Chevron 2Q profit rises 5.6 percent on higher global oil prices, sales of assets
Chevron Corp. earnings rose 5.6 percent in the second quarter on asset sales and higher global oil prices, though oil and gas production slipped slightly.
Chevron, based in San Ramon, California, said Friday that net income increased to $5.67 billion, or $2.98 per share, from $5.37 billion, or $2.77 per share, in the same quarter a year earlier. The average per-share estimate of analysts surveyed by Zacks Investment Research was for earnings of $2.68, but that does not include the effect of asset sales.
The company reported revenue of $55.58 billion compared with $55.31 billion in the same quarter a year ago.
Chevron, which produces most of its oil abroad, fetched sharply higher prices for its overseas oil in the quarter. The company's average sales price rose to $101.15 per barrel, up from $93.71 last year. U.S. oil prices were flat.
The company also sold its interest in production and pipeline assets in Chad and Cameroon for $1.3 billion.
Global production slipped, however, to 2.55 million barrels per day of oil and gas from 2.58 million barrels per day last year. The company offered updates of several new production projects, and said ramp-up at those projects will help grow production by 20 percent by 2017.
Chevron shares fell $1.20 in morning trading Friday to $128.04 per share.