Though production is up, Chevron, the nation’s second largest oil and gas producer, posted overall profits down 51 percent to $3.83 billion, or $1.92 per share, in comparison with the same three-month period last year.
The company did increase oil production by 11 percent. The average sale price was $62 per barrel — definitely better than last quarter but still far below the $103 per barrel during the same period in 2008.
“We continued to experience weak margins on the sale of gasoline and other refined products,” said Chairman and CEO Dave OReilly. “Weak demand and plentiful supply affected all our major markets.”
The exploration and production division saw profits fall 41 percent to $3.6 billion. The refining business saw earrings drop more dramatically — 89 percent to $194 million. In addition, the company said foreign exchange charges of $81 million for the quarter made it considerably more expensive to operate overseas.
The results weren’t unexpected. Chevron and other oil and gas companies did not expect results to compare to the go-go oil market of the summer of 2008.
Post from: EveryJoe