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Chevron's 2Q profit of $5.4 billion is down from last year on lower oil prices

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(Globalpost/GlobalPost)

Chevron's latest quarterly profit was huge — $5.37 billion — but down 26 per cent from last year due to lower oil prices and maintenance work at some refineries.

The results mirrored lower profit at Exxon Mobil and Shell, and they also lagged Wall Street expectations. In premarket trading, Chevron shares fell $1.44 to $125.

Chevron Corp. said Friday that it earned $2.77 per share in the second quarter, down from $3.66 per share. Year-ago net income was $7.21 billion.

Analysts were expecting earnings of $2.97 per share. Revenue was down 8 per cent to $57.37 billion but came in higher than the $56.01 billion that analysts expected .

Chairman and CEO John Watson said earnings fell "largely due to softer market conditions for crude oil and refined products." He said repair and maintenance work on U.S. refineries was also a factor.

In percentage terms, Chevron's profit decline was only half as steep as those reported by Exxon Mobil Corp. and Royal Dutch Shell on Thursday. But the causes were similar — lower oil prices and declining production.

The average price that Chevron got for a barrel of oil or natural gas liquids was $92 in the United States and $94 overseas; both were down $5 a barrel from last year's second quarter. Natural gas prices in the U.S. jumped 74 per cent, but that was up from 10-year lows in 2012.

Chevron's production of oil and gas fell 1.6 per cent, midway between Shell's 1.3 per cent decline and Exxon's 1.9 per cent decrease.

Chevron sold more natural gas in the U.S., but sales of refined products such as gasoline dipped both at home and overseas.

http://www.globalpost.com/dispatch/news/the-canadian-press/130802/chevrons-2q-profit-54-billion-down-last-year-lower-oil-price