Chevron Corp (NYSE:CVX) shares fell on Friday as the oil giant missed analysts’ expectations for earnings and revenue in the third quarter amid falling oil and gas prices and a slowing global economy.
The firm revealed the average sale price for a barrel of crude oil and natural gas liquids was US$47, which was 24% lower than the US$62 average price in the same period a year ago. Prices were hit by record shale production in North America for the quarter, at 455,000 barrels of oil per day.
The group posted earnings per share for the three months to end September of US$1.36 per share, versus analysts estimates for US$1.45. That was on revenue of US$36.12 billion, compared to the figure of US$37.69 billion which analysts had expected.
In the same three months a year ago, Chevron reported earnings of US$2.11 per share and US$43.99 billion in revenue.
"Third-quarter earnings and cash flow were solid, but down from our very strong results of a year ago,” Michael Wirth, Chevron’s chairman and chief executive, told investors.
"Lower crude oil and natural gas prices more than offset a 3% increase in net oil-equivalent production from last year's third quarter."
The company boss added that global demand for energy continues to grow, and Chevron was "committed to meet the demand with less environmental impact".
"We recently announced new goals to reduce net greenhouse gas emission intensity from upstream oil and natural gas production," he said.
"During the third quarter, we began capturing and storing carbon dioxide at our Gorgon LNG facility in Australia, one of the world’s largest greenhouse gas mitigation projects. Also, construction is underway on a new solar farm, which will supply low-carbon electricity to the Lost Hills Oil Field in California," he noted.
Shares in Chevron lost 1% to stand at US$114.92 in early trade.
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