USA: Chevron Profit Plunges to USD 5.3 Billion

Chevron Corporation today reported earnings of $5.3 billion for the third quarter 2012, compared with $7.8 billion in the 2011 third quarter.

Sales and other operating revenues in the third quarter 2012 were $56 billion, compared to $61 billion in the year-ago period.

“This quarter’s earnings were solid, but off from their near record level of a year ago,” said Chairman and CEO John Watson.

“Crude oil prices were down and we had a heavy period of planned oil field maintenance which temporarily reduced oil and gas production in several locations. Foreign currency movements also hurt our results this quarter, while they benefited the year-ago period.”

“We continue to progress our upstream projects,” Watson added.

“Gorgon in Australia and Bigfoot and Jack/St. Malo in the deepwater Gulf of Mexico are all over 50 percent 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.”

Additional upstream milestones in recent months include:

• Australia – Completed the acquisition of additional interest in the Clio and Acme fields in the Carnarvon Basin in exchange for Chevron’s interest in the Browse development. Consolidating interests in the Carnarvon Basin fits strategically with long-term plans to grow the Wheatstone area resource base, and create expansion opportunities for the Wheatstone Project.

• Australia – Completed the sale of an equity interest in the Wheatstone Project to Tokyo Electric.

• Australia – Announced two natural gas discoveries, Satyr-2 and Satyr-4, in the Carnarvon Basin in 50 percent-owned Block WA-374-P.

• Sierra Leone – Awarded a 55 percent interest and operatorship in two deepwater exploration blocks.

• United States – Announced an agreement to acquire additional acreage in New Mexico. The acreage is located in the Delaware Basin where the company is already one of the largest leaseholders.

“In the downstream, we continue to reposition the business toward high growth chemical and specialty products and to sell non-core assets,” Watson said.

The company’s 50 percent-owned Chevron Phillips Chemical Company LLC (CPChem) announced that its 35 percent-owned Saudi Polymers Company began commercial production at its petrochemical project in Al Jubail, Saudi Arabia.

Also in the third quarter, the company completed the sale of its idled Perth Amboy, New Jersey, refinery, which had been operating as a terminal, and two of its fuels marketing businesses in the Caribbean.

Watson noted that, while investing for long-term production growth, the company remained focused on providing near-term shareholder returns as well. The company purchased $1.25 billion of its common stock in the third quarter 2012 under its share repurchase program.

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LNG World News Staff, November 2, 2012