Chevron sold Caltex to ‘streamline’; first quarter earnings slashed

California-based Chevron Corp. said May 1 that its first quarter 2015 earnings were US $2.6 billion which compares with $4.5 billion in the same period a year earlier because of weaker oil prices adding that in this scenario it continues to reduce its asset portfolio.

“First quarter earnings declined from a year ago due to sharply lower oil prices, which reduced revenue and earnings in our upstream business,” said Chairman and CEO John Watson.

“In the downstream, we continued to streamline our asset portfolio with the sale of our interest in Caltex Australia Limited,” Watson commented.

“This sale is aligned with our previously-announced asset sales commitment.” Cash proceeds of $3.6 billion were received upon settlement on April 2, and a gain on sale of $1.6 billion will be reflected in second quarter 2015 results, he added.