Company News

Chevron Downstream Earnings Up on Improved Margins

U.S. downstream operations earned $349 million in third-quarter 2010, up $222 million
SAN RAMON, Calif. -- Chevron Corp. has reported earnings of $3.77 billion ($1.87 per share diluted) for third-quarter 2010, compared with $3.83 billion ($1.92 per share diluted) in the 2009 third quarter. For the first nine months of 2010, earnings were $13.73 billion ($6.84 per share diluted), up from $7.41 billion ($3.71 per share diluted) in the first nine months of 2009. Sales and other operating revenues in third-quarter 2010 were $48 billion, up from $45 billion in the year-ago period mainly due to higher prices for crude oil, natural gas and refined products.

"Earnings [image-nocss] for the quarter were essentially flat with a year ago, but up sharply for nine months. Operationally, we continue to show gains in upstream production and progress on our downstream restructuring," said chairman and CEO John Watson.

Total quarterly upstream earnings of $3.56 billion decreased $172 million from $3.74 billion a year earlier. Total nine-month upstream earnings of $12.83 billion increased $6.06 billion from $6.77 billion a year earlier.

Total quarterly downstream earnings of $565 million increased $303 million from $262 million a year earlier on improved margins. Total nine-month downstream earnings of $1.74 billion increased $590 million from $1.15 billion a year earlier.

U.S. downstream operations earned $349 million in third-quarter 2010, up $222 million compared with $127 million a year earlier. The increase was mainly due to improved margins on refined products. U.S. downstream operations earned $864 million in nine-month 2010, up $652 million compared with $212 million a year earlier.

Refined product sales of 1.34 million barrels per day were down 73,000 barrels per day from third-quarter 2009, mainly due to lower gasoline and jet fuel sales. Branded gasoline sales decreased 8% to 575,000 bpd, primarily due to previously announced exits from selected eastern U.S. retail markets.

San Ramon, Calif.-based Chevron is one of the world's leading integrated energy companies. It explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; 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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