Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (12914)	10/21/1998 6:34:00 PM
From: SofaSpud	Respond to of 15196

ENERGY TRUSTS / Enerplus distribution (corrected) /C O R R E C T I O N FROM SOURCE - ENERPLUS RESOURCES FUND/ In c4822 sent at 13:54e Oct. 21, 1998 an error occurred in the second paragraph. ''$0.295 (twenty-nine and one half cents)'' should have read ''$0.435 (forty three and one half cents)''. Corrected copy as follows: Enerplus Resources Fund Monthly Cash Distribution Notice CALGARY, Oct. 20 /CNW/ - Notice is hereby given that a cash distribution at the rate of $0.025 (two and one half cents) per unit will be payable on November 15, 1998, to all Unitholders of record at the close of business on November 1, 1998. The Fund distributed $0.08 (eight cents) for the quarter ending September 30, 1998. The new trailing last twelve month distribution paid totals $0.435 (forty three and one half cents) per Unit. -30- For further information: Christina S. Meeuwsen, Secretary, Enerplus Resources Corporation, as Manager on behalf of Enerplus Resources Fund, (403) 298-2200, Fax: (403) 298-2211

To: Kerm Yerman who wrote (12914)	10/21/1998 6:36:00 PM
From: SofaSpud	Respond to of 15196

EARNINGS / Imperial Oil Q3 results, I Imperial Oil Limited TORONTO, Oct. 21 /CNW/ - Imperial Oil Limited today announced third-quarter net earnings of $196 million, down slightly from $201 million during the third quarter of 1997. Earnings per share were 45 cents during the third quarter of 1998, compared with 44 cents during the same period last year. The company continued its share buyback program, purchasing 2.6 million shares for $64 million during the third quarter. Cash and marketable securities were $580 million at the end of the quarter. Net earnings in the third quarter included a $59-million gain from a tax refund relating to a number of taxation issues pertaining to the company's natural-resource business between 1974 and 1990. Nine-month net earnings were $418 million in 1998, compared with $575 million the previous year. Total revenues were $6,901 million during the nine-month period in 1998, down 15 percent from $8,068 million during the same period last year. The main reason for the reduction in earnings and revenues was a 30-percent decline in crude oil prices from the same period last year. Bob Peterson, chairman, president and chief executive officer, said: ''Imperial's operations continued to perform well, with year-to-date record production at Cold Lake, Syncrude and in chemicals. Unfortunately, that solid operating performance was not enough to offset the continuing weakness in crude oil and product markets.'' Supplementary information Natural resources Net earnings from natural resources were $66 million at the end of nine months in 1998, down from $292 million during the same period last year. The reduction in earnings was attributable to much lower prices for crude oil, which more than offset increased production. Last-year's results included an after-tax gain of $52 million on asset sales, while this year's included a $10-million gain. At Cold Lake, bitumen production reached a record 153,000 barrels a day during the third quarter. Petroleum products Net earnings from petroleum products were $250 million at the end of nine months, unchanged from the same period last year. Industry margins were significantly lower during the latest quarter. Chemicals Net earnings from chemicals were $77 million at the end of nine months, compared with $73 million during the same period in 1997. Results included an after-tax gain of $22 million on the third-quarter sale of the company's Paramins additive business. Excluding that gain, earnings reflected lower industry margins that offset record polyethylene production. Corporate and other Net earnings from corporate and other operations were $25 million during the nine months ended Sept. 30, 1998, compared with negative $40 million at the same time last year. The main reason for the improvement was the tax refund received during the third quarter of this year.

To: Kerm Yerman who wrote (12914)	10/21/1998 6:38:00 PM
From: SofaSpud	Respond to of 15196

