Chevron Q4 Earnings Edge Past Street’s Estimate as Refining Business Flourishes (CVX)
2/2/2013 3:11:04 AM
United State’s second largest oil producer in terms of market capitalization, Chevron Corp. (NYSE: CVX) reported better than expected fiscal fourth-quarter earnings on Friday thanks to rising strength in refining business allying fears of any impact on results after massive fire that devastated the company's oldest refinery last August.
Glut of oil produced from shale formations in the U.S. is propelling refining margins.
The Company said that efforts were still on to overcome the impact of devastation caused by a fire in its Richmond refinery and expects it to become up and running in the current quarter. Earlier on Wednesday, the State’s workplace safety regulators imposed hefty fine on Chevron for the accident.
The San Ramon, California-based Company reported net income came of $7.2 billion, or $3.70 a share, compared with $5.1 billion, or $2.58 a share, in the year earlier quarter.
The results included a onetime gain of $1.4 billion linked to a transaction with Royal Dutch Shell Plc announced in August, in which Shell bartered interests in two fields off Australia for Chevron's holdings in the Browse liquefied natural gas project in Australia.
After excluding onetime items, earnings on adjusted basis or non-GAAP basis stood at $3.27 a share, which was higher than analysts’ consensus forecast of $3.03 a share, according to a data compiled by Thomson Reuters.
While earnings in the oil and gas production business (after including gains arising from assets swap with Shell), rose 20 percent to $6.9 billion, profit from refining operations climbed to $925 million, against a loss of $61 million, in the same period of last year.
Upstream production rose to 2.67 million barrels of oil equivalent per day, from 2.64 million bpd, in the same period of last year.
Reacting over the results Chevron’s Chief Executive, John Watson, said that the Company has outpaced the industry in earnings per barrel from oil and gas production, in last three years.