Chevron (CVX) Offers Interim Update, Sees Q4 Earnings Significantly Below Q3 Results
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Financial Fact:
Net Income Attributable to Chevron Corporation - Basic: 0.68
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Net Income Attributable to Chevron Corporation - Basic: 0.68
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Chevron Corporation (NYSE: CVX) today reported in its interim update that earnings for the fourth quarter 2011 are expected to be significantly below third quarter 2011 results which were $3.92 per share.
Absent foreign exchange impacts, upstream earnings are projected to be comparable with third quarter results. Downstream earnings in the fourth quarter are expected to be near breakeven. Lower margins and refinery input volumes, and the absence of an asset sale gain are expected to reduce downstream earnings significantly compared to third quarter results. Full third quarter earnings included foreign exchange gains of nearly $450 million, compared to a loss anticipated in the fourth quarter.
The interim update contains certain industry and company operating data for the fourth quarter 2011.
U.S. crude oil realizations increased $5.14 per barrel during the first two months of the fourth quarter, while international liquids realizations declined $1.04 to $101.78 per barrel. U.S. natural gas realizations decreased $0.43 to $3.71 per thousand cubic feet, while international natural gas realizations remained relatively flat at $5.51 per thousand cubic feet during the first two months of the fourth quarter.
In the United States, Gulf Coast refining margins fell substantially in the fourth quarter compared to the third quarter. During the first two months of the fourth quarter, U.S. refinery crude-input volumes decreased by 180,000 barrels per day, largely reflecting a major turnaround at the Richmond, California refinery.
Outside the United States, refining and marketing margins fell in the fourth quarter relative to the third quarter. In addition, daily refinery crude-input volumes were down 90,000 barrels per day for the first two months of the fourth quarter, primarily reflecting the sale of the Pembroke U.K. refinery completed early in the third quarter.
The company’s general guidance for the quarterly net after-tax charges related to corporate and other activities is between $250 million and $350 million. Total net charges for the fourth quarter are expected to be notably higher than the general guidance range.
Absent foreign exchange impacts, upstream earnings are projected to be comparable with third quarter results. Downstream earnings in the fourth quarter are expected to be near breakeven. Lower margins and refinery input volumes, and the absence of an asset sale gain are expected to reduce downstream earnings significantly compared to third quarter results. Full third quarter earnings included foreign exchange gains of nearly $450 million, compared to a loss anticipated in the fourth quarter.
The interim update contains certain industry and company operating data for the fourth quarter 2011.
U.S. crude oil realizations increased $5.14 per barrel during the first two months of the fourth quarter, while international liquids realizations declined $1.04 to $101.78 per barrel. U.S. natural gas realizations decreased $0.43 to $3.71 per thousand cubic feet, while international natural gas realizations remained relatively flat at $5.51 per thousand cubic feet during the first two months of the fourth quarter.
In the United States, Gulf Coast refining margins fell substantially in the fourth quarter compared to the third quarter. During the first two months of the fourth quarter, U.S. refinery crude-input volumes decreased by 180,000 barrels per day, largely reflecting a major turnaround at the Richmond, California refinery.
Outside the United States, refining and marketing margins fell in the fourth quarter relative to the third quarter. In addition, daily refinery crude-input volumes were down 90,000 barrels per day for the first two months of the fourth quarter, primarily reflecting the sale of the Pembroke U.K. refinery completed early in the third quarter.
The company’s general guidance for the quarterly net after-tax charges related to corporate and other activities is between $250 million and $350 million. Total net charges for the fourth quarter are expected to be notably higher than the general guidance range.
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