EARNINGS / Imperial Oil Q3 results, II << IMPERIAL OIL LIMITED ------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF EARNINGS (unaudited) Nine months Third quarter to September 30 ------------------------------------------------------------------------- millions of dollars 1998 1997 1998 1997 ------------------------------------------------------------------------- REVENUES Operating revenues 2,290 2,668 6,789 7,936 Investment and other income (1) 54 61 112 132 -------------- -------------- TOTAL REVENUES 2,344 2,729 6,901 8,068 -------------- -------------- EXPENSES Exploration 5 11 28 32 Purchases of crude oil and products 931 1,166 2,837 3,518 Operating 637 683 1,898 1,994 Federal excise tax 324 313 896 864 Depreciation and depletion 163 163 482 519 Financing costs (3) 49 42 132 120 -------------- -------------- TOTAL EXPENSES 2,109 2,378 6,273 7,047 -------------- -------------- EARNINGS BEFORE INCOME TAXES 235 351 628 1,021 Income taxes on earnings 98 150 269 446 Income tax refund (2) (59) - (59) - -------------- -------------- TOTAL INCOME TAXES 39 150 210 446 -------------- -------------- NET EARNINGS 196 201 418 575 -------------- -------------- PER-SHARE INFORMATION - dollars (7) Net earnings 0.45 0.44 0.95 1.23 Dividends 0.185 0.183 0.553 0.550 ------------------------------------------------------------------------- Approved by the directors October 21, 1998 Chairman, president and Senior vice-president, chief executive officer finance and administration ------------------------------------------------------------------------- IMPERIAL OIL LIMITED ------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CASH FLOWS Nine months (unaudited) Third quarter to September 30 ------------------------------------------------------------------------- inflow/(outflow) millions of dollars 1998 1997 1998 1997 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net earnings 196 201 418 575 Exploration expenses (a) 5 11 28 32 Depreciation and depletion 163 163 482 519 After tax (gain)/loss from asset sales (23) (28) (41) (52) Deferred income tax and other (22) (4) 18 39 -------------- -------------- Total cash flow from earnings 319 343 905 1,113 Accounts receivable - 47 198 173 Inventories and prepaids (72) (55) (127) (181) Income taxes payable (b) 96 54 (118) (319) Accounts payable and other 52 98 (169) (5) -------------- -------------- Change in operating assets and liabilities 76 144 (216) (332) -------------- -------------- CASH FROM OPERATING ACTIVITIES 395 487 689 781 -------------- -------------- INVESTING ACTIVITIES Capital and exploration expenditures (153) (164) (394) (428) Proceeds from asset sales (1) 37 64 103 204 Proceeds from marketable securities 58 21 79 42 Additions to marketable securities (59) (21) (87) (43) -------------- -------------- CASH FROM (USED IN) INVESTING ACTIVITIES (117) (100) (299) (225) -------------- -------------- CASH FLOW BEFORE FINANCING ACTIVITIES 278 387 390 556 FINANCING ACTIVITIES Repayment of long-term debt - - - (91) Common shares purchased (4) (64) (150) (343) (520) Dividends paid (81) (85) (245) (260) -------------- -------------- CASH FROM (USED IN) FINANCING ACTIVITIES (145) (235) (588) (871) -------------- -------------- INCREASE (DECREASE) IN CASH 133 152 (198) (315) CASH AT BEGINNING OF PERIOD 417 94 748 561 -------------- -------------- CASH AT END OF PERIOD (c) 550 246 550 246 -------------- -------------- >> (a) Exploration expenses, deducted in arriving at net earnings, are reclassified and included in investing activities in the consolidated statement of cash flows. (b) Includes outflows of $223 million in 1997 for taxes due on the interest portion of a 1996 income tax refund. (c) At September 30, 1998, cash was composed of cash in bank of $28 million (1997 -- outstanding cheques, less cash in bank - negative $78 million) and cash equivalents of $522 million (1997 -- $324 million); marketable securities were $30 million (1997 -- $22 million). << IMPERIAL OIL LIMITED ------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET As at As at (unaudited) Sept. 30 Dec. 31 ------------------------------------------------------------------------- millions of dollars 1998 1997 ------------------------------------------------------------------------- ASSETS Cash and marketable securities at cost 580 770 Accounts receivable 892 1,090 Inventories of crude oil and products 530 466 Materials, supplies and prepaid expenses 164 102 Investments and other long-term assets 173 203 Property, plant and equipment 7,031 7,172 Goodwill 247 257 -------------- TOTAL ASSETS (a) 9,617 10,060 -------------- LIABILITIES Current payables and accrued liabilities 1,835 2,158 Long-term debt (5) 1,540 1,506 Other long-term obligations 1,041 1,013 -------------- TOTAL LIABILITIES 4,416 4,677 DEFERRED INCOME TAXES 986 1,000 SHAREHOLDERS' EQUITY 4,215 4,383 -------------- TOTAL LIABILITIES, DEFERRED INCOME TAXES AND SHAREHOLDERS' EQUITY 9,617 10,060 -------------- (a) TOTAL ASSETS BY SEGMENT Natural resources 4,578 4,635 Petroleum products 3,870 4,010 Chemicals 390 425 Corporate and other 956 1,162 Intersegment receivables eliminated in consolidation (177) (172) -------------- Total Assets 9,617 10,060 -------------- IMPERIAL OIL LIMITED ------------------------------------------------------------------------- BUSINESS SEGMENTS Nine months (unaudited) Third quarter to September 30 ------------------------------------------------------------------------- millions of dollars 1998 1997 1998 1997 ------------------------------------------------------------------------- REVENUES Natural resources External 273 322 723 956 Intersegment 247 332 723 1,044 -------------- --------------- Total 520 654 1,446 2,000 -------------- --------------- Petroleum products External 1,835 2,153 5,468 6,355 Intersegment 30 57 112 171 -------------- --------------- Total 1,865 2,210 5,580 6,526 -------------- --------------- Chemicals External 213 245 654 727 Intersegment 1 5 19 32 -------------- --------------- Total 214 250 673 759 -------------- --------------- Corporate and other External 23 9 56 30 Intersegment 2 3 6 7 -------------- --------------- Total 25 12 62 37 -------------- --------------- Total External Revenues (a) 2,344 2,729 6,901 8,068 -------------- --------------- EARNINGS Natural resources 55 98 66 292 Petroleum products 56 94 250 250 Chemicals 36 23 77 73 Corporate and other 49 (14) 25 (40) -------------- --------------- Net earnings 196 201 418 575 -------------- --------------- CASH FLOW FROM EARNINGS Natural resources 135 175 315 572 Petroleum products 97 147 437 454 Chemicals 23 30 77 92 Corporate and other 64 (9) 76 (5) -------------- --------------- Total cash flow from earnings 319 343 905 1,113 -------------- --------------- CAPITAL AND EXPLORATION EXPENDITURES Natural resources 99 105 282 303 Petroleum products 45 48 90 96 Chemicals 5 8 12 21 Corporate and other 4 3 10 8 -------------- --------------- Total capital and exploration expenditures 153 164 394 428 -------------- --------------- (a) Includes export sales to the United States 197 280 625 788 IMPERIAL OIL LIMITED ------------------------------------------------------------------------- OPERATING STATISTICS Nine months (unaudited) Third quarter to September 30 ------------------------------------------------------------------------- 1998 1997 1998 1997 ------------------------------------------------------------------------- GROSS CRUDE OIL PRODUCTION (thousands of barrels a