clarinews@clarinet.com (01/19/90)
NEW YORK (UPI) -- Texaco Inc., the nation's third-largest oil company, Thursday reported a $9 million drop in 1989 fourth-quarter earnings as a result of environmental expenses and a drop in petrochemical income. The company said it earned $287 million, or 99 cents a share, in the last quarter of 1989 compared with $296 million, or $1.21 a share, in the same period of the porevious year. Texaco said petrochemical earnings for the quarter dropped to $16 million from the previous year's $111 million because of a continued softening in ethylene and propylene prices. It said $355 million, or $1.34 a share, had been set aside for environmental programs and a reduction in value of facilities off the shore of California. Phillips Petroleum Thursday said it was reducing the value of its offshore California fields because environmental objections had delayed production. Texaco said earnings for all of 1989 were $2.4 billion, or $9.12 a share, compared with $1.3 billion, or $5.35 a share, in 1988. The year's earnings benefited $1.5 billion, or $6.02 a share, from a restructuring of the company that included the $1.2 billion sale of Texaco Canada Inc., the company said.