Summary
Chevron Corporation's Q2 2013 results show a notable decrease in net income and earnings per share compared to the same period in the prior year, primarily driven by lower upstream earnings due to reduced crude oil realizations and volumes, and weaker downstream performance characterized by lower refining margins and higher operating expenses. For the first six months of 2013, the trend of declining profitability continued, with net income and EPS significantly lower than the first half of 2012. Despite the earnings decline, the company maintained a strong liquidity position with approximately $22.3 billion in cash, equivalents, time deposits, and marketable securities. Capital expenditures increased significantly, reflecting ongoing investments in major projects like the Kitimat LNG project. Chevron also managed its debt levels, issuing $6 billion in bonds and utilizing its commercial paper program, while continuing its share repurchase program and paying consistent dividends.
Financial Highlights
44 data points| Revenue | $57.37B |
| SG&A Expenses | $1.14B |
| Operating Expenses | $48.78B |
| Net Income | $5.37B |
| EPS (Basic) | $2.80 |
| EPS (Diluted) | $2.77 |
| Shares Outstanding (Basic) | 1.92B |
| Shares Outstanding (Diluted) | 1.94B |
Key Highlights
- 1Net income attributable to Chevron Corporation for Q2 2013 was $5.4 billion, a decrease from $7.2 billion in Q2 2012. Diluted EPS fell to $2.77 from $3.66.
- 2First six months net income was $11.5 billion, down from $13.7 billion in the prior year's comparable period, with diluted EPS at $5.95 versus $6.93.
- 3Upstream earnings declined in both Q2 and the year-to-date period, primarily due to lower crude oil realizations and volumes.
- 4Downstream earnings saw a substantial decrease, particularly in the U.S., driven by lower refined product margins and increased refinery repair and maintenance expenses.
- 5Total debt and capital lease obligations increased to $20.0 billion from $12.2 billion at year-end 2012, including a $6 billion bond issuance.
- 6Capital expenditures increased significantly, reaching $18.3 billion for the first six months of 2013, up from $14.2 billion in the prior year, with a substantial portion allocated to upstream projects.
- 7Chevron continued its share repurchase program, buying back $1.25 billion of common stock in Q2 2013 and a total of $12.5 billion since the program's inception.