Chevron Earnings More Than Double in Q3

October 29 00:00 2011

New York, October 29 ( – Chevron Corp. is the latest oil company that has declared growth in Q3 earnings on the basis of higher crude prices and improved refining margins. It reported that its earnings for the third-quarter more than doubled despite lower production. ExxonMobil Corp. and Royal Dutch Shell PLC also joined the bandwagon of profit takers posting strong results on the back of crude prices being over $100 a barrel for most of the year.

California-based Chevron reported a quarterly profit of $7.83 billion, or $3.92 a share, up from $3.77 billion, or $1.87 a share, a year earlier. The company posted revenue that jumped 30% to $64.43 billion. It beat analysts’ expectations of $3.44 a share because it could boost its profit by the sale of a refinery in Europe.

Chevron Chief Financial Officer Patricia Yarrington said that a noticeably higher capital expenditure in 2012 compared with its earlier estimate of $26 billion of expenditure is expected by the company. It also plans to spend $1.25 billion in share buybacks in the fourth quarter, unchanged from the previous quarter. This commitment disappointed analysts who were expecting that Chevron would spend a part of its extra cash – $10.6 billion – in boosting its share buybacks.

Ms. Yarrington told an analyst who asked for higher share buybacks that “I guess it’s coming down to no matter how you give the cash away, not everybody is happy all the time.”