Chevron Corporation reported earnings of $3.5 billion ($1.85 per share - diluted) for fourth quarter 2014, compared with $4.9 billion ($2.57 per share - diluted) in the 2013 fourth quarter.
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Foreign currency effects increased earnings in the 2014 quarter by $432 million, compared with an increase of $202 million a year earlier. Full-year 2014 earnings were $19.2 billion ($10.14 per share - diluted) compared with $21.4 billion ($11.09 per share - diluted) in 2013.
Sales and other operating revenues in fourth quarter 2014 were $42 billion, compared to $54 billion in the year-ago period. U.S. upstream earnings of $432 million in fourth quarter 2014 were down $371 million from a year earlier, as higher gains on asset sales and higher crude oil production were more than offset by sharply lower crude oil realizations and higher depreciation expense.
International upstream earnings of $2.24 billion decreased $1.81 billion from fourth quarter 2013. Higher gains on asset sales and lower exploration expenses were more than offset by lower crude oil realizations. Higher depreciation and operating expenses, mainly related to impairments and other asset write-offs, and higher tax items, also contributed to the decrease. Foreign currency effects increased earnings by $453 million in the 2014 quarter, compared with an increase of $300 million a year earlier.
U.S. downstream operations earned $889 million in fourth quarter 2014 compared with earnings of $265 million a year earlier. The increase was mainly due to higher gains on asset sales in fourth quarter 2014 compared to the year-ago period. Higher margins on refined product sales also contributed to the increase.
International downstream operations earned $629 million in fourth quarter 2014 compared with $125 million a year earlier. The increase was mainly due to a favorable change in effects on derivative instruments and higher margins on refined product sales. This increase was partially offset by certain one-time employee benefits expenses in the current period. Foreign currency effects decreased earnings by $21 million in the 2014 quarter, compared with a decrease of $96 million a year earlier.
Chevron announced a $35 billion capital and exploratory investment program for 2015. Included in the 2015 program are $4 billion of planned expenditures by affiliates, which do not require cash outlays by Chevron. The 2015 budget is 13% lower than total investments for 2014. ■