Chevron 3Q Profit Down $2.5 Billion (USA)

Chevron 3Q Profit Down $2.5 Billion (USA)

California-based supermajor Chevron, today, November 2, reported third quarter 2012 earnings of $5.3 billion, a decrease of $2.5 billion compared to the $7.8 billion earned in the 3Q 2011.

The oil major explained the numbers were lower than the previous year ones because of the decreased oil prices and reduced oil and gas production in several oilfields.

Worldwide net oil-equivalent production was 2.52 million barrels per day in the third quarter 2012, down from 2.60 million barrels per day in the 2011 third quarter.

Chevron’s 3Q production suffered from maintenance-related downtime, normal field declines, continued shut-in of the Frade Field in Brazil, dispositions and storm-related shut-ins in the Gulf of Mexico.

“This quarter’s earnings were solid, but off from their near record level of a year ago,” said Chairman and CEO John Watson. “Foreign currency movements also hurt our results this quarter, while they benefited the year-ago period.”

Watson also provided updates on Chevron’s most important projects, saying that Gorgon LNG project in Australia, and Bigfoot and Jack/St. Malo in U.S. Gulf of Mexico are over fifty per cent complete.

“The Wheatstone Project in Australia is also off to a good start. Each of these projects is expected to deliver significant future value for our shareholders,” Watson concluded.

Offshore Energy Today Staff, November 2, 2012