Chevron Corporation recently repoorted earnings of $5.4 bilion in the second quarter of 2013, compared with $7.2 billion for the same period last year.Â
“Our second quarter earnings were down from the very strong level of a year ago,” said Chairman and CEO John Watson. “The decreasew as largely due as a result of repair and maintenance activities in our U.S. refineries.”Â
Despite the relatively lower income, the company still plans to go ahead with its major capital projects. “An important milestone was achieved in the second quarter with the loading of the first cargo of liquefied natural gas at the Angola LNG project, one of the largest energy projects on the African continent,” added Watson.Â
The company’s average sales price per barrel of crude oil and natural gas liquids was $92 in the second quarter 2013, down from $97 a year ago. The average sales price of natural gas was $3.78 per thousand cubic feet, compared with $2.17 in last year’s second quarter.
International upstream earnings of $3.87 billion decreased $436 million from the second quarter 2012. The decline between quarters was primarily due to lower volumes and realizations for crude oil, as
well as higher operating expenses, partially offset by lower exploration expenses. Foreign currency effects increased earnings by $275 million in the 2013 quarter, compared with an increase of $219 million a year earlier.
The average sales price for crude oil and natural gas liquids in the 2013 second quarter was $94 per barrel, down from $99 a year earlier. The average price of natural gas was $5.93 per thousand cubic feet, compared with $6.10 in last year’s second quarter.
Net oil-equivalent production of 1.92 million barrels per day in the second quarter 2013 was down 42,000 barrels per day from a year ago.
Production decreased primarily due to normal field declines, partially offset by a project start-up in Angola. The net liquids component of oil-equivalent production decreased 4 percent to 1.26 million barrels per day, while net natural gas production increased 2 percent to 3.99 billion cubic feet per day.
International downstream operations earned $628 million in the second quarter 2013, compared with $1.08 billion a year earlier. Current quarter earnings decreased due to lower gains on asset sales, primarily reflecting the absence of the 2012 sale of GS Caltex’s power operations in South Korea.
An unfavorable change in effects on derivative instruments and lower margins on refined product sales also contributed to the decrease in the 2013 quarter. Foreign currency effects increased earnings by $30 million in the 2013 quarter, compared with a decrease of $22 million a year earlier.
Refinery crude oil input of 872,000 barrels per day was essentially flat with a year ago. Total refined product sales of 1.55 million barrels per day in the 2013 second quarter were down 1 percent from
second quarter 2012.
The company also recently named Joe Naylor as corporate vice president of Strategic Planning, effective immediately.
Naylor succeeds Charles A. Taylor, 55, who was previously appointed managing director for the company’s IndoAsia Business Unit in the international upstream business.
In his new role, Naylor, 52, will oversee the setting of strategic direction for the company, allocating capital and other resources, and determining operating unit performance measures and targets. He will report to Rhonda I. Zygocki, executive vice president, Policy and Planning. Naylor was previously general manager, Upstream Strategy and Planning.
“Joe has a demonstrated record of success in a number of positions across the organization,” said Chairman and Chief Executive Officer John S. Watson. “In this assignment, Joe will play a critical role in establishing the company’s strategic direction as we grow our business and strive to maintain top-tier financial and operating results.”
Naylor has been promoted through positions of increasing responsibility through engineering, strategic planning, marketing, commercial, project and general manager roles in Downstream & Chemicals, Global Gas, Corporate Business Development and Upstream. Naylor began his career with Chevron in 1982 as a process engineer in Richmond, Calif., after graduating from the University of Michigan, Ann Arbor, with a bachelor of science degree in chemical engineering.
