Peter I Bijur News

GulfMark Offshore, Inc. (NYSE:GLF) has announced the election of Steven W. Kohlhagen and Charles K. Valutas to its Board of Directors for terms expiring in June 2014. Steven W. Kohlhagen is a retired financial executive who brings to the Board expertise in financial accounting, finance and risk management through his extensive experience in, and knowledge of, the financial, securities and foreign exchange markets. He has held various positions in the private sector, including investment banking, asset management, and most recently as a consultant with AMETEK, Inc. He currently serves on the Board of Directors, the Business and Risk Committee and the Compensation Committee of Freddie Mac. He also serves on the Boards of Directors for Abtech Holdings, Inc., Reval Inc.

Not only did most oil producing companies post increased income and revenues in the first quarter 2000, compared to 1999, but in some cases, the increases were record-setting. In fact, Conoco's first quarter was the best quarter in the company's 125-year history. Here is a capsulated report of several companies' earnings. USX-Marathon Group's net income adjusted for special items was $199 million in first quarter 2000, compared with a net loss adjusted for special items of $11 million in first quarter 1999. The Marathon Group recorded first quarter 2000 net income of $254 million, which included a $55 million favorable aftertax gain on the sale of its 33.34 percent interest in the Angus/Stellaria development in the Gulf of Mexico. Net income in first quarter 1999 was $119 million.

Low crude oil and natural gas prices from weak demand and oversupply, along with foreign currency losses in Asian downstream operations caused earnings to drop sharply, Texaco Chairman and CEO Peter I. Bijur reported. Commenting on 1998 results, Bijur pointed to the following: Income before special items declined 50 percent in 1998 to $894 million, and declined 80 percent to $92 million in the fourth quarter. Average crude oil prices hit their lowest levels in more than 20 years. Currency volatility in Asia caused fourth quarter foreign currency losses of $71 million in the international downstream operations. "We are not standing still waiting for prices to improve. We are implementing significant cost and expense reductions across all of our businesses.

Texaco Inc. announced a revised 1999 capital and exploratory (capex) plan of $3.7 billion, including subsidiaries and affiliates, down $600 million from its original $4.3 billion plan. Texaco will also accelerate its $650 million cost and expense reduction program announced in December 1998. Commenting on the revised capex plan, Texaco Chairman and CEO Peter I. Bijur stated, "Given this period of low energy prices, our revised spending plan together with our cost and expense reduction program are appropriate actions. We are strategically focusing capital on the key projects that represent optimum long-term growth opportunities, and at the same time continuing our effort to drive down costs. These measures will assist Texaco in weathering this extended period of low prices."

The third quarter proved to be a prosperous one for oil companies, as most of our sampling realized substantial gains in net income and net operating income for the period, as compared to 1998's third quarter. A higher average worldwide crude oil price was chiefly responsible for the increases, although in some cases, cost-cutting measures also contributed heavily to the financial results. Exploration and production net operating income was up, nearly across the board. However, for the first nine months of 1999, earnings and net income are still down from the same period in 1998. Phillips Petroleum Company reported third-quarter net income of $221 million up from $46 million for the same period last year. Total revenues were $3.8 billion, versus $2.9 billion a year ago.

Texaco's capital and exploratory (capex) spending plan for the year 2000 will be $4.7 billion, according to Peter I. Bijur, chairman and CEO. The plan represents a 20 percent increase over estimated 1999 capex spending of $3.9 billion. Bijur said Texaco's capex plan, which includes subsidiaries and affiliates, calls for increased spending on the commercial development of high impact upstream projects in the Philippines, Kazakhstan, West Africa and the North Sea. This plan reflects the company's global strategy of focusing on high return, high margin projects.

Once again, quarter and year-end earnings reported in the offshore market reflected a familiar trend: oil majors saw gains - sometimes significant; while oilfield service companies continued to struggle, compared to the year-earlier marks. Unocal Corporation reported fourth quarter 1999 preliminary unaudited net earnings of $97 million and adjusted net earnings (excluding special items) of $77 million. The fourth quarter results compare with a reported loss of $29 million for the same period a year ago. Adjusted net earnings for the fourth quarter 1998 were $28 million. The fourth quarter earnings reflect higher oil and gas prices, offset partially by lower net oil and gas sales volumes and a higher international tax rate.