Chevron profit climbs to $2 billion

Oil major Chevron has joined its industry peers ExxonMobil and Total in recording a profit increase for the third quarter 2017 when compared to the prior-year period. 

Namely, Chevron on Friday reported earnings of $2 billion for the third quarter 2017, compared with $1.3 billion earnings in the third quarter of 2016.

Included in the quarter was a gain on an asset sale of $675 million and an asset write-off of $220 million. Foreign currency effects decreased earnings in the 2017 third quarter by $112 million, compared with an increase of $72 million a year earlier.

Sales and other operating revenues in the third quarter 2017 were $34 billion, compared to $29 billion in the year-ago period.

“We continue to see improvement in the underlying pattern of earnings and cash flow,” said Chevron Chairman and CEO John Watson, who will be replaced at the beginning of February 2018 by Michael K. Wirth.

“Cash flow is at a positive inflection point, with oil and gas production increasing and capital spending falling,” Watson added. “We’re completing projects that have been under construction and ramping up production, notably at our Gorgon LNG Project in Australia. And our shale and tight rock drilling activity in the Permian Basin is exceeding expectations.”

“We expect this pattern to continue,” Watson commented. “Earlier this month, we announced first LNG production from our Wheatstone LNG development in Australia.”

Chevron’s worldwide net oil-equivalent production was 2.72 million barrels per day in third quarter 2017, compared with 2.51 million barrels per day from a year ago.

The company’s average sales price per barrel of crude oil and natural gas liquids was $42 in third quarter 2017, up from $37 a year earlier. The average sales price of natural gas was $1.80 per thousand cubic feet in third quarter 2017, compared with $1.89 in last year’s third quarter.

Net oil-equivalent production of 681,000 barrels per day in third quarter 2017 was down 17,000 barrels per day from a year earlier. Production increases from shale and tight properties in the Permian Basin in Texas and New Mexico, and base business in the Gulf of Mexico, were more than offset by the impact of asset sales of 67,000 barrels per day, and normal field declines.

The net liquids component of oil-equivalent production in third quarter 2017 increased 1 percent to 525,000 barrels per day, while net natural gas production decreased 13 percent to 932 million cubic feet per day primarily as a result of asset sales.

Offshore Energy Today Staff

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Posted on October 27, 2017 with tags , .

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