Chevron profit plummets but earnings trounce estimates

US oil corporation Chevron saw its quarterly profit plunge 35% from the corresponding quarter last year, but earnings were still well above analysts estimates for the period.

After three successive quarters in the red, the company did return to profit however.

A series of cost-cutting measures from Chevron brought on by falling oil prices had a detrimental effect on its profits.

During the quarter to September, Chevron reported a profit of $1.3bn, or 68 cents per share, down from $2bn, or $1.09 per share, in the same quarter last year.

Sales declined 12% from a year ago to $30.14bn.

Wall Street had expected Chevron to earn only 37 cents per share on revenues of $30.33bn.

The integrated oil company's chairman and CEO John Watson said the results were solid despite the strong headwinds in the oil industry.

"We have made progress toward our goals of lowering the cash breakeven in our upstream business and getting cash balanced," Watson said in a statement.

"Capital spending and operating and administrative expenses have been reduced by over $10 billion from the first nine months of 2015 as a result of a series of deliberate actions we have taken."

As of 1544 BST shares in the oil major were higher by 3.68% to 103.60.