Chevron Earnings Hurt by Refining; Well Output Rises

Chevron Earnings Hurt by Refining; Well Output Rises

Reuters

Nov 1 (Reuters) - Chevron Corp reported a surprise decline in quarterly profit on Friday, hurt by weakness in the oil refining business, while production from wells increased for the No. 2 U.S. oil company but remained below target.

Chief Executive John Watson said the profit decline mainly reflected lower margins for refined products.

Third-quarter net income fell to $4.95 billion, or $2.57 per share, from $5.25 billion, or $2.69 per share, a year earlier. Analysts, on average, had expected $2.71 per share, according to Thomson Reuters I/B/E/S.

The company produced 2.59 million barrels of oil equivalent per day in the quarter, up from 2.52 million bpd a year earlier. The company has been targeting 2.65 million bpd for this year, with output expected to grow by 25 percent by 2017.

A large part of the growth in coming years will be from Chevron's Australian liquefied natural gas projects, Gorgon and Wheatstone. Because of the cost of those projects, annual capital spending has risen by $7 billion in two years to a planned $36.7 billion in 2013.

Chevron said third-quarter profit from well output was slightly lower than last year, while earnings from its downstream arm, which includes refineries and chemical production, fell 45 percent to $380 million.

The downstream difficulties were shared across the sector, with larger rival Exxon Mobil Corp posting a decline in earnings on Thursday despite an increase in oil and gas output.

Chevron shares fell 0.8 percent to $119.01 in premarket trading Friday morning.

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Cost Accountant
Expertise: Accounting
Location: Houston, 
 
Fire Protection Project Manager
Expertise: Engineering Manager
Location: Corona, CA
 
Account Manager
Expertise: Business Development|Sales
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $55.14/BBL 0.61%
Light Crude Oil : $49.48/BBL 0.86%
Natural Gas : $3.12/MMBtu 0.95%
Updated in last 24 hours