Crude oil production increases from projects in Nigeria, United States and Thailand have boosted Chevron Corporation's earnings as the company reported a net income of $7.2 billion for the second quarter 2012, compared with $7.7 billion in the second quarter of 2011.
In the second quarter financial results released during the weekend, Chevron however reported that its net oil-equivalent production of 1.97 million barrels per day in the second quarter 2012 was 35,000 barrels per day lower than the figures a year ago.
The company attributed the shortfall to normal field declines, the shut-in of the Frade Field in Brazil and maintenance-related downtime, which offset production increases from project ramp-ups in Thailand and Nigeria.
Sales and other operating revenues in the second quarter 2012 were $60 billion, compared to $67 billion in the year-ago period.
Chevron's Chairman and Chief Executive Officer, Mr. John Watson, said the company's second quarter earnings and cash flow were among its strongest ever, even with softer oil markets.
"Despite current weakness in the global economy, we continue to invest in our long-term growth projects to help deliver affordable energy to meet future demand. We took several important steps to advance our major upstream capital projects, in particular achieving milestones in our natural gas development projects in the Asia-Pacific region. We also expanded our global exploration resource acreage, including new leases in the Gulf of Mexico where we already hold a significant position," he said.
Worldwide, the company reported net oil-equivalent production of 2.62 million barrels per day in the second quarter 2012, down from 2.69 million barrels per day in the second quarter of 2011.
"Production increases from project ramp-ups in Thailand, the United States and Nigeria were more than offset by normal field declines, the shut-in of the Frade Field in Brazil, maintenance-related downtime and dispositions," said the company.
The company's average sales price per barrel of crude oil and natural gas liquids was $97 in the second quarter 2012, down from $104 a year ago.
The average sales price of natural gas was $2.17 per thousand cubic feet, compared with $4.35 in last year's second quarter.