Chevron 2012 Annual Report Download - page 18
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Please find page 18 of the 2012 Chevron annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Management’s Discussion and Analysis of
Financial Condition and Results of Operations
16 Chevron Corporation 2012 Annual Report
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
2011 from 2010 was primarily due to weaker demand and
previously completed exits from selected eastern U.S. retail
markets.
Refer to the “Selected Operating Data” table on page 18
for a three-year comparison of sales volumes of gasoline and
other rened products and renery input volumes.
International Downstream
Millions of dollars 2012 2011 2010
Earnings* $ 2,251 $ 2,085 $ 1,139
*Includes foreign currency eects: $ (173) $ (65) $ (135)
International downstream earned $2.3 billion in 2012,
compared with $2.1 billion in 2011. Earnings increased due
to a favorable change in eects on derivative instruments of
$190 million and higher margins on rened product sales of
$100 million. Foreign currency eects decreased earnings by
$173 million in 2012, compared with a decrease of $65 mil-
lion a year earlier.
Earnings of $2.1 billion in 2011 increased $946 million
from 2010. Gains on asset sales beneted earnings by
$700 million, primarily from the sale of the Pembroke Ren-
ery and related marketing assets in the United Kingdom
and Ireland. Also contributing to earnings were improved
margins of $200 million and the absence of 2010 charges of
$90 million related to employee reductions. ese benets
were partly oset by an unfavorable change in eects on
derivative instruments of
about $180 million. Foreign
currency eects decreased
earnings by $65 million
in 2011, compared with a
decrease of $135 million in
2010.
Total rened product
sales of 1.55 million barrels
per day in 2012 declined 8
percent, primarily related to
the third quarter 2011 sale of
the company’s rening and
marketing assets in the
United Kingdom and Ire-
land. Excluding the impact
of 2011 asset sales, sales vol-
umes were at between the
comparative periods. Interna-
tional rened product sales
volumes of 1.69 million bar-
rels per day in 2011 were 4
percent lower than in 2010,
primarily due to the sale of
the company’s rening and
marketing assets in the
United Kingdom and Ireland. Excluding the impact of 2011
asset sales, sales volumes were up 3 percent between the com-
parative periods.
Refer to the “Selected Operating Data” table, on page 18,
for a three-year comparison of sales volumes of gasoline and
other rened products and renery input volumes.
All Other
Millions of dollars 2012 2011 2010
Net charges* $ (1,908) $ (1,482) $ (1,131)
*Includes foreign currency eects: $ (6) $ (25) $ 5
All Other includes mining operations, power generation
businesses, worldwide cash management and debt nancing
activities, corporate administrative functions, insurance
operations, real estate activities, energy services, alternative
fuels, and technology companies.
Net charges in 2012 increased $426 million from 2011,
mainly due to higher environmental reserve additions, corpo-
rate tax items and other corporate charges, partially oset by
lower employee compensation and benets expenses.
Net charges in 2011 increased $351 million from 2010,
mainly due to higher expenses for employee compensation
and benets and higher net corporate tax expenses.
0
2250
1800
1350
900
450
International Gasoline &
Other Refined Product
Sales*
Thousands of barrels per day
Sales volumes of refined products
were down 8 percent from 2011
mainly due to the full year impact of
asset sales in the United Kingdom
and Ireland in August 2011.
*Includes equity in affiliates.
Gasoline
Jet Fuel
Gas Oils & Kerosene
Residual Fuel Oil
Other
0908 10 11 12
1,554
Downstream earnings increased
20 percent from 2011 due to higher
margins on the sale of refined
products and higher earnings from
CPChem.
*Includes equity in affiliates.
United States
International
(1.0)
5.0
3.5
0.5
1.5
Worldwide Downstream
Earnings*
Billions of dollars
$4.3
0908 10 11 12
0
1600
1200
800
400
U.S. Gasoline & Other
Refined Product Sales
Thousands of barrels per day
Gasoline
Jet Fuel
Gas Oils & Kerosene
Residual Fuel Oil
Other
Refined product sales volumes
decreased 4 percent from 2011 on
lower sales of gasoline and lower
sales of residual fuel oil.
1, 211
0908 10 11 12