day) Conventional 70 74 70 85 Cold Lake 153 126 138 113 Syncrude 51 58 51 50 -------------- --------------- Total crude oil production 274 258 259 248 Natural gas liquids (NGL's) available for sale 19 19 19 22 -------------- --------------- Total crude oil and NGL production 293 277 278 270 -------------- --------------- NATURAL GAS (millions of cubic feet a day) Production (gross) 426 426 436 466 Production available for sale (gross) 287 257 285 292 Sales 350 344 344 365 AVERAGE PRICES (dollars) Conventional crude oil sales (a barrel) 17.49 23.53 17.77 25.33 Par crude oil price at Edmonton (a barrel) 20.36 26.73 20.88 28.09 Heavy crude oil at Hardisty (Bow River, a barrel) 16.30 20.77 14.46 21.76 Natural gas sales (a thousand cubic feet) 1.86 1.79 1.86 2.08 PETROLEUM PRODUCTS SALES (millions of litres a day) Gasolines 33.0 33.0 30.9 30.8 Heating, diesel and jet fuels 23.7 25.5 24.3 25.7 Heavy fuel oils 7.4 5.2 6.2 5.0 Liquefied petroleum gas, lube oils and other products 14.2 13.7 12.2 11.8 -------------- --------------- Total petroleum products 78.3 77.4 73.6 73.3 -------------- --------------- Total refinery throughput (millions of litres a day) 73.9 73.6 71.3 71.4 Refinery capacity utilization (percent) 95 95 92 92 PETROCHEMICAL SALES (thousands of tonnes a day) 3.4 3.4 3.6 3.5 ------------------------------------------------------------------------- IMPERIAL OIL LIMITED ------------------------------------------------------------------------- SHARE OWNERSHIP, TRADING AND PERFORMANCE Nine months (unaudited) Third quarter to September 30 ------------------------------------------------------------------------- 1998 1997 1998 1997 ------------------------------------------------------------------------- RETURN ON AVERAGE CAPITAL EMPLOYED (a) (rolling 4 quarters, percent) 13.2 14.1 RETURN ON AVERAGE SHAREHOLDER EQUITY (rolling 4 quarters, percent) 16.2 17.3 SHARE OWNERSHIP Outstanding shares (thousands) Monthly weighted average 436,412 457,022 440,601 465,837 At September 30 435,075 453,965 Number of shareholders At September 30 18,380 18,648 SHARE PRICES (dollars) High 27.40 27.10 30.50 27.10 Low 20.80 22.58 20.80 19.87 Close at September 30 23.30 26.53 >> (a) Capital employed is defined as short and long-term debt and shareholders' equity. IMPERIAL OIL LIMITED ------------------------------------------------------------------------- NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) ------------------------------------------------------------------------- 1. Investment and other income ------------------------------------------------------------------------- Third quarter 1998 gains on asset sales were $31 million ($23 million after tax) and include a gain of $30 million ($22 million after tax) on the sale of the Chemicals Paramins business to Exxon Corporation. A valuation by an independent third party confirmed that the selling price represented a fair market value for the Paramins business. Third quarter 1997 gains were $50 million ($28 million after tax). For the nine-month period in 1998, gains were $56 million ($41 million after tax). During the same period in 1997, gains of $97 million ($52 million after tax) were recorded on the sale of assets. 2. Income Tax Refund ------------------------------------------------------------------------- In the third quarter 1998, final settlement was reached with Revenue Canada for a $140 million tax refund including interest, relating to a number of outstanding taxation issues pertaining to the natural resources business for the period 1974 to 1990. A portion of the refund was recognized in earnings in prior years and $59 million was included in third quarter 1998 earnings. Final settlements for related provincial tax refunds remain outstanding. << 3. Financing Costs Nine months Third quarter to September 30 ------------------------------------------------------------------------- (millions of dollars) 1998 1997 1998 1997 ------------------------------------------------------------------------- Debt related interest 33 30 96 90 Other interest 1 6 2 7 -------------- --------------- Total interest expense 34 36 98 97 Foreign exchange expense on long-term debt 15 6 34 23 -------------- --------------- Total financing costs 49 42 132 120 -------------- --------------- >> 4. Share Purchase Programs ------------------------------------------------------------------------- In 1995, 1996 and 1997 the company purchased shares under three 12-month normal course share-purchase programs. Also in 1996, the company undertook an auction tender in which 72 million shares were purchased at a total cost of $1,440 million. On June 19, 1998 another 12-month normal course program was implemented with an allowable purchase of 21.9 million shares (five percent of the total at that date), less any shares purchased by the employee savings plan and company pension funds. The results of these activities are as shown below. << ------------------------------------------------------------------------- millions of Year Shares (a) Dollars ------------------------------------------------------------------------- 1995 and 1996 104.6 2,008 1997 - Third quarter 6.0 150 Full Year 28.9 694 1998 - Third quarter 2.6 64 Year to Date 12.9 343 Cumulative purchases to date 146.4 3,045 >> Exxon Corporation's participation in the above maintained its ownership interest in Imperial at 69.6 percent. The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of retained earnings. (a) Restated to reflect a three-for-one share split - see note 7. << 5. Long-term Debt As at As at Sept. 30 Dec. 31 ------------------------------------------------------------------------- (millions of dollars) 1998 1997 ------------------------------------------------------------------------- Long-term debt (at period-end exchange rates) 1,780 1,677 Foreign-exchange loss on U.S.$ debt (a) (240) (171) ----------------- Long-term debt 1,540 1,506 ----------------- >> (a) The foreign-exchange loss on U.S.-dollar debt is being amortized to earnings over the remaining life of the debt. 6. Year 2000 Uncertainty ------------------------------------------------------------------------- Date-sensitive computer systems, applications and field equipment that use two digits rather than four to identify a year may recognize the year 2000 as 1900 or some other date. Similar problems may arise when certain dates in 1999 are used to represent something other than a date. When information using such dates is processed before, on, or after January 1, 2000, the impact on operations and financial reporting, if not addressed, may range from minor errors to serious disruptions that could affect the company's ability to conduct normal business operations. The company believes that its Year 2000 compliance activities are comprehensive; however, the company cannot be certain that all aspects of the issue, including those related to the efforts of customers, suppliers or other third parties, will be fully resolved. 7. Share Split ------------------------------------------------------------------------- Prior period share prices and number of shares purchased and outstanding, as well as per-share information, have been changed to reflect a three-for-one split of the company's shares during the second quarter of 1998. ------------------------------------------------------------------------- -30- For further information: Investor Relations, Jean Cote, (416) 968-4262; Media Relations, Richard O'Farrell, (416) 968-4875

