Energy Firms Release ’92 Reports; Shares Close Up

Occidental Petroleum Corp. on Thursday reported a net loss of $588 million for the fourth quarter after it took a $600-million, non-cash charge related to its exit from the coal business.

Also reporting quarterly results were energy companies Sun Co., which posted a net increase, and Phillips Petroleum Co., which reported a rise that also reflects a $20-million charge for early debt redemption.

Occidental said its fourth-quarter loss, equal to $1.94 a share, came on sales of $2.3 billion. This contrasts with a profit of $6 million, or 2 cents a share, on $2.5 billion in sales a year ago.

It said the charge to leave the coal business was taken to write down the value of its coal assets and to provide for anticipated liabilities associated with its operations. Occidental said it is negotiating with several parties on the sale of the coal business but gave no details.

“We have made no secret of the fact that our coal operation is not one of our core businesses, and we are proceeding with its disposal,” said Ray Irani, chairman, president and chief executive of the Los Angeles company.

For the year, Occidental reported a net loss of $591 million, or $1.97 a share, on sales of $8.5 billion, compared to a profit of $460 million, or $1.52 a share, on sales of $9.5 billion in 1991.

The company said its income for the full year was $275 million, prior to the write-down for the coal operation and the adoption of required accounting changes for post-retirement employee benefits and income taxes.

Occidental’s shares ended up 50 cents to $18.50 on the New York Stock Exchange.

Sun Co. posted a gain in earnings for its latest quarter, after a loss a year ago, but reported a huge deficit for all of 1992.

Sun said it earned $37 million in the fourth quarter, contrasted with a year-ago loss of $35 million. It said its results were boosted partly by higher margins from U.S. gasoline sales.

The Philadelphia-based company said the profit was equal to 35 cents a share, contrasted with a loss of 33 cents in the fourth quarter a year ago. The higher profit in the period came despite a drop in sales, to $2.7 billion, from $2.9 billion.

For all of 1992, Sun said it lost $559 million, or $5.26 a share, on sales of $10.7 billion. The red ink followed a loss in 1991 of $387 million, or $3.65 a share, on sales of $11.6 billion.

Sun’s shares were up 37.5 cents to $29 on the NYSE.

Phillips Petroleum Co. posted quarterly net income of $124 million, or 48 cents a share, on revenue of $3.16 billion. That compares to 1991 fourth-quarter results of $79 million, or 30 cents a share, on revenue of $3.37 billion.

The company said fourth-quarter results also reflect a total of $54 million in gains from the sale of assets, foreign currency transactions and drilling tax credits.

In the 12-month period, the Bartlesville, Okla.-based company reported net income of $180 million, or 69 cents a share, versus $258 million, or 99 cents a share, in 1991. Revenue was $12.14 billion and $13.26 billion, respectively.

Phillips Petroleum’s shares ended up 50 cents to $26.50 on the NYSE.