Chevron swings to $925m Q4 downstream profit on chems, oil products

01 February 2013 14:37  [Source: ICIS news]

HOUSTON (ICIS)--Chevron's 2012 fourth-quarter downstream earnings rose to $925m (€685m), from a loss of $61m in the same period a year before, on higher chemical segment earnings, improved refined product margins as well as gains on assets sales, the US-based energy major said on Friday.

Chevron said that earnings at its 50%-owned Chevron Phillips Chemical (CP Chem) joint venture with Phillips 66 rose, compared with the 2011 fourth quarter. 

Chevron did did not provide details about the improvement in its fourth-quarter chemical earnings. However, Phillips 66 reported this week that adjusted fourth-quarter earnings in its chemical division rose 66% year on year to $246m.

Chevron said that in addition to higher chemical earnings, downstream earnings benefited from improved margins on refined products and gains on asset sales, primarily reflecting the sale of the fuels marketing businesses in three countries in the Caribbean.

“In the downstream business, we completed a multiyear plan to streamline the asset portfolio,” said CEO John Watson.

In 2012, CP Chem announced the beginning of commercial production at a petrochemical facility in Saudi Arabia, and the initiation of front-end engineering and design for several petrochemical projects on the US Gulf Coast, Watson said.

Meanwhile, Chevron made progress on the construction of new capacity to make premium base oil at its refinery in Pascagoula, Mississippi, he said.

Overall, Chevron reported fourth-quarter earnings of $7.2bn, up from $5.1bn in the same period a year ago, as upstream earnings increased by almost 20% year on year because of higher production volumes and a $1.4bn gain from an asset exchange.

($1 = €0.74)

By: Stefan Baumgarten
+1 713 525 2653

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