SAN RAMON, Calif. -- Chevron Corp. has reported earnings of $5.1 billion for fourth-quarter 2011, compared with $5.3 billion in the 2010 fourth quarter. Full-year 2011 earnings were a record $26.9 billion, up 41% from $19 billion earned in 2010.
Sales and other operating revenues in fourth-quarter 2011 were $58 billion, up from $52 billion in the year-ago period, mainly due to higher prices for crude oil and refined products.
"Chevron had an outstanding year financially, with record earnings and cash flow. This reflects our exceptionally strong upstream portfolio, as well as higher 2011 crude prices. Full-year earnings also benefited from improved downstream sales margins," said chairman and CEO John Watson.
"Downstream results decreased $2 billion between [the third and fourth] quarters, resulting from weaker margins, the absence of asset sale gains, lower volumes and an unfavorable swing in foreign exchange effects," Pat Yarrington, vice president and CFO said during the company's earnings call.
U.S. downstream operations reported a loss of $204 million in fourth-quarter 2011, compared with earnings of $475 million a year earlier.
The decline primarily reflected the absence of a $400 million gain on the sale of the company's ownership interest in the Colonial Pipeline Co. recognized in fourth-quarter 2010, and weaker margins on refined product sales, which declined $390 million from the third quarter.
"U.S. downstream earnings decreased $908 million in the fourth quarter [from third-quarter 2011 earnings of $704 million]. Margins dramatically weakened between quarters, lowering earnings by about $400 million. General industry fuel margins fell, contributing about half the decline .... Seasonal declines in base oil and finished lubricant demand also punished fourth-quarter margins," Yarrington added.
Refined product sales of 1.23 million barrels per day were down 69,000 barrels per day from fourth-quarter 2010, mainly due to lower gasoline and residual fuel oil sales. Branded gasoline sales decreased 3% to 515,000 barrels per day due to weaker demand.
U.S. downstream operations reported earnings of $1.5 billion for full-year 2011, compared with earnings of $1.3 billion for full year 2010.
San Ramon, Calif.-based Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels.
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