Upstream results of Chevron Corporation are projected to be lower between sequential quarters, due to lower average crude oil prices, partially offset by foreign exchange gains.
The firm stated this in its interim update for the second quarter of 2012 just released on its website.
Chevron reported in its interim update that earnings for the second quarter 2012 were expected to be higher than the first quarter 2012, and that downstream earnings in the second quarter were expected to be significantly higher, reflecting improved refining margins and gains on asset sales.
This interim update, the firm noted, contained certain industry and company operating data for the second quarter 2012.
“The production volumes, realisations, margins and certain other items in the report are based on a portion of the quarter and are not necessarily indicative of Chevron’s full quarterly results to be reported on July 27, 2012,” it added.
On its upstream results, the firm said actual realisations might vary from indicative pricing due to quality and location differentials and the effect of pricing lags. International earnings, it pointed, reflected actual lifting, which might differ from production due to the timing of cargoes and other factors.
According to the company, United States net oil-equivalent production increased by 14,000 barrels per day during the first two months of the second quarter, largely reflecting increased production in the Gulf of Mexico.
International net oil-equivalent production during the first two months of the second quarter, it explained, decreased by 30,000 barrels per day, adding that continued shut-in of production at the Frade field in Brazil and planned maintenance in Kazakhstan contributed to the majority of the decline.
“Production ramp-up at Usan in Nigeria partially offset these effects,” the company said.