SAN RAMON, Calif. -- Chevron Corp. has reported quarterly net income of $4.1 billion ($1.86 per share diluted) in fourth-quarter 2005, compared with $3.4 billion ($1.63 per share diluted) in the year-ago period. Earnings in the 2004 period included a special-item gain of $146 million (six cents per share) related to asset sales.
For full-year 2005, net income was $14.1 billion ($6.54 per share diluted). Earnings in 2004 were $13.3 billion ($6.28 per share diluted), which included net special-item gains of $1.2 billion (54 cents per share) relating primarily [image-nocss] to the disposition of nonstrategic upstream properties.
Sales and other operating revenues in the fourth quarter were $53 billion, up from $42 billion a year earlier. For full-year 2005, revenues were $194 billion, compared with $151 billion in 2004. The increase in both comparative periods was due mainly to higher prices for crude oil, natural gas and refined products, as well as the inclusion of revenues related to former-Unocal operations for the last five months of 2005.
Our strong performance in the fourth quarter capped a second consecutive year of record earnings for our company, said Chairman and CEO Dave O'Reilly. We achieved these results despite an estimated $1.4 billion negative impact on profits in the second half of the year, the consequence of disruptions caused by third-quarter hurricanes in the Gulf of Mexico. About half of this adverse effect on earnings related to the fourth quarter.
O'Reilly said the hurricane effects included a reduction in crude oil and natural gas production, costs for repairs and maintenance of both offshore and onshore facilities, asset writeoffs and expenses for other uninsured storm-related items.
U.S. exploration and production income of $1.2 billion in the fourth quarter increased 28% from the 2004 period. The 2004 results included special-item gains of $87 million relating to property sales. The increase in earnings between periods was attributable mainly to higher prices for crude oil and natural gas and results from the former Unocal operations. Partially offsetting these benefits were higher operating expenses for the heritage-Chevron properties, including costs associated with the restoration of facilities that were damaged by the hurricanes.
U.S. refining, marketing and transportation earnings of $385 million were little-changed from the 2004 quarter. Average margins for refined products were up from the year-ago period, but the benefits were largely offset by refinery downtime and the effects of the hurricanes.
Despite higher refinery input in fourth-quarter 2005, the downtime during the period resulted in lower production of higher-valued refined products than in the 2004 quarter and dampened earnings.
Sales volumes for refined products decreased 1% to 1.443 million barrels per day in the 2005 quarter, as certain sales were affected by supply constraints following the hurricanes.
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