To: Kerm Yerman who wrote (12914)	10/21/1998 6:40:00 PM
From: SofaSpud	Respond to of 15196

SERVICE SECTOR / Precision Drilling Update Precision Drilling Corporation - Utilization Update CALGARY, Oct. 21 /CNW/ - Precision Drilling Corporation (the ''Corporation'') is presenting at ''The Canadian Oilfield Services Conference'' to be held in San Francisco, California on October 22 and 23, 1998. It is anticipated that recent trends in the oil and gas services industry will be discussed. The Corporation is of the view that it is appropriate to advise all its shareholders and the market generally of the highly competitive oilfield industry conditions which will result in continued lower than expected utilization rates and declining day-rates on drilling rigs and other related oilfield services. Due to the oil industry market conditions, exploration and development expenditures have decreased significantly which has translated into utilization rates for drilling and other related oilfield services to be between 30% and 35% lower than expected. This will likely result in a corresponding decrease in consensus revenues and earnings for Precision's second quarter. The information above includes forward looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 and are based upon certain assumptions made by Precision in light of their experience, general economic and business conditions and numerous other factors including expected future developments many of which are beyond the control of Precision. As a result of these factors, Precision's actual results may differ materially from those indicated in or applied by such forward looking statements. Precision Drilling Corporation is listed on The Toronto Stock Exchange under the ticker symbol PD and on the New York Stock Exchange under the ticker symbol PDS. -30- For further information: Dale E. Tremblay, Senior Vice President Finance and Chief Financial officer, (403) 716-4500, Fax: (403) 264-0251; website: www.precisiondrilling.com

