sg.biz.yahoo.com Saturday February 1, 3:59 AM

CARACAS -(Dow Jones)- Venezuelan steel maker Siderurgica del Orinoco CA, or Sidor, said Friday that it's ready to resume full production as soon as its gas supply is restored from the current 40% of requirements.

The company said in a press release it's currently just operating its hot and cold lamination plants, after an ongoing 61-day-old general strike brought Venezuela's vital oil industry to a near standstill, severely affecting gas production, which is byproduct of crude oil extraction.

Oil output is now back to about a third of roughly 3 million barrels a day before the strike began.

Although many businesses have reopened, opposition leaders have said they won't officially call off the two-month-old strike unless President Hugo Chavez agrees to early elections.

Chavez has said his detractors must avail themselves of constitutionally-approved measures, such as an amendment shortening his term or a possible recall referendum in August, the midpoint of his term.

Chavez's critics blame his left-leaning policies for the country's deepening economic crisis, as the economy likely contracted about 8% last year amid unemployment of 17% and inflation of 31% sparked by the bolivar's devaluation. The currency lost another 25% this year before the government halted sales of foreign exchange Jan. 22 ahead of anticipated measures to stop capital flight and stabilize the bolivar.

Chavez, first elected in 1998 on promises to eradicate corruption and inequality, has blamed the recession on an "economic coup" by his opponents.

Venezuela's government last year capitalized $350 million of a $700 million debt Sidor had with the state-owned Bandes investment bank, raising the country's stake to 42% from 30%.

State-owned until 1998, Sidor is now semiprivate, with the remainder owned by the Amazonia consortium, which is made up of Mexico's Hylsamex SA (HLEFTY), Argentina's Siderar SA (E.SDR), Venezuela's Sivensa (E.SVS),and Brazil's Usiminas SA (E.UUS).

-By Jehan Senaratna, Dow Jones Newswires; 58212 564 1339; jehan.senaratna@dowjones.com

www.bayarea.com Posted on Fri, Jan. 31, 2003

ChevronTexaco Corp. (CVX), the second-largest U.S. oil company, www.chevrontexaco.com, had fourth-quarter profit of $904 million as energy prices rose. Chief Executive David O'Reilly called the results "unsatisfactory" after a refining loss, merger costs and a failed partnership eroded earnings.

Net income was 85 cents a share, the company said in a statement. That compared with a fourth-quarter 2001 loss of $2.52 billion, or $2.38 a share, on asset writedowns and costs from Chevron Corp.'s acquisition 15 months ago of Texaco Inc. Revenue rose 26 percent to $27.1 billion.

ChevronTexaco recorded $160 million in merger expenses and costs tied to its stake in Dynegy Inc., which today restated four years of earnings and reported a loss. ChevronTexaco's $151 million loss in the refining business eroded profit from oil and natural-gas production, which more than doubled. Earnings fell short of analyst expectations.

"It wasn't a very good report at all," said James Halloran, who oversees $24 billion, including nearly 1.3 million ChevronTexaco shares, at National City Wealth Management. "Refining wasn't competitive. Production was down. When do they turn this thing around?"

Profit after one-time costs and gains, including $52 million in expenses related to ChevronTexaco's 27 percent stake in Dynegy, was $1 a share, up from 47 cents a year earlier. Analysts expected per-share profit of $1.28, according to the average estimate in a Thomson First Call poll.

Shares of San Ramon-based ChevronTexaco fell $1, or 1.6 percent, to $63.20 at 1:03 p.m. in New York Stock Exchange composite trading and slid as much as 3.3 percent. The stock has fallen 25 percent in the past year.

Operating profit from exploration and production jumped to $1.23 billion from $544 million a year earlier, the statement said. Cold weather across much of the nation stoked demand for heating fuel and concerns over supply disruptions pushed prices higher.

A national strike in Venezuela choked off shipments from the No. 5 oil-producing country, and the possibility of a U.S.-led attack on Iraq threatened to disrupt supplies from the Middle East, which produces about one-fourth of the world's oil.

Price gains helped make up for a 6 percent decline in fourth-quarter production, to the equivalent of 2.57 million barrels of oil a day.

Equity movers

Concord-based biotechnology firm Cerus Corp. (CERS), www.ceruscorp.com, fell $5.76, or 40 percent, to $8.56 and traded as low as $8.47. Cerus said it will delay the introduction of some of its blood-purifying systems. The company was downgraded by analysts at companies including J.P. Morgan and Merrill Lynch.

Hayward's Impax Laboratories Inc. (IPXL), www.impaxlabs.com, rose 74 cents, or 19 percent, to $4.73 and traded as high as $5.05. The drugmaker received Food and Drug Administration final approval for its generic version of Claritin-D, which it will make for over-the-counter use.

In December, the FDA approved the switch in the drug's status from a prescription drug to an over-the-counter drug.

