Posted on: Saturday, May 1, 2004

ChevronTexaco profits surge 33 percent

By Michael Liedtke
Associated Press

SAN RAMON, Calif. — Driven by soaring gasoline prices, ChevronTexaco Corp.'s first-quarter earnings climbed 33 percent, continuing the oil giant's recent run of gushing profits.

The San Ramon-based company said yesterday that it earned $2.56 billion, or $2.40 per share, in the three months ended March, up from $1.92 billion, or $1.81 per share, at the same time last year.

This year's results outstripped the mean estimate of $2.02 per share among analysts surveyed by Thomson First Call.

First-quarter revenue totaled $33.6 billion, up 9 percent from $30.8 billion last year.

With the fast start, ChevronTexaco is well on its way to improving on its performance in 2003 when the company earned $7.2 billion — more than it did in the previous two years combined.

Investors were pleased. ChevronTexaco's shares gained $1.15 to $91.50 during yesterday's trading on the New York Stock Exchange. The company's stock is up by nearly 40 percent since the end of 2002.

Encouraged by its success, ChevronTexaco recently announced plans to buy back $5 billion of its own stock, a move designed to boost its future earnings per share.

The rising profits of ChevronTexaco and other major oil companies have squeezed the budget of many motorists faced with gas prices that have soared above $2.50 per gallon in some parts of the country, including ChevronTexaco's home turf in California.

ChevronTexaco credited higher gas prices for a big chunk of its first-quarter earnings gains. The U.S. division responsible for oil refining and gasoline sales recorded a first-quarter profit of $276 million, nearly quadrupling from $70 million at the same time last year.