Chevron Revenue Jumps With Oil, Output Growth Sluggish
NEW YORK/SAN FRANCISCO (Reuters) – Chevron Corp, the second-largest U.S. oil company, booked a 43 percent nw natural gas warm program leap in quarterly revenue, beating estimates as high oil prices and fat refinery margins offset weaker output.
The numbers out on Friday had been the newest in a string of enormous income from the industry, which acquired a boost from the very nw natural gas warm program best oil prices in almost three years. Exxon Mobil Corp and Royal Dutch Shell Plc also benefited from acquisitions and shifts into new tasks.
Chevron’s better-than-expected second-quarter performance was largely as a result of energy of its U.S. and worldwide refineries, in accordance with Oppenheimer & Co analyst Fadel Gheit.
Still, the oil and gas production business yielded practically ninety p.c of Chevron’s earnings. “That is the most leveraged company to oil price in the entire group,” Gheit stated.
Its revenue rose to $7.7 billion, or $3.85 per share, from $5.4 billion, or $2.70 per share, a yr earlier. Analysts had anticipated $3.Fifty six a share, according to Thomson Reuters I/B/E/S. Income rose 30 p.c to $69 billion.
Shares of Chevron were down zero.7 p.c to $104.30 by midday on the brand new York Inventory Exchange amid a broad promote-off.
OIL OUTPUT SLIPS, OUTLOOK TRIMMED
Chevron reported 2.Sixty nine million barrels per day (bpd) of oil-equivalent output, compared with 2.75 million a yr-ago.
Chevron trimmed its 2011 oil and gas production forecast to 2.76 million bpd on account of a slower ramp-up of its Perdido mission in the Gulf of Mexico and a pipeline downside in Thailand. Chevron had targeted 2.79 million bpd, or 1 percent development.
“The complete-12 months manufacturing influence of these two gadgets is about 30,000 barrels per day and they’re roughly split between the 2,” said George nw natural gas warm program Kirkland, vice chairman and executive vice president for upstream and fuel.
But it stuck to its 2011-2014 common annual production development target of 1 percent, and 4 percent to 5 percent for 2014-2017.
European benchmark Brent oil prices averaged $117 per barrel within the second quarter, up from $79 in the same quarter in 2010 and $11 increased than the first quarter. Chevron mentioned in April that it switched to Brent from the U.S. benchmark when calculating manufacturing-sharing modifications.
Greater crude prices mean Chevron must depart more production in the palms of state-owned companions. The brand new target nonetheless assumes oil prices of $79 per barrel, whereas with Brent at $111 per barrel Chevron sees output at 2.Seventy three million bpd.
On Thursday, Exxon reported a forty one p.c rise in quarterly profit that missed analysts’ forecasts.
Exxon has aggressively pushed into U.S. natural gasoline, whereas Chevron has made a more deliberate transfer with two offers within the Marcellus shale prior to now 12 months. Kirkland signaled there would be no extra large offers.
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