Chevron shares dive as Q3 profits drop 42%
Shares in Chevron dived on Friday after the US oil and gas giant missed expectations with third-quarter profits, as the bottom line shrunk by 42% year-on-year.
Chevron Corp.
$161.80
11:10 14/11/24
Dow Jones I.A.
43,750.86
04:30 15/10/20
The California-based company reported total earnings of $6.53bn for the three months to 30 September, down from $11.23bn a year earlier, which it said was due to lower upstream realisations and lower margins on refined product sales.
Adjusted earnings per share fell to $3.05, down from $5.56 previously and significantly below the $3.70 expected by the market.
Meanwhile, total sales came in at $51.9bn, down from $63.5bn, despite net oil-equivalent output rising by 4% year-on-year, as the top line was weighed down by lower commodity prices.
Production was helped during the quarter by the completion of the acquisition of PDC energy, which expanded Chevron's presence in the Denver-Julesburg and Permian Basins in the US.
The company, which just this week announced a $53bn takeover of Hess Corp in a all-stock transaction, also completed the purchase of a majority stake in ACES Delta during the period.
Free cash flow dropped to just $5bn in the third quarter, down from $12.3bn a year earlier.
Shortly after the opening bell on Wall Street, the stock was down over 5% at $146.45p, close to its lowest levels in a year.