press release

ChevronTexaco Reports Second Quarter Net Income of $1.6 Billion

  • Downstream profits of $438 million rebound from $18 million in year-ago quarter
  • Upstream earnings of $1.3 billion reflect continued strong crude oil and natural gas prices
  • Six-month profits up sharply on improved upstream and downstream results

SAN RAMON, Calif., Aug. 1, 2003 -- ChevronTexaco Corp. today reported net income of $1.6 billion ($1.50 per share - diluted) for the second quarter 2003, compared with $407 million ($0.39 per share - diluted) in the year-ago period.

Second quarter 2003 results included net special charges of $117 million ($0.11 per share - diluted), mainly for the write-down of assets in anticipation of their sale. In the 2002 quarter, net charges for special items totaled $826 million ($0.77 per share - diluted).

For the first six months of 2003, net income was $3.5 billion ($3.31 per share - diluted), versus $1.1 billion ($1.07 per share - diluted) in the corresponding 2002 period.

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CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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 execute its recapitalization and restructuring plans; the timing and final terms of an agreement with Dynegy to exchange Series B Preferred Dynegy stock for cash and new Dynegy securities; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected 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 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: August 2003