Chevron Corp. fourth-quarter profit fell 32% as the energy giant
reported lower global production and weaker refined products
margins.
Though profit for the period met Wall Street's expectations,
revenue missed expectations by nearly $9 billion.
Chevron's global oil-equivalent production for the fourth
quarter fell to 2.58 million barrels a day from 2.67 million
barrels a day a year earlier, hurt by lower production in the U.S.
and abroad.
Chevron, the second-largest U.S. oil company in market value
after Exxon Mobil Corp., had previously signaled fourth-quarter
global oil and gas production was poised to decline from year-ago
levels, while commodity prices were also on pace to be slightly
lower.
"Global crude oil prices and refining margins were generally
lower in 2013 than 2012," Chairman and Chief Executive John Watson
said. "These conditions, as well as lower gains on asset sales and
higher expenses, resulted in lower earnings."
Looking to 2014, the company has said it is planning to spend
about $2 billion less on capital and exploratory investments than
what was expected last year. And while Chevron, Exxon and others
have spent lavishly to boost their oil and gas output, production
has been dropping and profits have been muted, even though oil
prices are high.
Overall, Chevron reported a profit of $4.93 billion, or $2.57 a
share, down from $7.25 billion, or $3.70 a share, a year earlier.
The prior-year period included a $1.4 billion gain from an upstream
asset exchange in Australia.
Revenue slid 7.3% to $56.16 billion.
Analysts surveyed by Thomson Reuters had projected a profit of
$2.57 a share on $64.93 billion in revenue.
Exploration-and-production earnings slid 29%, hurt by lower
profits in both the U.S. and abroad. Results were hurt by lower
production and a modest drop in average sales prices in the
U.S.
The profit from Chevron's refining, marketing and chemical
operation, known as the downstream segment, slumped 58% to $390
million due to higher expenses and lower margins on refined
products in the U.S. Internationally, results were hurt by lower
margins and fewer asset sale gains.
Write to John Kell at john.kell@wsj.com
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