Horsham (TSE), which controls gold producer American Barrick Resources (TSE), reported sharply reduced earnings during the first three months of 1990. First-quarter earnings before extraordinary items were US$2.5 million or 3 cents per share, compared with US$7 million or 9 cents per share during the same period last year.
Revenues for the three months ended March 31, however, increased to US$615 million from US$399.5 million in the equivalent 1989 period.
Horsham attributed the drop in earnings to a US$2.9-million first- quarter loss reported by refining and marketing subsidiary Clark Oil & Refining Corp., compared with a profit of US$1.8 million in the 1989 quarter.
“The loss was caused by lower refining margins as well as lower production volumes related to the scheduled turnaround of Clark’s Chicago refinery in March,” said chief financial officer Paul Melnuk. “Lower refining margins were principally the result of unusual hedging costs incurred in January on oil heating contracts,” he said.
Affiliate American Barrick contributed US$2.9 million to Horsham’s first-quarter net earnings, up from US$1.2 million in 1989, due to a 26% increase in gold production. Horsham (TSE) $000s except per-share items* Quarter ended Mar. 31 1990 1989 Revenue $615,034 $399,572 Net earnings 2,469 6,997
per share 0.03 0.09 *US dollars
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