<< Back |
NEW YORK, Jan. 28 /PRNewswire-FirstCall/ -- Amerada Hess Corporation (NYSE: AHC) reported net income of $68 million for the fourth quarter of 2003 compared with a net loss of $371 million for the fourth quarter of 2002. Results for the fourth quarter of 2002 included an after-tax impairment charge of $530 million ($706 million before income taxes). Net income was $643 million for the year 2003 compared with a loss of $218 million in the corresponding period of 2002. The after-tax results by major operating activity in 2003 and 2002 were as follows (in millions, except per share amounts):
Three months ended Year ended December 31 December 31 2003* 2002*(a) 2003* 2002(a) Exploration and production $83 $(375) $414 $(102) Refining and marketing 55 20 327 85 Corporate (29) (7) (101) (63) Interest expense (41) (38) (173) (165) Income (loss) from continuing operations 68 (400) 467 (245) Discontinued operations Net gains from asset sales -- -- 116 -- Income from operations -- 29 53 27 Income from cumulative effect of accounting change -- -- 7 -- Net income (loss) $68 $(371) $643 $(218) Income (loss) per share from continuing operations (diluted) $.71 $(4.52) $5.17 $(2.78) Net income (loss) per share (diluted) $.71 $(4.20) $7.11 $(2.48) * Unaudited. (a) Reclassified to conform with current period presentation.
The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 356,000 barrels per day in the fourth quarter of 2003 compared to 434,000 barrels per day in the fourth quarter of 2002. Approximately seventy percent of the decline in production resulted from asset sales and exchanges in connection with the Corporation's initiatives to reshape its portfolio of producing properties. In the fourth quarter of 2003, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $25.34 per barrel, an increase of $.87 per barrel from the fourth quarter of 2002. The average crude oil selling price for the full year of 2003 was $24.80 per barrel, an increase of $.22 per barrel from 2002. The Corporation's average United States natural gas selling price, including the effect of hedging, was $3.96 per Mcf in the fourth quarter of 2003, a decrease of $.41 per Mcf from the fourth quarter of 2002. The average United States natural gas selling price for the full year of 2003 was $4.02 per Mcf, an increase of $.30 per Mcf from 2002.
Refining and marketing earnings increased in the fourth quarter and the year 2003 compared with the corresponding periods of 2002, reflecting higher refining earnings and increased income from retail gasoline station operations.
The following items, on an after-tax basis, are included in net income in the fourth quarter and year of 2003 and 2002 (in millions):
Three months ended Year ended December 31 December 31 (unaudited) (unaudited) 2003 2002 2003 2002 Premiums on bond repurchases $(19) $(2) $(34) $(6) Accrued severance and London office lease costs (9) -- (32) -- United States income tax benefit -- -- 30 -- Asset impairments -- (530) -- (737) Gains (losses) from asset sales Exploration and production -- 13 31 33 Refining and marketing -- -- (20) 67 Charge for increase in United Kingdom income tax rate -- -- -- (43) Reduction in carrying value of refining and marketing intangible assets and accrued severance -- -- -- (22) $(28) $(519) $(25) $(708)
Capital expenditures for the year 2003 amounted to $1,358 million of which $1,286 million related to exploration and production activities. Capital expenditures for the year 2002 amounted to $1,534 million, including $1,404 million for exploration and production.
Consolidated Financial Information Three months ended Year ended December 31 December 31 2003* 2002* 2003* 2002 (In millions, except per share amounts) Sales and other operating revenues $3,628 $3,207 $14,311 $11,551 Income (loss) from continuing operations $68 $(400) $467 $(245) Discontinued operations Net gains from asset sales -- -- 116 -- Income from operations -- 29 53 27 Cumulative effect of accounting change -- -- 7 -- Net income (loss) $68 $(371) $643 $(218) Income (loss) per share from continuing operations (diluted) $.71 $(4.52) $5.17 $(2.78) Net income (loss) per share (diluted) $.71 $(4.20) $7.11 $(2.48) Weighted average number of shares 89.2 88.4** 90.3 88.2** * Unaudited. ** Represents basic shares.
In the preceding discussion, the financial effects of certain transactions are disclosed on an after-tax basis. Management reviews segment earnings on an after-tax basis and uses after-tax amounts in its review of variances in segment earnings. Management believes that after-tax amounts are a preferable method of explaining variances in earnings, since they show the entire effect of a transaction rather than only the pre-tax amount. After-tax amounts are determined by applying the appropriate income tax rate in each tax jurisdiction to pre-tax amounts.
