U.S. oil giant Chevron more than doubled its earnings during the second quarter of 2018 compared to the same period last year boosted by higher crude prices.
Chevron on Friday reported earnings of $3.4 billion for second quarter 2018, compared with $1.5 billion in the second quarter of 2017.
Included in the current quarter was a receivable write-down of $270 million charged to operating expense. Foreign currency effects increased earnings in the 2018 second quarter by $265 million, compared with an increase of $3 million a year earlier. Sales and other operating revenues in second quarter 2018 were $40 billion, compared to $33 billion in the year-ago period.
“Second quarter earnings were up significantly from a year ago,” said Chairman and CEO Michael Wirth.
“Results in 2018 benefited from higher crude oil prices, strong operations and higher production.”
Chevron’s worldwide net oil-equivalent production was 2.83 million barrels per day in second quarter 2018, compared with 2.78 million barrels per day from a year ago. Growth from project start-ups and ramp-ups was partially offset by asset sales and production entitlement effects.
U.S. upstream operations earned $838 million in second quarter 2018, compared with a loss of $102 million from a year earlier. The improvement reflected higher realizations, lower impairment charges and higher crude oil production, partially offset by lower gains on asset sales.
The company’s average sales price per barrel of crude oil and natural gas liquids was $59 in second quarter 2018, up from $41 a year earlier. The average sales price of natural gas was $1.61 per thousand cubic feet in second quarter 2018, compared with $2.32 in last year’s second quarter.
Capital and exploratory expenditures in the first six months of 2018 were $9.2 billion, compared with $8.9 billion in the corresponding 2017 period.
Offshore Energy Today Staff