Chevron continues layoffs in refining operation
Chevron Corp. has shed 600 positions as of June 30 in its downstream, or refining and marketing, operations under a restructuring it implemented last year.
About 1,000 employees were eligible for severance payments under the program, Chevron said in a quarterly filing with the Securities and Exchange Commission. Most of the positions the company eliminated were outside the United States.
At the end of 2007, the San Ramon company had about 65,000 employees, including about 6,000 service station employees; about 48 percent are U.S. employees.
The restructuring has cost the company $36 million to date.
Chevron's refining operations posted a second-quarter net loss of $734 million, compared with net income of $1.3 billion last year. That loss was offset by outsized profits in Chevron's upstream, or exploration and production, operations. On Aug. 1, Chevron reported net income of $6 billion, or $2.90 a share, on revenue of $81 billion.
That compared with earnings of $5.4 billion, or $2.52 a share, in the year-ago period, on revenue of $54 billion.
Separately, Chevron said in its quarterly report with the SEC that it does believe it can estimate what would be a "reasonably possible loss (or a range of loss)" in a high-profile civil case pending in Ecuador alleging severe environmental damage.
In April, a court-appointed engineer issued a report to the court recommending the court assess up to $16.3 billion in damages on Chevron.
Chevron has fiercely defended itself in the case, which stems from the years its Texaco subsidiary operated in the Ecaudorian rainforest in a joint venture with Ecaudor's state-owned oil company.
Chevron asserts that the Ecuadorian government released it of all liability after Chevron paid $40 million to clean up certain oil-drilling sites.
Chevron said in its SEC filing it intends to move to strike the report and continue to vigorously defend "any attempted imposition of liability." It said it believes the report is defective, and as a result is not useful in calculating any possible loss stemming from the case.
About 1,000 employees were eligible for severance payments under the program, Chevron said in a quarterly filing with the Securities and Exchange Commission. Most of the positions the company eliminated were outside the United States.
At the end of 2007, the San Ramon company had about 65,000 employees, including about 6,000 service station employees; about 48 percent are U.S. employees.
The restructuring has cost the company $36 million to date.
Chevron's refining operations posted a second-quarter net loss of $734 million, compared with net income of $1.3 billion last year. That loss was offset by outsized profits in Chevron's upstream, or exploration and production, operations. On Aug. 1, Chevron reported net income of $6 billion, or $2.90 a share, on revenue of $81 billion.
That compared with earnings of $5.4 billion, or $2.52 a share, in the year-ago period, on revenue of $54 billion.
Separately, Chevron said in its quarterly report with the SEC that it does believe it can estimate what would be a "reasonably possible loss (or a range of loss)" in a high-profile civil case pending in Ecuador alleging severe environmental damage.
In April, a court-appointed engineer issued a report to the court recommending the court assess up to $16.3 billion in damages on Chevron.
Chevron has fiercely defended itself in the case, which stems from the years its Texaco subsidiary operated in the Ecaudorian rainforest in a joint venture with Ecaudor's state-owned oil company.
Chevron asserts that the Ecuadorian government released it of all liability after Chevron paid $40 million to clean up certain oil-drilling sites.
Chevron said in its SEC filing it intends to move to strike the report and continue to vigorously defend "any attempted imposition of liability." It said it believes the report is defective, and as a result is not useful in calculating any possible loss stemming from the case.
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