Under the non-exclusive licensing, contract manufacturing and supply agreement with Schering-Plough and a semi-exclusive development, license and supply germinate with Wyeth's consumer healthcare division, Impax said it will supply both companies for the over-the-counter market.

Wyeth in December said U.S. regulators had approved its rival over-the-counter version of Claritin.

Shipment of the product is expected to commence shortly, Impax said.

Compiled by Ellen Lee from company and wire reports. A new column is posted weekdays at the Business site on www.contracostatimes.com at 12:30 p.m. Got East Bay business news? Reach Lee at 925-952-2614 or at elee@cctimes.com.

www.forbes.com Reuters, 01.31.03, 2:52 PM ET By Pascal Fletcher

CARACAS, Venezuela (Reuters) - A six-nation "group of friends" pressed Venezuelan President Hugo Chavez and his foes Friday to settle their differences through the ballot box as the government said it was restoring vital oil output slashed by an opposition strike.

Envoys from the United States, Brazil, Mexico, Chile, Spain and Portugal talked with Chavez about the political deadlock behind the two-month-old strike, which has pushed the world's No. 5 oil exporter deep into recession.

The deputy foreign ministers from the "group of friends," formed this month to tackle the Venezuelan crisis, were also meeting opposition leaders as part of their mission to help secure a peaceful solution through elections.

The opposition strike has slashed oil production and exports, rattling global energy markets jittery over U.S. preparations for a possible attack on Iraq.

Facing plummeting oil revenues and capital flight that is bleeding foreign reserves, the government prepared emergency financial measures, including heavy budget cuts and foreign exchange controls to be introduced next week.

But the government said Friday it had brought crude oil output back up to 1.5 million barrels per day, almost half of pre-strike levels. Striking oil employees say the output level is lower but acknowledge it has been rising.

Thousands of anti-government protesters marched in Caracas Friday in support of Venezuela's private media, most of which are fiercely critical of Chavez. He accuses them of bias, while they charge him with trying to curb press freedom.

Opponents of Chavez, who was elected in 1998 and still commands significant support among the nation's poor majority, propose a constitutional amendment to trigger an early election. They accuse Chavez of ruling like a dictator and trying to impose Cuba-style communism in the oil-rich nation.

The populist president, who survived a coup in 2002 and whose term ends in early 2007, has condemned the strikers as "coup mongers" and says he will not negotiate with them.

STRIKE SUPPORT CRACKING The slow recovery in the oil industry comes as support for the strike in other sectors is clearly cracking.

Private banks have resumed regular operating hours, most shops have reopened and vehicles and pedestrians have returned to the streets of Caracas, although there are still shortages of gasoline and some food items.

The "friends group" aims to help Organization of American States Secretary-General Cesar Gaviria create a climate of confidence between the government and opposition to hammer out a deal on elections.

"The importance of the group of friends is to act as observers and guarantors," Janet Kelly, a politics professor at Caracas' IESA Business School, told Reuters.

Opposition leaders are demanding that more than 5,000 employees fired from the strike-hit state oil giant PDVSA be restored to their jobs as part of any election deal.

Chavez, who accuses the strikers of "sabotaging" the oil industry after backing a brief military coup against him last year, has so far ruled that out. He has condemned the strikers as "traitors" and said they should be jailed.

PDVSA President Ali Rodriguez said Friday the government could end up firing as many as 6,000 company workers.

Strike leader Carlos Fernandez, who heads the anti-Chavez business federation Fedecamaras, accused the government of trying to squeeze its opponents in the private sector with the currency controls, which will initially involve a single fixed exchange rate, to be adjusted monthly.

"They are going to use these measures as a form of repression," he said, predicting the government would try to stop its business foes from having access to dollars.

triangle.bizjournals.com 17:40 EST Friday 

Research Triangle Park-based Reichhold on Friday announced three organizational changes with the naming of Ashok Mendiratta as vice president of global technology, Eric Carlier as director of technology, Europe and Alberto Piccinotti as director of European sales.

Based at RTP, Mendiratta will have global responsibility for all of Reichhold's technology functions and will report to Senior Vice President Julia Harp. He comes to Reichhold from PolyOne, the $3.5 billion plastics compounder that was formed following the merger of Geon and M.A. Hanna. At PolyOne, Ashok had served as director of corporate business development.

Carlier will replace Raj Patel as Reichhold's director of technology of Europe. Patel will retire March 31 after 35 years of service to Reichhold. Carlier will move into his new job March 24.

Carlier comes to Reichhold from Owens Corning in Belgium, where he served as European research and development director.

Effective Feb. 15, Piccinotti will become director of European sales for Reichhold. Piccinotti has been with Reichhold one year, serving as director of master planning for Europe. Prior to joining Reichhold, Piccinotti was with Owens Corning for more than 15 years.

Also Friday, Reichhold said that a recently announced price increase on its unsaturated polyester resins in North America has been revised to 4 cents per pound instead of the 3 cents per pound increase that was announced earlier in January.

