Chevron Sees Big Earnings Drop on Refining Margins
Chevron said Tuesday it expects its third-quarter earnings to be significantly below the $5.4 billion it earned in the second quarter, due to a sharp drop in its refining margins.
The oil company said one-time items should also hurt third-quarter earnings. Chevron expects to post $700 million in charges during the quarter, offset slightly by a $260 million gain from the sale of marketing assets in Belgium, the Netherlands and Luxembourg, it said in an interim report.
Shares of Chevron fell 2.9 percent to $90.12 in extended trade on Tuesday after warning that its third-quarter profit will be significantly lower than what it earned in the previous quarter.
Chevron also said its worldwide production for the first two months of the quarter fell about 1 percent from second-quarter levels of 2.63 million barrels per day.
Analysts were expecting the company to post third-quarter earnings of around $2.17 a share, according to Reuters Estimates. It had posted second-quarter earnings, excluding one-time items, of $2.37 per share.
Chevron's $5.4 billion second-quarter result included a $680 million one-time gain as well as losses of $160 million from debt reduction.
Shares of Chevron fell 2.9 percent to $90.12 in after-the-bell trading Tuesday afternoon.