DOW JONES NEWSWIRES
Chevron Corp.'s (CVX) third-quarter earnings fell 51% amid sharply lower natural gas and oil prices, though the results beat Wall Street expectations.
Shares rose 0.7% premarket to $78.50. The stock is up roughly 5% this year.
The second-largest U.S. oil company by market capitalization reported earlier this month that its performance improved sequentially amid stabilizing oil prices and gains from asset sales.
While crude prices have improved from a yearly low of less than $34 a barrel in February, they remain sharply lower than during the prior-year period. Larger rival Exxon Mobil Corp. (XOM) on Thursday posted a 68% decline in third-quarter earnings on the sharply lower prices and weak refining demand even as production rose 2.7%.
Chevron reported a profit of $3.83 billion, or $1.92 a share, down from $7.89 billion, or $3.85 a share, a year earlier. The latest period included 20 cents a share in gains from asset sales and tax items.
Revenue decreased 41% to $46.6 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of $1.47 on revenue of $46.99 billion.
Global production rose 11%.
At its exploration and production business, earnings fell 41% on lower oil and gas prices. Profit fell 60% at its U.S. business and 30% at its international operations.
At its refining, marketing and transportation segment, earnings were tumbled 89% amid weak margins and plentiful supply, especially in the U.S.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com