Chevron Q2 downstream earnings rise 80% on margins, asset sales

27 July 2012 14:34  [Source: ICIS news]

HOUSTON (ICIS)--Chevron’s second-quarter downstream earnings rose by 80% year on year to $1.88bn (€1.52bn), driven by improved margins and gains from asset sales, the US-based energy and chemicals firm said on Friday.

Chevron said that both US and international downstream margins improved, compared with the same period a year ago.

In addition, downstream earnings benefited from $200m in gains on assets sales, primarily because of a divestment in South Korea.

Chevron’s US refinery crude oil input averaged 928,000 bbl/day in second quarter 2012, up by 53,000 bbl/day from the year-ago period. The company's US refined product sales of 1.27m bbl/day were essentially unchanged from the 2011 second quarter, it said.

Outside the US, Chevron’s refinery crude oil input was 870,000 bbl/day, down by 147,000 bbl/day from second quarter of 2011, mainly because of the sale of Chevron’s Pembroke refinery in the UK to Valero last year.

Chevron’s total refined product sales outside the US were down 14% year on year to 1.57m bbl/day, again mainly because of the sale of the Pembroke refinery and the divestment of the marketing assets in the UK and Ireland, it said.

The company's downstream business includes the company’s 50% stake in the ChevronPhillips Chemical (CP Chem) petrochemicals joint venture. However, Chevron did not disclose its chemical earnings separately.

Chevron’s overall second-quarter earnings from both its downstream and upstream businesses fell to $7.2bn, from $7.7bn in the 2011 second quarter as upstream production volumes and prices were down.

($1 = €0.81)

By: Stefan Baumgarten
+1 713 525 2653

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