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Diamond Shamrock Inc's earnings forecast is rising while other independent oil refineries' outlook may be declining for similar reasons, according to Bernard Picchi of Kidder, Peabody. Diamond's growth will be helped by service station and refinery closures in the 1990s, and possibly by acquiring assets left over from these companies. Diamond's earnings are expected to be $1.50 per share in 1993, up from 98 cents per share in 1992. Other refineries, such as Sun Co, Valero Energy and Coastal are expected to report lowered earnings.

Sun Co reported unexpectedly strong results for the 3rd qtr, 1994. Confounding the negative expectations of securities industry analysts, Sun reported earnings of $55 million, including $16 million from its exploration and production operation, $9 million from its lubricants operation and $10 million from its chemicals operation. Other oil companies reporting 3rd qtr earnings included Total Petroleum North American with a net income of $15.2 million and Valero Energy Corp with net income of $12.5 million.

Independent energy producers Apache Corp, Diamond Shamrock Inc and Total Petroleum (North America) Inc had better 1st qtr financial reports in 1993 than they did in 1992. Apache made almost three times the net income it made the year before, with $11.6 million in earnings in 1st qtr 1993 compared to $4 million in earnings in 1st qtr 1992. Diamond Shamrock had $4.3 million in earnings in 1st qtr 1993 compared to $28.5 million in losses in 1st qtr 1992. Finally, Total Petroleum lowered its loss figures to $5.3 million in 1st qtr 1993 compared to $17.4 million in 1st qtr 1992. Higher natural gas prices and stronger downstream sector economics aided the firms.