The following table contains the pre-tax amounts of items included in net income which are shown on an after-tax basis above (in millions):
Three months ended Year ended December 31 December 31 2003 2002 2003 2002 Premiums on bond repurchases $(31) $(5) $(58) $(15) Accrued severance and London office lease costs (15) -- (53) -- Asset impairments -- (706) -- (1,024) Gains (losses) from asset sales Exploration and production -- 13 47 41 Refining and marketing -- -- (9) 102 Reduction in carrying value of refining and marketing intangible assets and accrued severance -- -- -- (35) $(46) $(698) $(73) $(931) AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) Fourth Fourth Third Quarter Quarter Quarter Line 2003 2002(*) 2003 No. (A) (B) (C) Income Statement Revenues and Non- operating Income 1 Sales and other operating revenues $3,628 $3,207 $3,230 Non-operating income (expense) 2 Gain on asset sales -- 13 -- 3 Equity in income of HOVENSA L.L.C. 10 4 43 4 Other (30) 22 23 5 Total revenues and non- operating income 3,608 3,246 3,296 Costs and Expenses 6 Cost of products sold 2,523 2,052 2,194 7 Production expenses 207 214 207 8 Marketing expenses 201 202 171 9 Exploration expenses, including dry holes and lease impairment 116 110 59 10 Other operating expenses 49 43 44 11 General and administrative expenses 87 61 70 12 Interest expense 69 62 73 13 Depreciation, depletion and amortization 254 265 253 14 Asset impairment -- 706 -- 15 Total costs and expenses 3,506 3,715 3,071 16 Income (loss) from continuing operations before income taxes 102 (469) 225 17 Provision (benefit) for income taxes 34 (69) 79 18 Income (loss) from continuing operations 68 (400) 146 Discontinued operations 19 Net gain from asset sales -- -- -- 20 Income from operations -- 29 -- 21 Net income (loss) 68 (371) 146 22 Preferred stock dividends 5 -- -- 23 Net income (loss) applicable to common stockholders $63 $(371) $146 Segment Earnings Analysis 24 Exploration and production $83 $(375) $124 25 Refining and marketing 55 20 89 26 Corporate (29) (7) (25) 27 Interest expense (41) (38) (42) 28 Income (loss) from continuing operations 68 (400) 146 Discontinued operations 29 Net gain from asset sales -- -- -- 30 Income from operations -- 29 -- 31 Net income (loss) $68 $(371) $146 32 Net Cash Provided by Operating Activities (**) $423 $538 $99 Capital Expenditures 33 Exploration and production $328 $303 $298 34 Refining and marketing 14 23 9 35 Total capital expenditures $342 $326 $307 At End of Period 36 Total debt $3,941 $4,992 $4,490 37 Stockholders' equity $5,340 $4,249 $4,714 (*) Reclassified to conform with current period presentation. (**) Includes changes in working capital. AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) Year Line 2003 2002(*) No. Income Statement Revenues and Non- operating Income 1 Sales and other operating revenues $14,311 $11,551 Non-operating income (expense) 2 Gain on asset sales 39 143 3 Equity in income (loss) of HOVENSA L.L.C. 117 (47) 4 Other 13 85 5 Total revenues and non- operating income 14,480 11,732 Costs and Expenses 6 Cost of products sold 9,947 7,226 7 Production expenses 796 736 8 Marketing expenses 709 703 9 Exploration expenses, including dry holes and lease impairment 369 316 10 Other operating expenses 192 165 11 General and administrative expenses 340 253 12 Interest expense 293 256 13 Depreciation, depletion and amortization 1,053 1,118 14 Asset impairment -- 1,024 15 Total costs and expenses 13,699 11,797 16 Income (loss) from continuing operations before income taxes 781 (65) 17 Provision for income taxes 314 180 18 Income (loss) from continuing operations 467 (245) Discontinued operations 19 Net gain from asset sales 116 -- 20 Income from operations 53 27 21 Cumulative effect of change in