Chevron Profit Rises on Refining Margins

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Chevron Profit Rises on Refining Margins

SAN RAMON, Calif. -- Chevron Corp. saw a 24-percent increase in its second-quarter profit, due to robust refining margins and a gain on the sale of its interest in electricity-producer Dynegy Inc., the Wall Street Journal reported.

Net income totaled $5.38 billion for the quarter, compared with $4.35 billion a year earlier. Revenue also climbed 4.8 percent to $56.09 billion, the report stated.

The company was helped, in part, by a $680 million gain from selling its stake in Dynegy in May, which offset a $160 million loss related to the early redemption of Texaco Capital Inc. bonds and an increase in environmental remediation expenses for closed or sold Texaco and Unocal sites.

In keeping with several large oil companies' earnings released last week, Chevron's worldwide production was down 1 percent from the year-earlier period.

Earnings from downstream operations, including refining and marketing, came in at $1.3 billion, up 30 percent from a year earlier, the report stated. U.S. downstream earnings reached $781 million from $554 million, helped by improved refining margins, which partially offset increased environmental remediation costs.