press release

ChevronTexaco Reports Record Quarterly Net Income of $2.6 Billion

  • Income from continuing operations up 22 percent from year-ago quarter
  • Profit increase driven by improved performance in refining, marketing and transportation business
  • Exploration and production segment earns $2 billion on continued strong prices for crude oil and natural gas
  • Progress reported in areas of long-term strategic focus

SAN RAMON, Calif., Apr. 30, 2004 -- ChevronTexaco Corp. today reported record net income of $2.6 billion ($2.40 per share - diluted) for the first quarter 2004, compared with net income of $1.9 billion ($1.81 per share - diluted) in the year-ago period. A major contributor to the earnings increase was improved performance by the company's downstream operations.

First quarter 2004 results included income of $34 million ($0.03 per share - diluted) associated with certain assets that were classified as discontinued operations because of their pending disposition. The income for these assets in the year-ago quarter was $37 million ($0.03 per share - diluted). The 2003 quarter also included net charges of $196 million ($0.18 per share - diluted) relating to the adoption of new accounting standards.

Special charges of $55 million and $39 million were included in the 2004 and 2003 quarters, respectively. Foreign currency effects reduced earnings $43 million and $45 million in the corresponding periods, respectively.

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This press release of ChevronTexaco Corporation contains forward-looking statements relating to ChevronTexaco's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this earnings release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the factors that could cause actual results to differ materially are crude oil and natural gas prices; refining margins and marketing margins; chemicals prices and competitive conditions affecting supply and demand for aromatics, olefins and additives products; actions of competitors; the competitiveness of alternate energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; Dynegy's ability to successfully complete its recapitalization and restructuring plans; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected net production from existing and future oil and gas development projects; potential delays in the development, construction or start-up of planned projects; potential disruption or interruption of the company's net production or manufacturing facilities due to war, accidents, political events or severe weather; potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental regulations (including, particularly, regulations and litigation dealing with gasoline composition and characteristics); potential liability resulting from pending or future litigation; the company's ability to successfully implement the restructuring of its worldwide downstream organization and other business units; the company's ability to sell or dispose of assets or operations as expected; and the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

Updated: April 2004