Chevron warns 4Q profit to be lower than Q3
12 Jan 2012
Chevron Corp said today, its fourth-quarter profit would be "significantly" below third-quarter results, due partly to weaker profit margins on refining and selling fuels.
The oil giant today said, its usually profitable refining and marketing business would roughly break even. Refinery volumes in the US and overseas were down from the third quarter, and refining margins plunged on the US Gulf Coast.
According to Chevron, its exploration and production unit would post a profit similar to the third quarter, as higher prices for crude oil and liquids in US offset continuing low prices for natural gas.
The company also expects to take a hit from the absence of currency-exchange benefits that saw third-quarter results swell nearly $450 million. It expects a loss there.
The shares were down $1.29 to close at $107.77 ahead of the company's release of the fourth-quarter update. In after-hours trading, they were down $2.11, or 2 per cent, to $105.63.
The third quarter saw Chevron's profit more than double on the year earlier even as production declined, due to rising prices for oil, gasoline and other fuels. The company grossed a net income of $7.83 billion, or $3.92 per share, on revenue of $61.3 billion.