Chevron has announced its third quarter 2016 (3Q16) results with a net income of US$1.3 billion.
Chevron Corporation has reported earnings of US$1.3 billion (US$0.68 per share – diluted) for third quarter 2016 (3Q16), compared with earnings of US$2 billion (US$1.09 per share – diluted) in the third quarter of 2015 (3Q15). Foreign currency effects increased earnings in the 3Q16 by US$72 million, compared with an increase of US$394 million a year earlier.
“Third quarter results, though down from a year ago, reflect an improvement from the first two quarters of this year,” said Chairman and CEO John Watson. “Our operational performance in the third quarter was strong. Our refineries continued to run well and Tengizchevroil completed the largest turnaround in its history ahead of schedule and under budget. We have had steady LNG production and cargo shipments from Gorgon Train 1, and we recently started LNG production from Gorgon Train 2. In light of these milestones, we expect December production between 2.65 - 2.70 million bpd in oil equivalent.”
“We have made progress toward our goals of lowering the cash breakeven in our upstream business and getting cash balanced,” Watson added. “Capital spending and operating and administrative expenses have been reduced by over US$10 billion from the first nine months of 2015 as a result of a series of deliberate actions we have taken.”
The company’s Board of Directors approved a US$0.01 per share increase in the quarterly dividend to US$1.08 per share, payable in December 2016. With this increase, the company has raised the annual dividend payout on its common shares for the 29th consecutive year.
US downstream operations earned US$523 million in 3Q16 compared with earnings of US$1.25 billion a year earlier. The decrease in earnings was primarily due to lower margins on refined product sales and lower earnings from the 50% owned Chevron Phillips Chemical Company LLC.
Refinery crude oil input in 3Q16 increased 3% to 970 000 bpd from the year-ago period. Refined product sales of 1.24 million bpd were essentially unchanged from 3Q15. Branded gasoline sales of 550 000 bpd were up 3% from the 2015 period.
International downstream operations earned US$542 million in 3Q16 compared with US$962 million a year earlier. The decrease in earnings was primarily due to the absence of 3Q15 gains on derivative instruments. Lower margins on refined product sales also contributed to the decline, partially offset by lower operating expenses. Foreign currency effects decreased earnings by US$4 million compared with an increase of US$141 million in last year’s third quarter.
Refinery crude oil input of 790 000 bpd in 3Q16 increased 2% from the year-ago period. Total refined product sales of 1.47 million bpd in 3Q16 were down 2% from the year-ago period due to lower fuel oil and jet fuel sales.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/31102016/chevron-reports-3q16/