US Chevron Q3 downstream earnings fall 65% to $689m

02 November 2012 13:43  [Source: ICIS news]

HOUSTON (ICIS)--Chevron’s 2012 third-quarter downstream earnings fell 65% year on year to $689m (€531m), mainly because of lower refined product margins and higher operating expenses in the US, as well as the absence of gains from asset sales, the US-based energy major said on Friday.

Chevron's 2011 third-quarter results had included a $500m gain from the sale of Chevron's Pembroke refinery in the UK to Valero.

Chevron’s US refinery crude oil input was 779,000 bbl/day in third quarter of 2012, down by 118,000 bbl/day from the same period a year ago, primarily because of a fire at the company’s refinery at Richmond, California, in August.

Outside the US, refinery crude oil input was 909,000 bbl/day, up by 27,000 bbl/day compared with the 2011 third quarter, the company said.

Chevron’s downstream results include its 50% stake in the Chevron Phillips Chemical (CP Chem) petrochemicals joint venture, and Chevron’s Oronite lubricants additives business.

Chevron does not report chemical segment earnings separately. However, earlier this week, Chevron’s partner in CP Chem, Phillips 66, reported that its adjusted third-quarter chemical segment earnings rose 42% year on year, mainly because of improved margins and lower utility costs at CP Chem.

Overall, Chevron’s third-quarter earnings were down 33% to $5.25bn.

In addition to the reduced downstream results, the year-on-year decline in overall earnings was due to lower crude oil prices in Chevron's upstream business, as well as planned oil field maintenance, which reduced oil and gas production at several locations, it said.

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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