Chevron profits down

Allen Baker

ChevronTexaco Corp. says earnings from the former operations of Chevron Corp. totaled $1.17 billion in the third quarter, down 24 percent from the $1.53 billion Chevron made in the third quarter of 2000.

Profits were also down from the $1.32 billion the company made in the second quarter. The newly created ChevronTexaco, based in San Francisco, reported separate earnings for the Chevron and Texaco units for the quarter.

“Weakened demand in the world economies, even before the tragedies of Sept. 11, pushed oil and gas prices significantly lower than the year-ago quarter,’’ ChevronTexaco Chairman and CEO Dave O'Reilly said. “These lower prices worldwide were the main reason for a 39 percent decline in earnings from our exploration and producing operations.”

Profits were up for refining and marketing on higher margins, though.

Revenues totaled $11.9 billion for the quarter, down 12 percent from the $13.6 billion in the 2000 third quarter. Some of that decrease was attributable to the formation in July 2000 of the Chevron Phillips Chemical Co., which removed chemical revenues from the total. Lower prices also cut revenues.

U.S. exploration and production operating earnings of $281 million declined 51 percent in the 2001 third quarter. That came as average natural gas realization dropped to $2.76 per thousand cubic feet from $4.42 in the year-ago period.

The average crude oil price of $23.22 a barrel declined 18 percent.

Third quarter natural gas production averaged 1.444 billion cubic feet per day, down 11 percent from the 2000 period. Net liquids production was down 3 percent to 309,000 barrels per day.