Chevron Swings To Profit As Charges Shrink

Chevron Corp. said Friday it had net income of $1.5 billion, or 77 cents a share, in the second quarter, after a loss of $1.5 billion, or 78 cents a share, in the year-earlier period. The earnings include impairments and other non-cash charges of $430 million, which were partly offset by asset sales of $160 million. Revenue rose to $33 billion from $28 billion. The FactSet consensus was for EPS of 86 cents and revenue of $33 billion. The company said its upstream operations had a loss of $102 million, narrower than the loss of $1.11 billion from the year-earlier period. "The improvement reflected lower impairment charges, higher crude oil and natural gas realizations, higher gains on asset sales, and lower operating expenses," the company said. Net oil-equivalent production of 701,000 barrels per day was up 19,000 barrels per day from a year earlier. U.S. downstream operations had earnings of $634 million, up from $537 million. Shares were flat premarket, but have fallen 10% in 2017, while the S&P 500 has gained 11%.