Chevron Corporation (NYSE:CVX) reported nearly halved net income in the third quarter reflecting reduced margins and fluctuating oil prices.
The San Ramon, California-based oil exploration company's total revenue in the three months to September 30 fell 19% to $54.08 billion from $66.64 billion, while net income slipped 42% to $6.56 billion from $11.24 billion the year before.
Basic net income per share fell 40% to $3.48 from $5.81.
Chevron said the drop in earnings was primarily due to lower upstream realizations and lower margins on refined product sales.
“We delivered another quarter of solid financial results and strong cash returns to shareholders,” said Mike Wirth, Chevron’s chairman and chief executive officer.
The firm recently announced the $53 billion purchase of Hess, and Wirth said the company was “investing to profitably grow our traditional and new energy businesses to drive superior value for shareholders.”
Upstream net income fell 38% to $5.76 billion from $9.31 billion before while in Downstream, profit fell by 34% to $1.68 billion from $2.53 billion.
International downstream tumbled 75% reflecting “lower margins on refined product sales and lower favourable foreign currency effects."