Energy company Chevron Corp. (CVX: Quote), Thursday said it expects fourth quarter earnings to be “notably higher” than third quarter, helped mainly by gains on an asset transaction as well as on increased oil and gas output.
The oil giant expects both upstream and downstream business to perform well and post higher earnings, despite a sharp decline in industry refining margins.
Analysts polled by Thomson Reuters currently expect earnings of $3.00 per share for the quarter. Analysts’ estimates typically exclude one-time items.
San Ramon, California-based Chevron had reported net income of $5.25 billion or $2.69 per share for the third quarter.
In the downstream business, Chevron has produced more oil in fourth quarter through November than produced in the whole third-quarter. The company said its US production recovered from the impacts of Hurricane Isaac, while international production improved due to the absence of planned maintenance in Kazakhstan and the UK.
International upstream earnings for the fourth quarter is expected to include a gain of about $1.4 billion related to asset exchange in Australia.
Chevron said it expects downstream earnings in the fourth quarter to also be higher, largely reflecting a positive swing in timing effects, despite a sharp decline in industry refining margins. In the quarter, international marketing margins declined, while US marketing margins improved from the previous quarter.
CVX closed Thursday’s trade at $110.47, up 0.85%, on the NYSE. In after-hours, the stock rose 0.78%.
To receive FREE breaking news email alerts for Chevron Corp. and others in your portfolio
by RTT Staff Writer
For comments and feedback: editorial@rttnews.comBusiness News