Chevron (NYSE:CVX), the second largest global energy company by market capitalization, recorded a decline of 26% of net profit in the second quarter, the largest in four years, to $5.37 billion, and missed analysts’ expectations due to lower prices and production. In the same financial period of last year Chevron earned a net profit of $7.21 billion.
Chevron’s production of oil and natural gas fell 1.6 percent, the lowest level in five years, as new mines in Angola, Gulf of Mexico and Pennsylvania failed to offset the production decline from older mines, according to the U.S. company.
The price obtained by Chevron for oil sold abroad decreased by 5 percent in the second quarter, while refining operations profit fell by 59 percent to $766 million. Sales were down 8.4 percent, to $57.4 billion.
President and CEO of Chevron, John S. Watson, committed in March to increase production of oil and gas of the group by 20 percent to 3.3 million barrels of oil equivalent per day by the end of 2017, through mega-projects such as the major development of gas mining in Australia.
Chevron Corp. announced today that in the second quarter it earned $2.77 per share, down from $3.66 per share. Analysts expected earnings $2.97 per share.
Shares of Chevron were down 1.2 percent, closing at $124.95 today, giving the company a market capitalization of $242.28 billion, the second largest in the world for a publicly traded oil company. The stock performed better that other energy companies’ stock, up 15 percent this year. Exxon Mobil Corporation (NYSE:XOM) is first with a market cap of $408.84 billion, while PetroChina Company Limited (NYSE:PTR) is third in the energy sector with a market value of $215.7 billion.
Exxon Mobil’s has similar financial results, as the profit of the largest publicly traded company in the energy sector fell by 57 percent in the second quarter to $6.86 billion, the first decline in four years, because of negative developments in oil prices.
Reply