To: Kerm Yerman who wrote (12914)	10/21/1998 6:42:00 PM
From: SofaSpud	Read Replies (11) \| Respond to of 15196

CORP. / Harbour brings lawsuit Harbour Petroleum Commences Legal Action CALGARY, ALBERTA--Harbour Petroleum Company Limited announces today that it has commenced an action against TransCanada Energy Ltd. ("TransCanada") for breach of contract, breach of confidentiality and breach of the duty of good faith and fair dealing. This action is the result of TransCanada bringing an ex-parte application before a Registrar in Bankruptcy in Calgary and obtaining an Order appointing an Interim Receiver to oversee Harbour's transactions and operations and also filing a Petition for receiving order on October 13, 1998. On October 16, 1998, Harbour filed a motion to set aside the appointment of the Interim Receiver and filed an Objection to the Petition for receiving order, for hearing on October 20, 1998. The Registrar in Bankruptcy adjourned the matter to December 14, 1998, for hearing before a Justice of the Court of Queen's Bench (Alberta). Harbour's action claims damages of $380,000.00 for amounts owed under the contract to it, special damages in an amount to be determined, punitive damages of $1,000,000.00 and general damages of $1,000,000.00 for loss of corporate opportunity, loss of reputation and loss of business opportunity as a consequence of the actions taken by TransCanada. Harbour intends to carry on in the ordinary course of business pending the hearing on December 14, 1998. Commenting on the actions of TransCanada, Robert G. Atkinson, President of Harbour stated "These actions will prevent Harbour from pursuing a number of specific transactions to enhance shareholder value and protect the interest of all parties. TransCanada has followed a course of action, which was high-handed and premature, particularly when Harbour was dealing in good faith with TransCanada Energy to settle the contract dispute". Harbour Petroleum Company Limited has 27,882,847 outstanding common shares and is listed on The Toronto Stock Exchange - symbol HRP. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Harbour Petroleum Company Limited Robert G. Atkinson (604) 688-3410 or Harbour Petroleum Company Limited Ronald A. Howard (403) 265-5522 The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.