Chevron Dips On Earnings Miss

Michael Teague |

With Chevron’s (CVX) underwhelming earnings report release on Friday, the world’s top three oil companies have now shown what a bad second quarter they’ve had.

Royal Dutch Shell ($RDS.A), world number three, and Exxon Mobil (XOM) , world number one, reported on Thursday, and both saw shares drop lower as lower oil prices during the recently ended period posed a significant drag on profits.

For its part, Chevron, the world’s second-largest oil company, reported that second-quarter net income was down to $5.37 billion, or $2.77 per share, compared to the previous year’s period during which the company netted $7.21 billion, or $3.66 per share. Revenue came in at $57.37 billion, compared to Q2 2012’s result of $62.61 billion. Analysts had on average expected earnings of $2.96 per share, on revenue of $56.01 billion.

Aside from lower crude prices, the exploration and production unit dragged 12 percent lower from the same time last year to $4.95 billion, and a contraction in refining margins brought downstream earnings more than 50 percent lower at $766 million.

Meanwhile, like its counterparts in big oil, production was also down from last year’s 2.62 million to 2.58 million barrels a day. The company had recently warned that production would come up short.

Still, investors had reason to be optismistic, as the company recently announced a shale oil joint venture with Argentina’s state-run YPF S.A. (YPF). Furthermore, the company was able to maintain a positive outlook, as investments in Australian liquefied natural gas projects should bear fruit over the next few years.

US refining and marketing operations dropped sharply as upstream earnings came in 18 percent lower at $1.08 billion, however, as a fire at the company’s Richmond, California facility last August contributed to a drop in crude output from 814,000 barrels per day to 114,000 barrels.

Chevron’s stock was down 1.65 percent heading towards the weekend, to $124.35. Despite the earnings miss, shares are up almost 19 percent in 2013.

[Image: Chevron's El Segundo, CA refinery, courtesy of Flickr Creative Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
CVX Chevron Corporation 122.33 -1.25 -1.01 4,436,751 Trade
XOM Exxon Mobil Corporation 78.69 -0.88 -1.11 7,231,459 Trade
JPOZZ Jpm Chase Bk Idea Cellula n/a n/a n/a 0
RDSA Royal Dutch Shell Plc ADR Sponsored Repstg A Shs n/a n/a n/a 0 Trade


Emerging Growth

Lexaria Bioscience Corp

Lexaria Bioscience Corp is a food sciences company. It has two distinct consumer product brands: ViPova and Lexaria Energy. It uses patent pending technology to infuse hemp oil ingredients within…

Private Markets

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…


Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…