• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 6 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 8 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 5 hours UK, Stay in EU, Says Tusk
  • 15 hours How Is Greenland Dealing With Climate Change?
  • 10 hours Socialists want to exorcise the O&G demon by 2030
  • 12 hours Is Natural Gas Renewable? I say yes it is.
  • 15 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 1 hour Algorithms Taking Over Oil Fields
  • 2 days Maritime Act of 2020 and pending carbon tax effects
  • 35 mins Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 3 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 21 hours Saudi Private Jet Industry Stalls After Corruption Crackdown
OPEC Cuts Are Already Paying Off

OPEC Cuts Are Already Paying Off

Despite troubling economic data from…

Chevron Back In Black, But Misses Q2 Profit Estimate

Chevron

As expected, Chevron Corporation (NYSE:CVX) returned to a net profit in the second quarter, driven by lower expenses and higher production, but the earnings per share of US$0.77 fell short of the analyst consensus estimate of US$0.86.

The consensus estimate was for US$1.06 per-share earnings three months ago, but has been lowered since then, as the oil price weakness and pessimism swept over the oil market.

Still, Chevron raised sales and other operating revenues in Q2 2017 to US$33 billion, from US$28 billion in same period last year. Production also increased, with worldwide net oil-equivalent production at 2.78 million barrels per day in Q2 2017, compared with 2.53 million bpd a year ago. Production growth was mostly due to output from major capital projects, base business, and shale and tight properties, as well as to lower maintenance-related downtime, Chevron said.

In the U.S. upstream, net oil-equivalent production of 701,000 bpd in the second quarter of 2017 was 19,000 bpd higher than the same period last year, due to production increases in the Permian, base business, and the Jack/St. Malo major capital project. Chevron’s U.S. upstream operations booked a loss of US$102 million, compared with a loss of US$1.11 billion a year earlier. The substantially decreased loss reflected lower impairment charges, higher crude oil and natural gas realizations, higher gains on asset sales, and lower operating expenses.

In the downstream segment, U.S. operations lifted earnings to US$634 million from US$537 million a year earlier, mostly thanks to higher margins on refined product sales and lower operating expenses.

Chevron’s cash flow from operations in the first six months of 2017 was US$8.9 billion, surging from US$3.7 billion in the corresponding 2016 period. Capital and exploratory expenditures in the first half of 2017 dropped to US$8.9 billion, from US$12.0 billion in H1 2016.

Related: Oil Rises, But Saudis Face Daunting Dilemma

“Second quarter results improved substantially from a year ago and year-to-date net cash flow is positive,” Chevron’s Chairman and CEO John Watson said in the press release.

“Operating expenses were down 10 percent and capital spending was down 25 percent in the first six months of the year versus 2016,” Watson noted.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News