Chevron profit falls as oil and gas prices weaken

By Jennifer Hiller

HOUSTON (Reuters) – Chevron Corp (NYSE:) reported a larger than expected 36% drop in third-quarter profit on Friday, hit by lower oil and gas prices despite an overall increase in its output.

Net income attributable to the company fell to $2.58 billion, or $1.36 per share, in the quarter, from $4.05 billion, or $2.11 per share a year earlier. Analysts had expected earnings of $1.45 cents per share.

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.

Production in the Permian Basin, the top U.S. shale field, rose 35% from the same period a year ago to 455,000 barrels of oil and gas daily, but its average U.S. liquids price was $47 per barrel, down from $62 a year ago.

“Lower and prices more than offset” production increases, Chevron Chief Executive Mike Wirth said in a statement.

Chevron shares were down 1% Friday morning in premarket trading.

Results mirrored weaker results at BP (LON:) Plc and Royal Dutch Shell (LON:), which indicated they might delay dividend increases or a buyback program due to low prices. Exxon (NYSE:) earlier on Friday reported its profits fell by nearly half from a year ago.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.