Horsham profitable after quarter loss despite oil, gold markets

Despite extreme volatility in the oil markets, weak gold prices and a US$4.2-million fourth-quarter loss, Toronto-based Horsham (TSE) had another profitable year. Horsham, which controls gold producer American Barrick Resources (TSE), reported net earnings of US$58.2 million or 66 cents per share on revenues of US$2.8 billion for the year ended Dec. 31. That compares with net earnings of US$60.1 million or 71 cents a share on revenues of US$2.1 billion in the same period last year.

According to Horsham, 1990 results include net charges of US$8.8 million before tax, while the previous year’s earnings include a dilution gain of US$14.8 million relating to Horsham’s interest in Barrick.

Excluding these factors, net earnings would have increased by 14% to US$51.7 million or 58 cents a share from US$45.4 million or 54 cents a share in 1989, the company says.

In the three months ended Dec. 31, Horsham reported a net loss of US$4.2 million or 4 cents a share on revenues of US$843 million, compared with a profit of US$27.4 million or 31 cents a share on revenues of US$583.3 million in the equivalent period last year. Horsham attributes the 1990 fourth-quarter loss to a onetime charge against expenses of US$26.7 million.

Because of higher refining margins and reduced interest costs, Horsham’s 60% owned subsidiary Clark Oil & Refining earned US$94.5 million before tax and other non-recurring charges in 1990 compared with US$81 million in 1989.

American Barrick’s earnings were up 73% from 1989 levels to US$58.2 million as a result of a 27% increase in gold production. Horsham (TSE) 3 months ended Dec. 31 1990 1989 Revenue $843,362 $583,331 Net earnings (loss) (4,167) 27,426 per share (0.04) 0.31 12 months ended Dec. 31 Revenue $2,787,804 $2,065,977 Net earnings 58,157 60,058 per share 0.66 0.71