Chevron Corp.'s (CVX) 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 Corp. (XOM), 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, known as the downstream segment, dropped 59% to $766 million
due to lower margins on refined product sales and higher repair and
maintenance expenses.
Operating margin shrank to 15% from 19.6%.
Shares recently traded 94 cents lower at $125.50 premarket.
The stock has climbed 17% so far this year through Thursday's close.