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CHEVRON ANNOUNCES FIRST QUARTER EARNINGS

 CHEVRON ANNOUNCES FIRST QUARTER EARNINGS
 SAN FRANCISCO, April 28 /PRNewswire/ -- Chevron Corporation today


reported first quarter earnings of $304 million, down 45 percent from the $557 million earned in the first quarter of 1991. Earnings per share declined to $.88 from $1.59. Special items, primarily asset sale gains, increased 1992 earnings $87 million, whereas in the 1991 first quarter, special items reduced earnings $24 million.
 Total revenues were $9.7 billion, compared with $10.8 billion in the prior-year quarter. The revenue decline resulted from lower prices for both crude oil and refined products.
 "The first quarter saw no improvement in the depressed state of the U.S. petroleum and chemical industries," said Board Chairman and CEO Ken Derr. "Low crude oil and natural gas prices coupled with sluggish demand for refined petroleum and chemical products continue to take their toll on our earnings."
 Derr continued, "Our previously announced cost-reduction programs and reorganizations are well underway. I'm confident we will become a leaner, better focused and more profitable company, irrespective of industry conditions."
 Derr also noted that during the quarter the company substantially completed its previously announced program to purchase on the open market 14.1 million shares of its common stock -- the number of shares that had been issued in 1989 to the company's Employee Stock Ownership Plan. During the quarter, 5.4 million shares were purchased for approximately $350 million; at March 31, 1992, there were 341.3 million Chevron shares outstanding.
 Foreign exchange losses were $17 million, compared with $9 million in the 1991 first quarter. United States Petroleum
 Exploration and Production earned $55 million in the first quarter, down sharply from the $158 million earned in the 1991 first quarter. Asset sale gains from the company's ongoing program to dispose of marginal producing properties were $8 million and $23 million in the 1992 and 1991 periods, respectively.
 Earnings declined on lower prices and lower production for both crude oil and natural gas. Average crude oil prices were down $3.18 to $14.32 per barrel as worldwide crude oil supplies remain plentiful. Average natural gas prices were down 13 percent to $1.41 per thousand cubic feet as the weak economy and an unusually warm winter exacerbated the supply and demand imbalance. Liquids production declined about 1 percent as new production was more than offset by sales of producing properties and natural field declines; natural gas production declined nearly 7 percent, reflecting production curtailments in response to poor market conditions and producing property sales.
 Refining and marketing earned $39 million, compared with $99 million reported for the 1991 first quarter. The 1992 period included $5 million of environmental provisions, while the 1991 period included $47 million of environmental provisions and asset write-offs.
 Although slightly improved from the 1991 fourth quarter, low refined product sales margins continued to depress earnings in 1992 as weak demand held down prices. Average refined product prices were $23.66 per barrel, down 16 percent from last year's first quarter. Total sales volumes increased 1 percent, but gasoline volumes were up 5 percent. Refinery input increased 11 percent from last year's first quarter when unscheduled refinery downtime occurred. International Petroleum
 Exploration and production earnings were $143 million, compared with $156 million in the 1991 first quarter. Earnings in 1992 included $31 million of gains from the sale of non-producing properties in the United Kingdom. Operationally, earnings declined on lower crude oil prices. Liquids production volumes declined 1 percent, while natural gas volumes were about flat. Increased liquids production in West Africa and China did not quite offset a decline in U.K. North Sea production and the absence of production from properties sold in 1991. Foreign exchange losses in the 1992 quarter were $8 million, compared with gains of $3 million in the 1991 first quarter.
 Refining and marketing earnings were $22 million, down from $134 million in last year's first quarter when sales margins were much stronger in the United kingdom and the Caltex areas of operations, particularly Japan. Also contributing to the earnings decline were lower profits from trading operations. Sales volumes increased 13 percent, primarily in markets served by the company's Caltex affiliate. Foreign exchange losses in the first quarter of 1992 were $22 million compared to $17 million in the 1991 quarter. Chemical Operations
 Chemicals earned $98 million, up from $73 million in the first quarter of 1991; however, 1992 earnings included benefits totaling $53 million from several agricultural chemical product licensing agreements, sales of fertilizer plants and related reserve adjustments. The company has essentially completed its previously announced plans to withdraw from the agricultural chemical and fertilizer businesses.
 Excluding the special gains, earnings declined from last year's strong first quarter when feedstock costs fell rapidly after the successful resolution of the Middle East crisis. Although weak demand and industry overcapacity persist, first quarter 1992 saw an improvement in sales margins from the last half of 1991. Capital and Exploratory Expenditures
 Worldwide capital and exploratory expenditures, including the company's share of affiliates expenditures, were $1,080 million in the 1992 first quarter, up from $901 million in the first quarter of 1991. Planned spending for 1992 is currently estimated at $4.7 billion, down slightly from last year.
 -0- 4/28/92
 /CONTACT: Sherri Zippay of Chevron Corp., 415-894-4581/
 (CHV) CO: Chevron Corp. ST: California IN: OIL SU: ERN


RM-MM -- SF005 -- 3797 04/28/92 12:21 EDT
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Date:Apr 28, 1992
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