Posted on: Saturday, January 29, 2005
Chevron profit $3.4B for fourth quarter
By Michael Liedtke
Associated Press
SAN RAMON, Calif. — ChevronTexaco Corp.'s fourth-quarter profit doubled, continuing the most successful run in the oil giant's 125-year history.
The earnings boom has been the bane of many motorists grappling with rising fuel bills because of the higher oil prices that have fueled ChevronTexaco's recent prosperity.
The company said yesterday that it earned $3.4 billion, or $1.63 per share, during the final three months of last year. That compared to net income of $1.7 billion, or 82 cents per share, during the same period in 2003.
Revenue for the quarter totaled $42.7 billion, a 41 percent increase from $30.3 billion in the previous year.
The fourth-quarter results included a $146 million windfall from the sale of some assets. The one-time gains increased ChevronTexaco's earnings by 7 cents per share.
Even without that added boost, ChevronTexaco's earnings easily exceeded the mean estimate of $1.40 per share among analysts surveyed by Thomson First Call.
The performance apparently wasn't enough to impress investors. ChevronTexaco's shares dropped 34 cents to close at $53.72 trading yesterday on the New York Stock Exchange.
ChevronTexaco, which owns one of the two refining operations in Hawai'i, is enjoying a long stretch of robust financial gains that has validated a blockbuster deal completed in 2001 when Chevron bought Texaco Inc. for $39 billion. The marriage got off to a rocky start, but has since evolved into a highly profitable combination.
For the entire year, ChevronTexaco earned $13.3 billion, or $6.28 per share, on revenue of $155.3 billion.
The company has never had a more profitable year since its inception in 1879.
In 2003, ChevronTexaco earned $7.2 billion, or $3.48 per share, on revenue of $121.3 billion.
The high-octane earnings have invigorated ChevronTexaco's stock, which surged 22 percent last year.
ChevronTexaco says that during the past five years, it has delivered an annual shareholder return of 7.4 percent — a figure that includes dividend payments.
Like the rest of its industry, ChevronTexaco has been cashing in on soaring crude oil prices that pushed gasoline prices to record highs, unadjusted for inflation.
ChevronTexaco has been particularly well-positioned to capitalize on the situation because it's a market leader in California, where gasoline prices climbed far above the national average.
