Chevron chopped on price, production drop

by on July 27, 2012 12:43 pm BST

The Frade oil spill and subsequent shut-in off Brazil as well as normal field declines were behind some of the production slip.

Weaker realised oil and gas prices also did damage with revenues well down on a year ago.

Net profit for the three months to the end of June was $7.23 billion as againnst $7.76 billion in the comparable period a year earlier.

Revenues sank from $66.67 billion to $59.78 billion as production fell from an average of 2.69 million barrels of oil equivalent per day to 2.62 MMboepd.

Upstream earnings were chopped by $632 million to $1.32 billion.

“The decline between quarters was primarily
due to lower realisations and volumes for crude oil, as well as higher
exploration expense, partially offset by higher realisations for natural
gas,” Chevron wrote on Friday.

“Foreign currency effects increased earnings by $219 million in the
2012 quarter, compared with an increase of $26 million a year earlier.

“Production increases from project ramp-ups in Thailand and Nigeria were
more than offset by normal field declines, the shut-in of the Frade
Field in Brazil and maintenance-related downtime.”

Brazilian authorities this week said Chevron was to blame for the oil spill at Frade.

More to follow…