Chevron Reports Second Quarter Net Income of $5.7 Billion
Chevron Corporation (NYSE: CVX) today reported earnings of $5.7 billion ($2.98 per share – diluted) for second quarter 2014, compared with $5.4 billion ($2.77 per share – diluted) in the 2013 second quarter. Foreign currency effects decreased earnings in the 2014 quarter by $232 million, compared with an increase of $302 million a year earlier.
Sales and other operating revenues in second quarter 2014 were $56 billion, compared to $55 billion in the year-ago period.
“Our second quarter earnings and cash flow were solid,” said Chairman and CEO John Watson. “Current quarter earnings reflected stronger market conditions for crude oil, although some of these benefits were offset by lower production volumes as a result of planned maintenance activity at
Tengizchevroil in Kazakhstan. Gains on asset sales also contributed to our results, as we completed important sales under our three-year divestment program.” Watson added, “We continue to make significant progress on our major capital projects which are expected to underpin a 20 percent increase in production by 2017 and enable significant growth in our cash flows. In the deepwater Gulf of Mexico, our production is expected to benefit in the near-term from start-up of the Jack/St. Malo Project later this year and the Big Foot Project in 2015. In Australia, our Gorgon and Wheatstone LNG projects continue to reach important interim milestones. Gorgon remains on track for expected start-up in mid-2015. We are also advancing the development of our liquids-rich,unconventional properties in the United States, Canada and Argentina.”
Recent upstream highlights include:
Australia – All Gorgon Train 1 and common modules required for first LNG have been delivered and installed on Barrow Island.
Australia – The first deliveries arrived at the Wheatstone Project’s Materials Offloading Facility. Preparations continue for arrival of the first Train 1 process modules anticipated later this year.
Chad/Cameroon – Completed the sale of the company’s nonoperated interest in a producing concession in Chad and the related export pipeline interests in Chad and Cameroon for approximately $1.3 billion.
Nigeria – Achieved initial production of product at the Escravos Gas-to-Liquids facility.
United States – Offshore hookup and commissioning is underway at the Jack/St. Malo Project, which remains on track for expected start-up in fourth quarter 2014.
United States – The production platform has been installed offshore at the nonoperated Tubular Bells development, and start-up is expected in third quarter 2014.
“We also completed work on several important downstream growth investments,” said Watson. The company started commercial production at its new premium lubricants base oil facility in Pascagoula, Mississippi, and completed the expansion of its Singapore additives plant.
Chevron Phillips Chemical Company LLC, the company’s 50 percent-owned affiliate, achieved start-up of the world’s largest on-purpose 1-hexene plant, with a capacity of 250,000 metric tons per year, at its Cedar Bayou complex in Baytown, Texas.
The company purchased $1.25 billion of its common stock in the second quarter 2014 under its share repurchase program.