Chevron Corp. has reported earnings of US$2 billion for 3Q17, up from US$1.3 billion in the corresponding period of last year.
Included in the 3Q17 results was a gain on an asset sale of US$675 million and an asset write-off of US$220 million. Foreign currency effects decreased earnings in the period by US$112 million, compared with an increase of US$72 million a year earlier.
Sales and other operating revenues in 3Q17 stood at US$34 billion, compared to US$29 billion in the same period of 2016.
Chairman and CEO, John Watson, said: “We continue to see improvement in the underlying pattern of earnings and cash flow […] Cash flow is at a positive inflection point, with oil and gas production increasing and capital spending falling […] We’re completing projects that have been under construction and ramping up production, notably at our Gorgon LNG Project in Australia. And our shale and tight rock drilling activity in the Permian Basin is exceeding expectations.”
The company’s downstream operations in the US earned US$640 million in 3Q17, compared with US$523 million a year earlier. The increase in earnings was primarily attributed to higher margins on refined product sales.
Refinery crude oil input during the period decreased 4% from the year-ago period to 931 000 bpd. Refined product sales of 1.23 million bpd decreased 2% from 3Q16. Branded gasoline sales of 540 000 bpd decreased 2% from the 2016 period. Both refinery crude oil input and refined product sales were lower due to divestment of the Hawaii refining and marketing assets in 4Q16.
International downstream operations earned US$1.17 billion in 3Q17, compared with US$542 million IN 3Q16. The increase in earnings was largely due to higher gains on asset sales, primarily from the sale of the company’s Canadian refining and marketing assets. Higher operating expenses and lower margins on refined product sales were partially offsetting. Foreign currency effects had a favourable impact on the company’s earnings of US$19 million between periods.
Refinery crude oil input of 801 000 bpd in 3Q17 increased 11 000 bpd from the year-ago period mainly due to crude unit optimisation and lower maintenance at the company’s affiliate, Singapore Refining Co.
Total refined product sales increased 6% from 3Q16 to 1.55 million bpd in 3Q17, primarily due to higher diesel and jet fuel sales.
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