Chevron's Q3 chems income falls 32%

31 October 2008 15:24  [Source: ICIS news]

HOUSTON (ICIS news)--Chevron Phillips Chemical partner Chevron has posted third-quarter operating income for its chemicals business down 32% year on year at $70m (€54m), a drop attributed to lower sales volumes and higher operating costs, it said on Friday.  

Chevron's refinery business reported a third-quarter operating income of $1bn, from a loss of $110m reported for the same time last year, Chevron said. The increase was due to higher margins and improved operations, it added.

Third-quarter crude input for the company's refinery segment reached 922,000 bbl/day, up by 123,000 bbl/day from the same time last year, it said.

Third-quarter sales volumes of refinery products reached 1.4m bbl/day, down 2% year over year, the company said. Chevron attributed the drop to lower gasoline and fuel-oil sales.

Chevron's exploration and production segment reported a third-quarter operating income of $2.19bn, up from $1.14bn reported for the same time last year. The increase was due to higher prices for crude oil and natural gas.

The increase more than offset lower production and disruptions in the US Gulf region caused by hurricanes Gustav and Ike last month. Chevron took a $400m hit as a result the damage caused to its installations by the hurricanes, the company said.

Worldwide, Chevron's oil production reached 2.44m bbl/day in the third quarter, down from 2.59m bbl/day fro the same time last year. The drop was due to hurricanes and to contractual obligations.

In all, Chevron reported net profits of $7.9bn, up from $3.7bn for the same time last year.

Chevron and ConocoPhillips are equal partners in Chevron Phillips Chemical, a US chemical giant that produces olefins, polyolefins, aromatics and styrenics.

($1 = €0.77)

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By: Al Greenwood
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