Chevron: Production Drops, Earnings Rise (USA)

Chevron Corporation today reported earnings of $6.5 billion for the first quarter 2012, compared with $6.2 billion in the 2011 first quarter. Sales and other operating revenues in the first quarter 2012 were $59 billion, compared to $58 billion in the year-ago period.

“In the first quarter, we continued to post strong earnings and healthy cash flows,” said Chairman and CEO John Watson. “This has enabled us to both reward our shareholders with a substantial dividend increase, our third in just over a year, and to reinvest in profitable growth projects to help meet rising global energy demand. Our key development projects remain on track to deliver compelling volume growth over the next five years.”

Watson continued, “New production is coming on as planned, and we continue to see strong customer interest in our Australia LNG projects that underpin our future growth.”

Production Down

Worldwide net oil-equivalent production was 2.63 million barrels per day in the first quarter 2012, down from 2.76 million barrels per day in the 2011 first quarter. Production increases from project ramp-ups in Thailand and the United States  were more than offset by normal field declines, maintenance- related downtime and dispositions.

U.S. upstream earnings were $1.53 billion, which is an $80 million increase when compared to the same period in 2011. International Upstream earnings of $4.64 billion increased $114 million from the first quarter 2011.

International upstream earnings between quarters were increased due to higher realizations for crude oil and natural gas. This benefit was partly offset by higher tax expenses, lower volumes, and higher operating and exploration expenses.

[mappress]
Offshore Energy Today Staff, April 27, 2012