The San Francisco-based company said that after a charge of $146 million its earnings for the quarter fell to $484 million, or 73 cents a diluted share. In the same period last year, the company posted earnings of $620 million, or 94 cents a diluted share, adjusting for special net charges of $43 million.

Wall Street analysts has expected the oil major to post earnings of 70 cents a share, according the First Call Corp., which tracks estimates.

"The long-awaited recovery in crude oil prices gave our exploration and production operations a boost in the second quarter," chairman and Chief executive Ken Derr said in a statement. "Unfortunately, operational problems at our California refineries prevented us from realising the benefits of a strengthened refined products market on the West Coast."

Chevron shares were 31 centshigher at $94.31 on the New York Stock Exchange following the earnings report.