Oil giant Chevron today reported a 26% decrease in third-quarter net income due to weak refining and marketing conditions in the U.S.
CVX posted profit of $3.7 billion, or $1.75 a share, from $5 billion, or $2.29 a share, in the period a year ago. Excluding $400 million, or 19 cents a share, for non-recurring items, earnings came in at $1.94 a share. The average analyst estimate had earnings pegged at $2.07 a share.
Drilling deeper into the report, exploration and production earnings fell to $3.43 billion from $3.5 billion a year ago, while earnings from refining, marketing, and transporting fuel took a huge hit, falling to $377 million from $1.44 billion.
Revenue, on the other hand, rose to $53.55 billion from $53 billion a year ago (surprise, surprise- an oil company sees an increase in earnings). Production came in at 2.6 million barrels a day in the third quarter, compared to around 2.7 million barrels a year ago. The company attributed production decline to the converting of operating service agreements in Venezuela to joint-stock companies.
As a result of the news, Chevron shares have dropped 1.33 points, or 1.49%, to $87.71 in intraday trading.