Chevron Third-Quarter Profit Misses Estimates on Refining

Chevron Corp. (CVX), the second-largest U.S. energy producer by market value, reported third-quarter profit below estimates as weaker refining margins eroded gains from higher commodity prices and output from wells.

Net income was $4.95 billion, or $2.57 a share, compared with $5.25 billion, or $2.69, a year earlier, the San Ramon, California-based company said in a statement today. The per-share result was 13 cents lower than the $2.70 average of 21 analysts’ estimates compiled by Bloomberg.

Chevron warned in an Oct. 9 statement that quarterly profit had been eroded by “significantly lower” earnings in its so-called downstream business, which includes refining and filling stations. Maintenance work at the company’s El Segundo, California, refinery mostly offset an increase in fuel production at a separate Chevron plant near San Francisco, according to the statement.

Chairman and Chief Executive Officer John S. Watson is spending $36.7 billion this year in a push to raise oil and natural gas production by 1.5 percent to the equivalent of 2.65 million barrels of oil a day. The capital spending budget represents a 7.3 percent increase from 2012.

Chevron’s stock has increased 11 percent this year, outperforming the company’s bigger U.S. rival, Exxon Mobil Corp. (XOM), which has gained less than 3 percent. Today’s statement was released before the opening of regular U.S. stock trading. Chevron fell 0.3 percent to $119.96 in New York yesterday.

To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.