Unocal earns 55 cents per share in second quarter, down from 2001

Steve Sutherlin, PNA managing editor

Unocal Corp. reported adjusted after tax earnings of $134 million, or 55 cents per share (diluted) from continuing operations excluding special items in the second quarter of 2002. The company had adjusted after tax earnings from continuing operations of $228 million, or 92 cents per share (diluted) in second quarter 2001.

Unocal said it recorded second quarter 2002 net earnings of $114 million, or 46 cents per share (diluted) versus net earnings in the same period last year of $247 million, or 99 cents per share (diluted).

The quarter’s results reflect declines in natural gas and liquids prices and lower natural gas production, Unocal said.

Production to climb in second half

In Cook Inlet, however, Unocal said it has curtailed 20 million to 30 million cubic feet per day of Cook Inlet gas deliveries to Agrium’s Nikiski fertilizer plant because of the legal dispute between the companies. The curtailment will have little or no impact on its earnings since the gas is sold to Agrium at a base price of $1.20 per thousand cubic feet, Unocal said. The company’s average worldwide price for natural gas in the second quarter was $2.80 per mcf, compared with $3.41 per mcf a year ago.

Unocal said it expects production gains from several drilling projects on properties jointly held In the Gulf of Mexico with Forest Oil Corp. The company said its drilling capital plan is strongly weighted towards deep-shelf exploration, which could add longer-term reserves, versus development and exploitation to add near-term production. The Pailin II gas project in Thailand has started production, and the company has ramped-up oil production from the Yala and Plamuk fields, it said.

Worldwide, Unocal’s consolidated net daily production in the second quarter 2002 averaged 486,000 barrels of oil equivalent per day, compared with 516,000 BOE in second quarter 2001.