Chevron net falls 26% on higher costs, lower production
BY MELODIE WARNER
SAN RAMON, California -- Chevron Corp.'s second-quarter earnings fell 26% amid higher costs and a softer market for crude oil and refined products.
Chevron and other oil and gas producers have seen their results pressured by a drop in oil prices brought about by tepid global economies and a surge in U.S. production.
The second-largest U.S. oil company by market value, after Exxon Mobil, had warned last month its second-quarter oil and gas business would drop from a year earlier as lower crude prices and equipment maintenance took a toll. U.S. natural gas prices were up, but Chevron's production is tilted towards crude.
Chevron reported a profit of $5.37 billion, or $2.77 a share, down from $7.21 billion, or $3.66 a share, a year earlier. Revenue decreased 8.4% to $57.37 billion.
Analysts polled by Thomson Reuters had most recently forecast earnings of $2.96 a share on revenue of $56.01 billion.
Exploration-and-production earnings declined 12% to $4.95 billion. Global oil-equivalent production was down 1.6% to 2.58 million barrels per day as project ramp-ups in the U.S. and a project start-up in Angola were more than offset by normal field declines, Chevron said.
The profit from its refining, marketing and chemical operations, the downstream segment, dropped 59% to $766 million due to lower margins on refined product sales and higher repair and maintenance expenses.
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