Chevron posts stronger Q4 results on asset sales refining

1/30/2015 12:48:52 PM

(MENAFN- ProactiveInvestors) Chevron (NYSE:CVX) the second-largest U.S. oil producer reported stronger-than-expected results in the fourth quarter as asset sales and refining segment helped overpower falling crude prices.

Net income fell to $3.47 billion or $1.85 per share in the October-to-December quarter compared with $4.93 billion or $2.57 per share a year earlier the San Ramon California-based company said in a statement today. Results included a net $570 million gain on asset sales.

Revenue fell 18 percent to $46.1 billion.

Analysts on average had expected earnings of $1.63 per share and revenue of $30.65 billion according to Capital IQ.

Chevron’s bottom line was helped by foreign-currency effects which have been a drag on many U.S. companies’ results recently. Chevron said foreign currency helped its earnings by $432 million in the quarter up from $202 million a year earlier.

Refining marketing and chemical operations or downstream earnings surged to $1.52 billion in the fourth quarter from $390 million a year earlier.

Chevron’s profits are better insulated than most oil producers because it also makes money from refining the fuel into gasoline and diesel. The lower-cost crude has helped its refinery businesses improve profit margins.

Chevron said it plans to pare its capital spending by 13 percent this year to $35 billion while it looks to cut costs through its supply chain.

Oil prices have crashed more than 60 percent since last summer. Brent oil futures were down 20 cents at $48.93 per barrel at 9:12 while benchmark U.S. WTI futures were down 10 cents at $44.43 a barrel.

Shares fell 0.9 percent to $102.11 at 10:37 a.m. in New York extending losses in the past six months to 22 percent.

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