Chevron Corporation reported an increase in fourth-quarter net profit as higher oil price and production rose.
The company made a net profit of US$3.7 billion, up from $3.11 billion it made in the same period a year earlier. This also included $2.02 billion in tax benefits from a U.S. tax reform.
The company saw a 12.5-per cent increase in oil and gas production as net output rose to 3.08 million barrels per day. Prices paid for its crude were $59 a barrel in the quarter, up from $57 a year earlier, the company said.
“Financial and operational results were strong in 2018,” said Michael K. Wirth, Chevron’s chairman of the board and chief executive officer. “Earnings and cash flow continued to grow, and we delivered on all of our financial priorities. We increased the dividend, funded an attractive capital program, strengthened the balance sheet and returned surplus cash to our shareholders.”
Chevron in the quarter had an asset write-off totalling $270 million. Foreign currency effects increased earnings in the 2018 fourth quarter by $268 million.
Sales and other operating revenues in fourth quarter 2018 were $40 billion, compared to $36 billion in the year-ago period.
During the quarter, Chevron started up the Wheatstone Train Two, its fifth operated LNG train in Australia, ramped up production in the Permian Basin, started production from the Big Foot Project in the Gulf of Mexico and continued to progress its Future Growth Project at it’s a 50-per cent owned affiliate Tengizchevroil, in Kazakhstan.
The company last week agreed to pay $350 million to buy a refinery in Pasadena, Texas, from Brazilian state oil company Petrobras. The acquisition is intended to process oil flowing from its West Texas shale fields