Chevron profit falls as oil and gas prices weaken

Chevron Corp reported a 36% drop in third-quarter profit on Friday as the oil major was hit by lower oil and gas prices due to record shale oil output in North America and a slowing global economy.

Net income attributable to the company fell to $2.58 billion, or $1.36 per share, in the three months ended Sept. 30, from $4.05 billion, or $2.11 per share a year earlier.

Chevron's worldwide net oil equivalent production grew about 3% to 3.03 million barrels per day, but average sales prices fell both in the United

States and internationally.

Meanwhile, Exxon Mobil Corp's (XOM.N) third-quarter profit nearly halved, hit by lower oil prices and weaker margins in refining and chemicals, with its three major business reporting lower year-overyear profit. Earnings fell to $3.17 billion (£2.45 billion), or 75 cents per share, in the quarter, from $6.24 billion, or $1.46 per share, a year earlier, the company reported on Friday.

It beat analysts' recently reduced expectations for earnings of 67 cents per share. The company last month warned results would be hurt by weaker chemicals and lower oil prices, prompting analysts to reduce estimates from 86 cents per share. Exxon shares rose less than 1% in premarket trading on Friday.

Exxon's results mirrored weaker results at rivals BP Plc (BP.L) and Royal Dutch Shell (RDSa.L), which earlier this week indicated they might delay dividend increases or a buyback program because of low prices. Prices have fallen for oil and gas as U.S. shale producers keep pumping more oil amid slowing global consumption growth. The company's cash flow, a closely watched metric by investors, fell 24% from a year ago. Investors have been looking for the company to improve cash flow.