By RTT News, November 01, 2013, 10:22:00 AM EDT
(RTTNews.com) - Chevron Corp. ( CVX ) on Friday reported a 6 percent decline in profit for the third quarter from last year, as lower refining margins more than offset higher oil prices as well as a slight increase in revenue. However, revenue for the quarter beat analysts' expectations and production rose 3 percent from last year.
John Watson, chairman and CEO of Chevron said, "Our third quarter earnings were down from a year ago, primarily reflecting lower margins for refined products in the current period. We continue to make good progress on our major capital projects. Construction continues, and important milestones are being reached, on our Gorgon and Wheatstone LNG projects in Australia."
San Ramon, California-based Chevron reported net income for the third quarter of $4.95 billion or $2.57 per share, down from $5.25 billion or $2.69 per share in the prior-year quarter.
On average, twenty one analysts polled by Thomson Reuters expected the company to report earnings of $2.71 per share for the quarter. Analysts' estimates typically exclude special items.
The second-largest U.S. oil company by market capitalization after Exxon Mobil Corp. ( XOM ) said its total revenues and other income for the quarter increased 1 percent to $58.50 billion from $58.04 billion in the same quarter last year. Analysts had a consensus revenue estimate of $58.41 billion.
Sales and other operating revenues for the quarter grew 2 percent to $56.60 billion from $55.66 billion in the prior-year quarter.
Chevron's worldwide net oil-equivalent production in the quarter rose 3 percent to 2.59 million barrels per day or MB/D from 2.52 MB/D in the prior-year quarter. The increase was primarily driven by lower maintenance-related downtime at Tengizchevroil and project ramp-ups in the U.S., Nigeria and Angola, partially offset by normal field declines.
The company's average sales price per barrel of crude oil and natural gas liquids was $97 in the third quarter, up from $91 a year ago. The average sales price of natural gas rose to $3.23 per thousand cubic feet from $2.63 in the prior-year period.
Chevron's upstream earnings for the quarter declined 1 percent to $5.09 billion from $5.14 billion in the prior-year quarter.
U.S. upstream earnings decreased 9 percent from last year to $1.03 billion, hurt by higher depreciation, exploration and operating expenses that were more than offset by higher crude oil and natural gas realizations.
Meanwhile, international upstream earnings increased 1 percent to $4.07 billion, primarily due to higher volumes and realizations for crude oil. This was largely offset by the absence of a 2012 gain of about $600 million from the sale of an equity interest in the Wheatstone Project, and higher operating expenses in the latest quarter.
Chevron's downstream earnings for the quarter were $380 million, down 45 percent from $689 million last year.
U.S. downstream earnings declined 45 percent from the prior-year quarter to $249 million, hurt by lower margins on refined product sales as well as higher repair and maintenance expenses. The decrease was partially offset by higher earnings from the 50 percent-owned Chevron Phillips Chemical Company LLC.
International downstream operations earned $131 million in the quarter, down 44 percent from the year-ago period. The decline reflects lower margins on refined product sales, partially offset by a favorable change in effects on derivative instruments.
Chevron's worldwide capital and exploratory expenditures for the quarter were $10.59 billion, up from $8.43 billion in the same period last year.
In Friday's regular session, CVX is trading at $117.96, down $2.00 or 1.67 percent on a volume of 803,394 shares.
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