Chevron Q1 chemical profit down 9.3% to $39m

01 May 2009 15:24  [Source: ICIS news]

TORONTO (ICIS news)--Chevron’s chemicals segment has reported a first-quarter profit of $39m (€29m), down 9.3% from $43m a year earlier, the US-based energy major said on Friday.

The results were not directly comparable with last year, as the 2008 first quarter included a $40m charge for environmental remediation costs at a closed plant.

During the quarter, Chevron's Oronite subsidiary saw lower margins on the sale of its lubricants and fuels additives, the company said.

Chevron’s 50%-owned Chevron Phillips Chemical Co – a joint venture with ConocoPhillips – also experienced lower margins on the sale of its commodity chemicals, it added.

Chevron did not disclose first-quarter chemical sales in dollar terms.

Capital expenditure in the chemicals segment was $47m, down from $115m in the 2008 first quarter.

Overall, the California-based energy major reported earnings of $1.84bn, down from $5.17bn in the 2008 first quarter, mainly due to lower prices for crude oil and natural gas.

However, operationally the quarter was “excellent”, with oil production and refinery inputs both higher than a year ago and operating expenses lower, CEO Dave O’Reilly said.

($1 = €0.75)

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By: Stefan Baumgarten
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