SAN FRANCISCO — ChevronTexaco Corp. said Tuesday its second-quarter profit plunged 81 percent as losses on its investment in troubled energy trader Dynegy Inc. hammered the oil giant.
The company earned $407 million, or 39 cents per share, in the three months ended June 30 — down from $2.16 billion, or $2.04 per share, at the same time last year. Second-quarter revenue totaled $25.2 billion, down 13 percent from $29 billion last year.
The results included a $631 million loss on ChevronTexaco’s 26.5 percent stake in Houston-based Dynegy Inc., whose stock dropped 75 percent in second quarter amid intensifying questions about its business practices.
The scrutiny led to the May resignation of Dynegy’s chief executive officer and co-founder, Chuck Watson. As part of its management shake-up, Dynegy appointed a ChevronTexaco executive, Glenn Tilton, as its interim chairman.
Most of the Dynegy charge stemmed from $531 million in second-quarter losses on ChevronTexaco’s stock holdings in the Houston company. ChevronTexaco also absorbed a $100 million charge to account for its share of Dynegy’s second-quarter loss of $328 million.