Chevron profit plummets on soggy oil production, crude prices

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Chevron, the second-largest U.S. oil producer, posted a lower-than-expected quarterly profit on Friday on lower global production and crude oil prices.

The company posted net income of $4.51 billion, or $2.36 per share, compared with $6.18 billion, or $3.18 per share, in the year-ago quarter. Analysts, though, expected earnings of $2.51 per share, according to Thomson Reuters.

Globally, Chevron's production fell 2 percent to 2.59 million barrels of oil equivalent per day (boed). The average price Chevron received for its crude oil fell as well. The results stood in contrast to rivals ExxonMobil and ConocoPhillips, which on Thursday posted quarterly profit that beat Wall Street's expectations. Both companies produce more natural gas than Chevron inside the United States, and rebounding natural gas prices in the first quarter lifted their respective results.

Chevron Chief Executive, John Watson attributed lower crude oil prices to "global economic factors'' and pinned much of the drop in production on bad weather in Kazakhstan, where the company is the largest private oil producer and holds stakes in two oil fields.

Shares of Chevron have gained about 6 percent in the last six months, closing Thursday at $124.94.

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By Reuters