Chevron’s profit a ‘dissapointing’ $5.37 billion

  • By David Koenig Associated Press
  • Friday, August 2, 2013 3:56pm
  • Business

Chevron’s latest quarterly profit was huge — $5.37 billion — but down 26 percent from last year due to lower oil prices, less production, and maintenance work at some refineries.

The results mirrored lower profit at Exxon Mobil and Shell, and they also lagged Wall Street expectations. Chevron shares fell $1.49, or 1.2 percent, to $124.95 Friday.

Consumers aren’t likely to feel sorry for Chevron — not after they fill their tanks at the national average of $3.63 for a gallon of gas. And Chevron’s quarterly profit was much fatter than those at Google, General Electric and Johnson &Johnson — like Chevron, they all rank among the 10 biggest companies by stock market value.

But for the second-biggest U.S. oil company, Chevron Corp.’s haul was considered disappointing because a year ago it earned $7.21 billion.

Chevron’s profit worked out to $2.77 per share, down from $3.66 per share a year ago. Analysts were expecting $2.97 per share, according to FactSet.

Revenue fell 8 percent to $57.37 billion but came in higher than the $56.01 billion that analysts expected.

Chairman and CEO John Watson said earnings fell “largely due to softer market conditions for crude oil and refined products.” He said repair and maintenance work on U.S. refineries was also a factor.

In percentage terms, Chevron’s profit decline was only half as steep as those reported Thursday by Exxon Mobil Corp., which earned $6.86 billion on revenue of $106.47 billion, and Royal Dutch Shell. But the causes were similar — lower oil prices and declining production.

The average price that Chevron got for a barrel of oil or natural gas liquids was $92 in the United States and $94 overseas; both were down $5 a barrel from last year’s second quarter. Natural gas prices in the U.S. jumped 74 percent, but that was up from 10-year lows in 2012.

Chevron sold more natural gas in the U.S., but sales of refined products such as gasoline dipped both at home and overseas.

Production of oil and gas fell 1.6 percent, midway between Shell’s 1.3 percent decline and Exxon’s 1.9 percent decrease.

Chevron boosted production in the Marcellus shale of Pennsylvania, a deep-water development in the Gulf of Mexico and a new project in Angola, but that wasn’t enough to offset declines in maturing fields elsewhere.

This week’s numbers underscored the challenge that the major oil companies face to tap new sources. They must drill in remote areas or blast through tight rock formations. The costs are high, and it can take years for a project to begin producing crude.

Big Oil may be reining in any ambitions of boosting production. Exxon has posted nine straight quarters in which output sank from 12 months earlier. Shell announced it was dropping plans to raise production to 4 million barrels per day by 2018 from the current 3 million per day.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.