Chevron 2Q profit slips 7 per­cent

The Pak Banker - - COMPANIES/BOSS -

YORK: Chevron's net in­come fell nearly 7 per­cent in the sec­ond quar­ter as oil prices and pro­duc­tion de­clined.

The oil gi­ant said it earned $7.21 bil­lion, or $3.66 per share, last quar­ter. That com­pared with $7.73 bil­lion, or $3.85, a year ear­lier. Rev­enue fell by 9 per­cent in the quar­ter to $62.6 bil­lion. Those re­sults beat Wall Street es­ti­mates of $3.23 on rev­enue of $71.4 bil­lion, ac­cord­ing to Fac­tSet. Shares rose by 24 cents to $108.51 in pre­mar­ket trad­ing. Chevron Corp., the sec­ond-largest U.S. petroleum com­pany be­hind Exxon Mo­bil, said pro­duc­tion from its global net­work of oil and nat­u­ral gas wells fell 2.6 per­cent in the sec­ond quar­ter. It also sold oil for lower prices in the U.S. and over­seas. Nat­u­ral gas fetched only half as much in the U.S. as it did a year ear­lier, though gas prices rose in­ter­na­tion­ally.

The fall in pro­duc­tion and prices was tem­pered by a surge in prof­its at Chevron's re­fin­ing and mar­ket­ing oper­a­tions. Prof­its rose 80 per­cent as the com­pany sold about $200 mil­lion in as­sets, in­clud­ing its stake in a South Korean energy busi­ness. Chevron's re­finer­ies were more prof­itable be­cause the cost of oil fell and they sold ga­so­line and other fu­els at higher prices on the West coast. Like many of its peers, the San Ra­mon, Calif.-based com­pany has in­creased spend­ing on ex­plo­ration this year, even though lower oil and gas prices are gen­er­at­ing lower re­turns. "De­spite cur­rent weak­ness in the global econ­omy, we con­tinue to in­vest in our long-term growth projects to help de­liver af­ford­able energy to meet fu­ture de­mand," Chair­man and CEO John Wat­son said.

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