ChevronTexaco second quarter net income at $407 million, down 81%

Steve Sutherlin, PNA managing editor

ChevronTexaco Corp. net income declined 81 percent to $407 million or 39 cents per share for second quarter 2002, versus $2.108 billion or $1.99 per share for the same period in 2001, the company said July 30.

A number of factors precipitated the slide, the company said, including lower natural gas and crude oil prices, lower refined product margins, a $531 million write-down of an investment in Dynegy Inc., environmental mediation and litigation expenses of $122 million, and foreign currency losses of $141 million.

Merger related expenses reduced earnings $73 million, but the company said it expects merger synergies to deliver savings of $2.2 billion annually by early 2003.

Second quarter 2002 revenues and other income were $25.3 billion, compared with $29.7 billion in the period in 2001.

Net oil-equivalent production declined 3 percent from last year’s second quarter, from 1.080 million barrels per day to 1.044 million bpd.