Adjusted Earnings Miss Forecasts on Lower U.S. Production, Shares of Chevron Decline
Oct, 27th 15:23
Shares of Chevron Corp. shed nearly 3 percent in North American trading session on Friday after the second-largest U.S. oil and gas group reported its overall U.S. production fell in the third quarter.
Chevron’s shares edged 2.95 percent lower to trade at $114.95 after the company said it had net income of $1.952 billion, or $1.03 a share for the quarter ended September. The reading was higher than $1.283 billion, or 68 cents a share, in the year-earlier period. Revenue was reported to jump to $36.2 billion from $30.1 billion, topping analysts’ expectations calling for EPS of 98 cents and revenue of $34.5 billion.
However, adjusted for non-incurring items that include asset sale gain of $675m, earning per shares were below analysts’ expectations at 85 cents. Despite output increases in the Gulf of Mexico and the Permian basin, Chevron’s U.S. production decreased by 17,000 barrels per day of oil equivalent, driven majorly by lower natural gas output and natural decline of wells in other areas, not to mention asset sales.
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