Chevron announced earnings of $5.0 billion for the 3rd quarter, down from $5.3 billion in the corresponding reporting period last year. Upstream operations outperformed the company’s refining and marketing business, which was hit by thinner product margins.
“Our third quarter earnings were down from a year ago,” said Chairman and CEO John Watson in a statement, “primarily reflecting lower margins for refined products in the current period.”
The company reported “good progress” on its Gorgon and Wheatstone LNG projects in Australia. 85% of Chevron’s equity LNG offtake from Wheatstone is locked into long-term sales and purchase agreements after signing up major Japanese utility Tohoku Electric Power Company in the 3rd quarter.
Despite reports that Gorgon startup might slip into 2016 from 2015 as currently planned, Joe Geagea, the president of Chevron’s gas business, reportedly said on an analyst call that Gorgon was “moving into a critical phase from a schedule standpoint”, but did not officially alter the start date.
With a price tag of $52 billion, Gorgon is one of the world’s largest gas projects currently under construction. Chevron operates the project with partners ExxonMobil, Shell and a few Japanese utilities that hold small equity positions.
