Chevron Net Declines 9% in Second Quarter
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Chevron said Thursday that its second-quarter earnings fell 9% to $347 million from the same period of 1984.
The San Francisco-based oil company said its earnings were affected by losses in minerals and chemicals, profits in inventory drawdown and a gain from a fuel oil contract settlement with Southern California Edison.
The company said its refining and marketing operations showed a strong recovery, posting earnings of $166 million in the second quarter, compared to a $10-million loss a year before. The company is considering the sale of its refining and marketing assets in the Northeast.
But Chevron’s exploration and production earnings dropped 25% to $373 million in the second quarter from $505 million a year ago. The company said the decline was due to lower oil and gas sales as well as foreign exchange losses. The second quarter includes a foreign exchange loss of $5 million, compared to a gain of $40 million in 1984.
Chevron said quarterly revenue fell to $11.7 billion from $12.5 billion.
Chevron said asset write-offs in the second quarter totaled $106 million, including $28 million on its Shale Semiworks plant in Salt Lake City that it closed in May after completing tests of its shale oil technology. The write-offs also include Chevron’s $78-million share of a second-quarter write-off by Amax, mostly of mineral interests and processing facilities. Chevron owns 22% of Amax.
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