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Chevron quarterly profit up year-on-year on refining despite upstream slump

03rd November 2014

Chevron has posted USD 5.6bn-worth of earnings for the third quarter of this year, up USD 600m from last years third quarter earnings of USD 5.0bn – the supermajor being kept buoyant by strong downstream activity and asset sales despite a slowdown in upstream revenue and a slump in oil prices

Chevron quarterly profit up year-on-year despite upstream slump
“New production was recently achieved at the Bibiyana Expansion Project in Bangladesh"

Upstream revenue has declined for the supermajor as compared to last year but a rise in downstream profit and a boost from asset sales mean that overall performance has grown. Through July, August and September this year, Chevron had made USD 4.65bn dollars upstream compared to USD 5.02bn during the same period last year. But during the same period this year the company had brought in around USD 1.39bn-worth of revenue from its downstream business, compared to last year’s USD 380bn.

“Despite a decline in crude oil prices, our third quarter earnings were higher than a year ago,” said chairman and CEO John Watson.

“Overall downstream results improved, reflecting the benefits of lower feedstock costs and better refinery reliability, particularly in the US. We also concluded certain asset sales as part of our announced, three-year divestment programme.

“Cash generation in the quarter was solid, and our financial strength enables us to both reward our investors through distributions and fund value-adding projects.”

“We continue to make good progress on our key development projects,” Watson added. “New production was recently achieved at the Bibiyana Expansion Project in Bangladesh. The Tubular Bells and Jack/St. Malo projects in the deepwater Gulf of Mexico are expected to start up during the fourth quarter and important construction milestones continue to be reached on our Gorgon and Wheatstone LNG projects in Australia. In addition, we continue to make steady progress on the development and ramp-up of production from our shale and tight resources, particularly in the Permian. These and other major capital projects are expected to deliver significant growth in production, earnings and cash flows in the years ahead.”

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