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Chevron posts stronger Q4 results on asset sales, refining

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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.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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