Chevron Beats Quarterly Profit Expectations on Higher Production

Reuters11-01

Nov 1 (Reuters) - Chevron Corp on Friday beat Wall Street estimates for third-quarter profit, helped by higher oil and gas output, but overall earnings fell compared to the year-ago level.

Chevron shares jumped 2.5% on the news.

The company, whose proposed $53 billion takeover of Hess has been delayed due to a challenge by rivals Exxon Mobil and CNOOC Ltd , reported a profit of $4.53 billion, compared to $5.72 billion a year ago.

Oil industry profits have sagged this year from softer oil prices and weaker fuel demand growth. Oil futures in the quarter ended Sept. 30 averaged 17% below the prior quarter, and global fuel margins have suffered from slowing demand growth and excess supplies.

European oil majors BP and TotalEnergies this week also posted weaker results on sharp year-over-year declines on refining margins, lower oil prices and gas-trading profits. Exxon Mobil also posted better than expected profit but total profit fell 5% compared to the year-ago level.

Chevron said it earned $2.51 per share for the quarter, compared to analysts' estimates of $2.42, helped by a 7% year-over-year increase in oil and gas volumes and operating cost cuts.

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