Chevron Corporation has reported earnings of US$ 4.5 billion for the first quarter of 2014 (Q1 2014), compared with US$ 6.2 billion for the first quarter of 2013. Sales and other operating revenue were US$ 51 billion, compared to US$ 54 billion for the first quarter of last year (Q1 2013).
Chairman and CEO John Watson commented: “Our first quarter earnings were down from a year ago, primarily due to lower prices and volumes for crude oil. Crude prices were tempered by global economic factors, while our current year production volumes were affected by weather-related, unplanned downtime, particularly in Kazakhstan.
US downstream operations earned US$ 422 million in the first quarter of 2014, compared with US$ 135 million for Q1 2013. This increase was due largely to higher margins on refined product sales and a gain on the sale of an interest in a pipeline affiliate. Other contributing factors include lower operating expenses, in part due to lower planned turnaround activity.
A refinery crude input rate of 872 000 bpd in the first quarter 2014 represented an increase of 296 000 bpd on year ago figures. According to Chevron, the increase is due primarily to the absence of effects of an August 2012 incident at the Richmond refinery in California that shut down the crude unit. The absence of Q1 2013 planned turnaround activities at the refinery in Pascagoula, Mississippi, also contributed to the rise.
Refined product sales equaled 1.2 million bpd for Q1 2014, up 100 000 bpd on last year. This increase is a reflection of higher gas oil and kerosene sales. Branded gasoline sales increased 1% to 505 000 bpd.
International downstream operations earned US$ 288 million in Q1 2014, compared with US$ 566 million in Q1 2013. The decrease was largely caused by lower margins of refined product sales. Foreign currency effects decreased earnings by US$ 28 million in the 2014 period, compared to an increase of US$ 76 million for 2013.
Refinery crude input of 774 000 bpd in the first quarter of 2014 represents a decreased of 44 000 from Q1 2013 figures. This mainly results from planned downtime at the Star Petroleum Refining Company in Thailand.
Total refined product sales were down 46 000 bpd from last year, due primarily to lower fuel oil sales.
Adapted from a press release by Emma McAleavey.
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