Tags: US | Earns | Chevron

Chevron Profit Falls 37 Percent on Refining Losses

Friday, 29 Jan 2010 11:04 AM

Chevron Corp. said Friday its fourth-quarter profit fell 37 percent as higher crude prices led to huge losses in its refining business.

The nation's second-largest oil company reported earnings of $3.1 billion, or $1.53 per share, for the final three months of 2009. That compares with $4.9 billion, or $2.44 per share for the same period of 2008. Revenue increased 10.3 percent to $47.6 billion.

Analysts expected quarterly earnings of $1.70 a share on revenue of $40.4 billion.

For the full year, Chevron earned $10.5 billion, or $5.24 per share, compared with $23.9 billion, or $11.67 per share in 2008.

Chevron chairman and CEO John Watson blamed the drop in profits on a weak economy and a wild swing in energy prices from 2008 to 2009.

In the fourth quarter of 2009, oil prices climbed as energy traders anticipated an economic recovery and a rise in oil consumption. In the same period of 2008, they were in free fall, giving up nearly 60 percent of their value in three months.

Chevron's finances were pulled in different directions. Its oil production business boomed, earning more than $4 billion in the quarter. But its refineries tanked, losing $613 million in the fourth quarter compared with a profit of $2 billion in the year-ago period.

Chevron has responded by aggressively cutting expenses, slashing costs 15 percent in 2009, Watson said.

In December, Chevron said it would pull its name from 1,100 service stations in the eastern half of the U.S. where it has the most competition. The company planned to make up for the lost business with a stronger presence in other parts of the country.

And earlier this month, Chevron said it would shrink its refining business and cut jobs throughout the company.

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Chevron Corp. said Friday its fourth-quarter profit fell 37 percent as higher crude prices led to huge losses in its refining business.The nation's second-largest oil company reported earnings of $3.1 billion, or $1.53 per share, for the final three months of 2009. That...
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2010-04-29
Friday, 29 Jan 2010 11:04 AM
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