Chevron beats by $0.29, misses on revs
- Reports Q3 (Sep) earnings of $0.68 per share, $0.29 better than the Capital IQ Consensus of $0.39; revenues fell 12.2% year/year to $30.14 bln vs the $30.58 bln Capital IQ Consensus
Upstream:
- Worldwide net oil-equivalent production was 2.51 million barrels per day in third quarter 2016, compared with 2.54 million barrels per day from a year ago
- Production increases from major capital projects, shale and tight properties, and base business were more than offset by normal field declines, the effect of asset sales, maintenance-related downtime primarily reflecting a major planned turnaround at Tengizchevroil, the effects of civil unrest in Nigeria and production entitlement effects in several locations
- U.S. upstream operations incurred a loss of $212 million in third quarter 2016 compared with a loss of $603 million from a year ago
- The improvement was due to lower operating and depreciation expenses, and lower tax items, partially offset by lower crude oil realizations
Downstream:
- U.S. downstream operations earned $ 523 million in third quarter 2016 compared with earnings of $1.25 billion a year earlier. The decrease in earnings was primarily due to lower margins on refined product sales and lower earnings from the 50 percent-owned Chevron Phillips Chemical Company LLC
Co said, "Third quarter results, though down from a year ago, reflect an improvement from the first two quarters of this year. Our operational performance in the third quarter was strong. Our refineries continued to run well and Tengizchevroil completed the largest turnaround in its history ahead of schedule and under budget. We have had steady LNG production and cargo shipments from Gorgon Train 1, and we recently started LNG production from Gorgon Train 2. In light of these milestones, we expect December production between 2.65-2.70 million barrels per day in oil-equivalent."