This revised pricing increase is effective for all North American orders placed on or after Feb. 7.

"This upward adjustment of the increase we announced earlier this month is necessary due to the continuing strength in styrene, benzene and natural gas prices," said Reichhold VP Harp. "The uncertainty in oil-producing nations such as Venezuela and in the Middle East is generating increased market volatility and driving an increase in styrene monomer costs."

"The price of natural gas has doubled since March 2002, and crude oil has traded above $ 25 per barrel since March as well, and is currently about $ 30 per barrel. As a result of these significant and continuing conditions, we are required to take this action."

Reichhold is the world's largest manufacturer of unsaturated polyester resins and a leading coating and performance resins for the automotive, appliances, coatings, plastics, textile, construction, transportation, marine and graphic arts markets.

Reichhold has manufacturing operations throughout North America, Latin America and Europe. Founded in 1927, Reichhold is owned by Tokyo-based Dainippon Ink & Chemicals, the world's largest producer of printing inks and polyester resins.

www.townonline.com By Amy Lambiaso / alambias@cnc.com Friday, January 31, 2003

As the country edges closer to a possible war with Iraq, gas prices are edging up on a nearly daily basis. But even more concerning as we face one of the coldest winter's in recent memory is the rapidly rising demand for home heating oil.

Advocates for federal fuel aid are estimating that tens of thousands of Bay State residents are struggling to pay to stay warm as temperatures continue to drop. But with President Bush's announcement last week to release $200 million in federal funds, Massachusetts will see $12.3 million to bring relief to consumers eligible for federal assistance and help warm cold homes. The funding, to be administered by the Department of Health and Human Services is expected to become available in early February.

Lisa Spencer, energy director for the South Shore Community Action Council, the Plymouth-based area energy assistance company for income-eligible households, said calls for assistance had been about even with past years, but have greatly increased during the bitterly cold month of January. Although she didn't have exact numbers from the month yet, Spencer estimated walk-ins needing assistance have almost doubled during the last month.

On top of the great demand for the oil, vendors are saying many people can't even afford what oil is left. Attributing this shortage of money for some families to a lack of planning and frivolous spending, some say there is little they can do to help.

"People don't have the money because they're foolishly spending it elsewhere," said Steve Balboni, of Balboni's Oil in Kingston. "They think the equipment in their homes is going to last forever and they'll never have to worry about it."

Reports say more than 100,000 families in the state have used up federal fuel benefits, and may face the rest of the winter without aid if they are not eligible. An average family of four must have a combined household income of no more than $36,200 to be eligible for the South Shore Community Action's assistance program.

The Low-Income Home Energy Assistance Program helps mainly the poor and elderly in paying heating bills, paying fixed amounts based on house income. Local administering agencies determine household eligibility based on the annual income and the number of home residents and make payments toward the heating bills to the primary source vendor. This year's frigid winter temperatures are being called the coldest on record ever, Balboni said.

Calls to Citizens Energy Corp., the non-profit oil company run by former US Rep. Joseph Kennedy, are up 100 percent over last winter. And while the company still has oil, Kennedy said recently there is "no way" it can meet the demand.

Balboni said he deals with many residents who cannot afford to heat their homes because they have not saved money accordingly throughout the year, or may be on a fixed income as are many elderly residents. But with the current uproar in Venezuela, where a good portion of oil originates, Balboni cannot predict when the stock will replenish itself again.

"It's a supply and demand issue, but there are a lot of variables in play," he said. "The varying market values and international issues always come into play."

Advocates in Boston are calling for charitable donations to help the thousands of families suffering from the cold. Already, State Street Band has donated more than $100,000, while FleetBoston, Global Petroleum, Gillette, TJX and Citizens Financial Group have made donations to the federally funded low income assistance program.

Spencer said approximately 8,300 South Shore homes benefit from the assistance program, a number that may increase if eligible residents come forward now that more funding is available. With prices hitting close to $1.50 per gallon, rising as much as 3 cents a day, even the homes receiving aid will be stretched thin.

But while many oil vendors are hitting high prices, Balboni said he has been able to keep his in tact at $1.37 earlier this week. Markets closer to Boston are reporting higher prices with daily rising margins.

In addition to the South Shore Community Action Council and Citizen's Energy, the local Salvation Army, American Red Cross, churches and senior centers may also be able to provide relief.

Portions of Michael Levenson's State House News Service report were used for this story.

Sidebar, boxed:

Winter Energy-Saving Tips:

• Caulk and weather-strip doors and windows that leak air.
• When the fireplace is not in use, keep the flue damper tightly closed.
• Set your thermostat as low as is comfortable and consider an automatic setback thermostat to save additional money.
• Clean or replace filters on furnaces every other month.
• Make sure that warm air registers, baseboard heaters and radiators are not blocked by furniture, carpeting or drapes.
• Close your curtains and shades at night; open them during the day.
• Have your oil-fired heating system serviced annually and your gas-fired heating system serviced every three years.