accounting principle, net 7 -- 22 Net income (loss) 643 (218) 23 Preferred stock dividends 5 -- 24 Net income (loss) applicable to common stockholders $638 $(218) 25 Net Cash Provided by Operating Activities $1,581 $1,965 Capital Expenditures 26 Exploration and production $1,286 $1,404 27 Refining and marketing 72 130 28 Total capital expenditures $1,358 $1,534 December 31 December 31 2003 2002 Balance Sheet Information 29 Current assets $3,186 $2,756 30 Investments 1,095 1,622 31 Property, plant and equipment - net 7,978 7,032 32 Other assets 1,724 1,852 33 Total assets $13,983 $13,262 34 Current portion of long-term debt $73 $16 35 Other current liabilities 2,596 2,537 36 Long-term debt 3,868 4,976 37 Deferred liabilities and credits 2,106 1,484 38 Stockholders' equity excluding other comprehensive loss 5,690 4,503 39 Accumulated other comprehensive loss (350) (254) 40 Total liabilities and stockholders' equity $13,983 $13,262 (*) Reclassified to conform with current period presentation. AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES) Fourth Fourth Third Quarter Quarter Quarter 2003 2002 2003 Line (A) (B) (C) No. Operating Data Net Production Per Day Crude oil - barrels 1 United States 40 48 41 2 United Kingdom 79 110 78 3 Norway 27 25 22 4 Denmark 23 28 24 5 Algeria 19 18 23 6 Equatorial Guinea 18 30 21 7 Gabon 12 9 11 8 Azerbaijan 2 4 2 9 Indonesia 1 3 -- 10 Colombia -- 20 -- 11 Total 221 295 222 Natural gas liquids - barrels 12 United States 10 11 12 13 United Kingdom 7 6 4 14 Norway 1 1 1 15 Indonesia and Thailand 2 2 2 16 Total 20 20 19 Natural gas - mcf 17 United States 213 320 216 18 United Kingdom 339 284 262 19 Norway 28 25 24 20 Denmark 23 39 30 21 Indonesia and Thailand 88 45 59 22 Total 691 713 591 23 Barrels of oil equivalent(*) 356 434 339 Average Selling Price (including hedging) Crude oil - per barrel 24 United States $25.06 $22.78 $24.33 25 Foreign 25.40 24.77 24.72 Natural gas liquids - per barrel 26 United States $24.01 $20.99 $22.00 27 Foreign 24.71 21.80 23.33 Natural gas - per mcf 28 United States $3.96 $4.37 $3.53 29 Foreign 3.74 2.52 2.54 Marketing and Refining - Barrels Per Day 30 Refined products sold 423 402 390 31 Refinery runs (net) 225 196 241 (*) Includes production from properties classified as discontinued operations of 44 thousand barrels of oil equivalent per day in the fourth quarter of 2002. AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES) Year 2003 2002 Line (A) (B) No. Operating Data Net Production Per Day Crude oil - barrels 1 United States 44 54 2 United Kingdom 89 112 3 Norway 24 24 4 Denmark 24 23 5 Algeria 19 15 6 Equatorial Guinea 22 37 7 Gabon 11 9 8 Azerbaijan 2 4 9 Indonesia 1 4 10 Colombia 3 22 11 Total 239 304 Natural gas liquids - barrels 12 United States 11 12 13 United Kingdom 6 6 14 Norway 1 1 15 Indonesia and Thailand 2 2 16 Total 20 21 Natural gas - mcf 17 United States 253 373 18 United Kingdom 312 277 19 Norway 26 25 20 Denmark 29 37 21 Indonesia and Thailand 63 42 22 Total 683 754 23 Barrels of oil equivalent (*) 373 451 Average Selling Price (including hedging) Crude oil - per barrel 24 United States $24.23 $24.04 25 Foreign 24.93 24.69 Natural gas liquids - per barrel 26 United States $23.74 $16.12 27 Foreign 24.09 19.09 Natural gas - per mcf 28 United States $4.02 $3.72 29 Foreign 3.01 2.26 Marketing and Refining - Barrels Per Day 30 Refined products sold 419 383 31 Refinery runs (net) 220 181 (*) Includes production from properties classified as discontinued operations of 13 and 51 thousand barrels of oil equivalent per day in the years of 2003 and 2002, respectively. Contact: Amerada Hess Corporation - J.R. Wilson (212) 536-8940
SOURCE Amerada Hess Corporation
CONTACT: J.R. Wilson of the Amerada Hess Corporation, +1-212-536-8940
(AHC)