Chevron 2013 Annual Report Download - page 18

Management’s Discussion and Analysis of
Financial Condition and Results of Operations
16 Chevron Corporation 2013 Annual Report
Rened product sales of 1.18 million barrels per day
in 2013 declined 2 percent, mainly reecting lower gas oil,
kerosene and gasoline sales. Sales volumes of rened products
were 1.21 million barrels per day in 2012, a decrease of 4 per-
cent from 2011, mainly reecting lower gasoline and fuel oil
sales. U.S. branded gasoline sales of 517,000 barrels per day in
2013 were essentially unchanged from 2012 and 2011.
Refer to the “Selected Operating Data” table on page 18
for a three-year comparison of sales volumes of gasoline and
other rened products and renery input volumes.
International Downstream
Millions of dollars 2013 2012 2011
Earnings* $ 1,450 $ 2,251 $ 2,085
*Includes foreign currency eects: $ (76) $ (173) $ (65)
International downstream earned $1.5 billion in 2013,
compared with $2.3 billion in 2012. Earnings decreased
due to lower gains on asset sales of $540 million and higher
income tax expenses of $110 million. Foreign currency eects
decreased earnings by $76 million in 2013, compared to
$173 million a year earlier.
International downstream earned $2.3 billion in 2012,
compared with $2.1 billion in 2011. Earnings increased due
to a favorable change in eects on derivative instruments of
$190 million and higher margins on rened product sales of
$100 million. Foreign cur-
rency eects decreased
earnings by $173 million in
2012, compared with a
decrease of $65 million a
year earlier.
Total rened product
sales of 1.53 million barrels
per day in 2013 declined
2 percent from 2012, mainly
reecting lower fuel oil and
gasoline sales. Sales of
1.55 million barrels per day
in 2012 declined 8 percent
from 2011, primarily related
to the third quarter 2011 sale
of the company’s rening
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.
Refer to the “Selected
Operating Data” table, on
page 18 for a three-year
comparison of sales volumes of gasoline and other rened
products and renery input volumes.
All Other
Millions of dollars 2013 2012 2011
Net charges* $ (1,623) $ (1,908) $ (1,482)
*Includes foreign currency eects: $ (9) $ (6) $ (25)
All Other includes mining operations, power and energy
services, worldwide cash management and debt nancing
activities, corporate administrative functions, insurance
operations, real estate activities, alternative fuels, and tech-
nology companies.
Net charges in 2013 decreased $285 million from 2012,
mainly due to lower corporate tax items and other corporate
charges.
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 oset by
lower employee compensation and benets 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 2 percent from 2012
mainly due to lower fuel oil and
gasoline sales.
*Includes equity in affiliates.
Gasoline
Jet Fuel
Gas Oils & Kerosene
Residual Fuel Oil
Other
1009 11 12 13
1,529
Downstream earnings decreased
in 2013 due to lower U.S. margins,
higher operating expenses and
lower gains on assets sales.
*Includes equity in affiliates.
United States
International
(1.0)
5.0
3.5
0.5
2.0
Worldwide Downstream
Earnings*
Billions of dollars
$2.2
1009 11 12 13
0
160 0
120 0
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 2 percent from 2012
mainly reflecting lower gas oil,
kerosene and gasoline sales.
1,18 2
1009 11 12 13