Chevron’s profit fell by 5.8% in the third quarter, to $4.95 billion, due to reduced refining margin. Chevron Corporation (NYSE:CVX), one of the six largest oil companies globally is a multinational U.S. energy company headquartered in San Ramon, California. Chevron is ranked 11th in the Fortune Global 500 top of the largest companies.
Several large oil companies have announced weak results for the third quarter due to lower earnings from refining operations. Chevron warned earlier that production will increase in the third quarter, noting that the profit of the refining and distribution division will be significantly lower compared to the same period last year.
Chief financial officer of Chevron, Pat Yarrington, mentioned in a conference call higher exploration costs for all oil and gas companies. “We’re seeing higher industry costs,” she said and added: “That’s a general trend.”
Earnings per share stood at $2.57 versus $2.69 a year ago and company’s revenues grew by 1%, to $58.5 billion.
Analysts consulted by Reuters had expected Chevron to announce a profit of $2.71 per share and a revenue of $58.4 billion. Pavel Molchanov, an analyst with Raymond James said that the results were “no major disappointments.”
Average production in the third quarter stood at 2.59 million barrels oil equivalent per day from 2.52 million barrels in the same period last year.
Chevron is running this year an investment plan in production of $36.7 billion and is anticipating a 1.5% increase in daily average of 2.65 million barrels of oil equivalent.
Chevron energy business includes oil, gas and geothermal energy sectors, exploration and production; refining, marketing and transport; chemical manufacturing and power generation. The company will spend this year $36.7 billion on projects such as building liquefied facilities in Australia and a new production platform in the Gulf of Mexico.
Chevron shares closed the session today at $118.01 with a market capitalization of $228 billion and a 52 week range between $100.66 and $127.83 a share.
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