Integrated oil producer Chevron Corporation (NYSE:CVX) this morning posted mixed third quarter earnings results, as profit easily topped estimates but revenue fell short of expectations.
The San Ramon, CA-based company reported Q3 net income of $0.68 per share, a massive $0.29 better than Wall Street’s view of just $0.39. Revenue fell 2.2% from last year, however, totaling $30.14 billion and missing analyst estimates of $30.58 billion.
Upstream operations produced 2.51 million barrels of oil in the third quarter, roughly the same as last year’s 2.54 million total. That unit stemmed its losses to $212 million in Q3, versus a much larger loss of $603 million in the year-ago period.
Downstream operations earnings plunged to $523 million from $1.25 billion last year, hurt by much weaker margins and lower earnings from the Chevron Phillips Chemical Company LLC, which CVX owns a 50% stake in.
The company commented via press release:
“Third quarter results, though down from a year ago, reflect an improvement from the first two quarters of this year. Our operational performance in the third quarter was strong. Our refineries continued to run well and Tengizchevroil completed the largest turnaround in its history ahead of schedule and under budget. We have had steady LNG production and cargo shipments from Gorgon Train 1, and we recently started LNG production from Gorgon Train 2. In light of these milestones, we expect December production between 2.65-2.70 million barrels per day in oil-equivalent.”
Chevron shares rose $0.58 (+0.58%) to $100.50 in premarket trading Friday following the earnings release. Prior to today’s report, CVX had gained 11.07% year-to-date, more than doubling 4.55% return of the benchmark S&P 500 during the same period.