Stock prices of the second biggest American oil firm dropped by over 2% following warning by the company that 4th quarter gain would be substantially below last quarter due to reduced production.
Chevron announced that earnings from gas and oil production is expected to be around $6.2 billion as in the third quarter but impact of foreign exchange earnings of about $450 million were not accounted for in the third quarter. Analysts had been predicting Q4 net profit to the tune of $6.6 billion as compared to $5.3 billion last year and $7.8 billion in Q3 of 2011.
Chevron said international oil production increased during initial two months of Q4 from to 1.98 million bpd as compared to 1.94 million bpd for all of Q3. However during the 3rd quarter, U.S. production decreased during October and November from 662,000 to 660,000 bpd.
In the refining section, the company informed that Gulf Coast margins dropped significantly during Q4 as compared to Q3. In addition to that U.S. refinery input dropped roughly by 180,000 bpd to 717,000 bpd. Chevron is due to report Q4 earnings on January 27.
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