinued operations 0.15 0.15 Net earnings per share $0.69 $0.47
Updated: May 1997