Chevron warns of weakening downstream results
Chevron expects 2011 fourth-quarter downstream earnings to be down significantly from the third quarter amid lower margins and refinery input volumes, the US-based refiner said on Thursday.
Downstream earnings should be near breakeven for the quarter, Chevron said, due to lower margins and input volumes as well as the absence of an asset sale gain.
In the US, Gulf coast refining margins fell substantially in the fourth quarter compared to the third quarter, the company said.
During the first two months of the fourth quarter, US refinery crude-input volumes decreased by 180,000 bpd, largely reflecting a major turnaround at the Richmond, California refinery, officials said.
Outside the US, refining and marketing margins fell in the fourth quarter relative to the third quarter.
In addition, daily refinery crude-input volumes were down 90,000 bpd for the first two months of the fourth quarter, primarily reflecting the sale of the Pembroke UK refinery completed early in the third quarter.
Chevron’s downstream segment also includes its 50% stake in the Chevron Phillips Chemical joint venture, which it shares with ConocoPhillips.
Further details, including industry benchmark indicators for refining and marketing margins, can be accessed in Chevron’s interim report by clicking here.
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