Total Petroleum (North America) announces 1996 results
Total Petroleum (North America) has announced results for the year 1996. For the year ended December 31, 1996, Total Petroleum reported a net loss of $ 5.4 mm. This compares to a net loss of $ 8.6 mm, excluding unusual items, for the year 1995. After including these items, Total Petroleum's 1995 reported results were a net loss of $ 68.6 mm for the full year. These non-cash charges related to the restructuring of the Company's Arkansas City, Kansas refinery and for other environmental charges.
Operations
For the full year 1996, Refining had a slight decline in operating income to $ 8.2 mm compared to $ 9.4 mm in the
prior year. Overall industry refining margin indicators in the Company's markets rebounded in 1996 from the lows
reached in 1995. However, crude oil prices rose significantly, and were extremely volatile, during 1996. The rise in
absolute prices combined with the volatility had the negative effect of increasing the Company's crude oil costs by
22 % compared to 1995. This raw material price increase combined with other cost increases for purchased natural gas
and non-recurring maintenance turnaround expenses, designed to improve reliability, offset the improvement in
industry margins.
For the year 1996, Marketing operating income was $ 34.1 mm. This represented a slight decline from operating income
in 1995 of $ 35.0 mm. Marketing achieved strong gains in both fuel and merchandise sales which were up 7 % and 9 %,
respectively, year over year. A decline in fuel margins compared to the prior year offset these sales gains and
caused the small reduction in operating income. The Company continued to reduce its Corporate overhead expenses and
financial costs during the year. Corporate and other expenses were $ 27.9 mm for 1996 compared to $ 28.8 mm in 1995.
Financial costs declined to $ 26.6 mm in 1996 from $ 29.5 mm in 1995.
Financial Position
Long-term debt stood at $ 428.0 mm at year end 1996 compared to $ 408.6 mm at year end 1995. Consistent with the
Company's goal to minimise increases in long-term debt, management constrained capital spending to about the level of
internal cash flow. The result was only a modest increase in long-term debt.
Total Petroleum is a refiner and marketer of petroleum products with refineries in Colorado, Oklahoma and Michigan and marketing activities in the central United States. Headquartered in Denver, the Company employs approximately 6,400 people. Total Petroleum shares are listed on the American, Toronto, Montreal and Pacific stock exchanges under the symbol TPN. Approximately 55 % of its common shares are owned by Total S.A., a leading international oil and gas company headquartered in France with shares listed on the Paris, London and New York stock exchanges.
