SAN RAMON, Calif. -- Chevron Corp. has reported net income of $4 billion ($1.80 per share diluted) for first-quarter 2006, compared with net income of $2.7 billion ($1.28 per share diluted) in the year-ago period.
Sales and other operating revenues in first-quarter 2006 were $54 billion, up 32% from the same period in 2005, mainly as a result of higher prices for crude oil, natural gas and refined products and the inclusion of revenues related to the former Unocal operations acquired in August 2005.
Higher earnings in the first [image-nocss] quarter were primarily driven by the performance of our upstream business, said Chairman and CEO Dave O'Reilly. Prices for crude oil and natural gas were strong during the period, and oil-equivalent production increased nearly 10% from a year ago as a result of the Unocal acquisition last August. The former Unocal businesses have been efficiently integrated. We are on target to capture the savings we anticipated from operational synergies, and the economics of the acquisition as currently assessed are even more favorable than initially estimated.
For the company's downstream business, O'Reilly said earnings also increased significantly from last year's first quarter, mainly the result of higher average margins for refined products and an 8% increase in crude-oil inputs to the company's refineries worldwide.
Net income in first-quarter 2006 was reduced by an estimated $300 million due to carryover effects of last season's hurricanes in the Gulf of Mexico. The majority of the profit impact was associated with lower oil and gas production due to damaged infrastructure.
U.S. upstream income of $1.2 billion in the first quarter increased 58% from the 2005 period, primarily due to higher crude oil and natural gas prices and higher production as a result of the Unocal acquisition. Partially offsetting these benefits were higher operating expenses, including costs associated with the repair and restoration of facilities damaged by hurricanes last summer.
U.S. downstream earnings of $210 million increased $152 million from last year's first quarter, mainly as a result of improved refinery utilization and higher refined-product margins.
Sales volumes for refined products increased 5% to 1,534,000 barrels per day in 2006. Branded gasoline sales increased 2% from last year's quarter to 595,000 bpd, mainly reflecting the continued growth of the Texaco brand.
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