Sign in Subscribe
Natural gas

Chevron Reports 18% Increase in First Quarter Net Income, Despite Special Charges

Strategic Insights

— 1 min read

Chevron Corporation reported first quarter net income of $459 million, a significant 18 percent increase from $388 million in the first quarter of 1994. Chairman and CEO Ken Derr attributed the strong performance to strong earnings in major business segments, including chemicals and international upstream operations, despite a net loss in U.S. refining and marketing operations due to weak industry margins and refinery downtime. Special charges totaling $63 million increased 1995 reported earnings but reduced 1994 earnings by $36 million. Excluding special items, 1995 first quarter results were 7 percent lower than comparably adjusted 1994 earnings.

Key Takeaways:

  • Chevron's first quarter net income increased 18 percent from $388 million in 1994 to $459 million in 1995, with special charges playing a significant role in the earnings.
  • The company reported strong earnings in chemicals and international upstream operations, with chemicals posting record quarterly earnings of $163 million and international upstream net earnings increasing to $172 million from $111 million in the prior year first quarter.
  • U.S. refining and marketing operations suffered a net loss of $102 million, primarily due to weak industry margins and refinery downtime that required costly third-party product purchases.
  • Total revenues for the quarter were $9.0 billion, up 9 percent from $8.3 billion in the first quarter of 1994.
  • Capital and exploratory expenditures decreased to $987 million in the first quarter of 1995 from $1.059 billion in the first quarter of 1994.

Statistics:

  • First quarter net income: $459 million (1995) vs. $388 million (1994)
  • Special charges: $63 million (1995) vs. $36 million (1994)
  • Total revenues: $9.0 billion (1995 first quarter) vs. $8.3 billion (1994 first quarter)
  • Capital and exploratory expenditures: $987 million (1995) vs. $1.059 billion (1994)
  • Exploration and production net earnings: $150 million (1995) vs. $124 million (1994)
  • International refining and marketing net earnings: $156 million (1995) vs. $63 million (1994)
  • Chemicals earnings: $163 million (1995) vs. $26 million (1994)

Sources:

  • Chevron Corporation press release, April 25, 1995
  • Chevron Corporation (NYSE: CHV) Quarterly Report, April 25, 1995
  • San Francisco Chronicle, April 26, 1995

Read more