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Chevron forecasts ‘notably higher’ fourth-quarter profit (MIKE BLAKE/REUTERS)
Chevron forecasts ‘notably higher’ fourth-quarter profit (MIKE BLAKE/REUTERS)

Chevron forecasts ‘notably higher’ fourth-quarter profit Add to ...

Chevron Corp, the second-largest U.S. oil company, said on Thursday its fourth-quarter profit would be “notably higher” than the previous quarter as oil and gas output bounced back and it booked a $1.4-billion (U.S.) gain on an asset transaction.

The average U.S. production of oil and gas from wells rose to 676,000 barrels per day in October and November, compared with a hurricane-depressed average of 637,000 bpd for the third quarter, the company said in its quarterly interim update.

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Worldwide, Chevron produced the oil equivalent of 2.66 million bpd in the first two months of the quarter, up from an average 2.52 million in the third quarter – when production was reduced by maintenance in the U.K. and Kazakhstan.

Shares of Chevron rose 0.6 per cent to $111.11 in after-hours trading, after closing up 0.8 per cent in the regular session.

Before the interim update, analysts had expected a net profit of $3 per share for the fourth quarter, according to Thomson Reuters I/B/E/S, up from $2.57 in the third quarter and $2.58 in the fourth quarter a year before.

Chevron got no help from oil prices in the quarter, with an average Brent oil price of $110 per barrel, basically the same as the previous quarter and up just $1 per barrel from a year before.

The $1.4-billion gain stemmed from a deal with Royal Dutch Shell PLC, announced in August, in which Shell swapped interests in two fields off Australia for Chevron’s holdings in the Browse liquefied natural gas project.

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CVX-N Chevron Corp. 119.32 -1.23
-1.02 %
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