Sales and other operating revenues in the third-quarter 2008 were $76 billion, compared with $54 billion a year ago. For the first nine months of 2008, sales and other operating revenues were $222 billion, versus $154 [image-nocss] billion in the corresponding 2007 period.
"Earnings for our upstream operations benefited from prices for crude oil that were significantly higher than in last year's third quarter," said Chairman and CEO Dave O'Reilly. "This improvement in earnings was tempered, however, by effects of the September hurricanes in the Gulf of Mexico."
O'Reilly said facilities shut in due to the hurricanes caused a decline of approximately 150,000 barrels of oil-equivalent production per day in September. In addition, hurricane-related expenses in the third quarter reduced upstream income by about $400 million. This expense impact was nearly offset, however, by gains on upstream asset sales in the period.
"Earnings for our downstream operations also increased from a year ago, due mainly to improved margins on the sale of refined products," O'Reilly added. "Margins were weak in last year's third quarter, and our downstream business in the United States operated at a loss for that period."
U.S. downstream earned $1 billion in the third-quarter 2008, compared with a loss of $110 million a year earlier. The recovery in earnings was mainly the result of significantly higher margins on the sale of refined products and improved refinery operations.
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