Investments in gold and oil production appear to have paid off handsomely for Toronto-based Horsham (TSE). Horsham, which controls American Barrick Resources (TSE), says net earnings in 1989 increased to US$60.2 million or 75cents per share, compared with US$12.6 million or 20cents per share in 1988.
1989 revenues also rose substantially to US$2.1 billion from US$185 million last year.
Horsham also reported third- quarter net earnings of US$27.6 million or 33cents per share on revenues of US$588 million, compared with US$183.1 million or 12cents per share on revenues of US$183.1 million in 1988.
Horsham attributed the improved financial picture to its 22% stake in Barrick and the recent acquisition of Clark Oil & Refining Corp., which benefited from higher capacity utilization rates experienced by the U.S. refining industry last year.
Clark’s operating income for 1989 was up 40% to a record US$125.7 million from US$90.1 million in 1988.
“We believe this trend of improving margins will continue as more stringent environmental specifications should result in reduced refining capacity,” said Ian Delaney, Horsham’s president and chief executive officer. “Moderate increases in demand should also contribute to higher utilization rates.”
On Dec. 31, Horsham says it had US$208.8 million in cash and short-term investments available for future acquisitions. 0500,0211,0307 Horsham (TSE)* Year ended Dec. 3119891988 Revenue (000s)$2,067$185,246 Net earnings (000s)60,22012,571 Net earnings *US dollars. (per share)0.750.20 *US dollars.003
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