ChevronTexaco today said quarterly profit rose 33 per cent on higher energy prices and refining margins, even as oil and gas production dropped.
The San Ramon, California, company reported first-quarter net income of $2.56 billion, or $2.40 a share, up from net $1.92 billion, or $1.81, a year earlier. The stock jumped 1.5 per cent in early trading.
Excluding one-items and discontinued operations, operating earnings rose 22 per cent to $2.53 billion, or $2.37 a share.
Quarterly sales and other revenue rose 9 per cent to $33.57 billion as energy and product prices remained surprisingly strong. Still worldwide production fell 2 per cent to 2.46 million barrels a day, reflecting the impact of property sales in the past year and declining output from older fields.
As a result, exploration and production income was little changed at $1.95 billion.
But earnings from "downstream" refining and marketing activities more than doubled to $640 million on increased demand, wider margins and greater use of refining capacity.
Chemicals earnings jumped to $74 million from $3 million last year on improved margins for commodity chemicals and lubricant additives. The company owns half of the Chevron Phillips Chemical joint venture with ConocoPhillips.