Oil giant Chevron Corp. reports that fourth quarter earnings will be “significantly below” third quarter results.”Lower margins and refinery input volumes, and the absence of an asset sale gain are expected to reduce downstream earnings significantly compared to third quarter results,” the company said in a statement.
The San Ramon, Calif., based firm believes upstream earnings, or earnings generated from the discovery and production of crude oil, will be comparable to third quarter results of $6.2 billion.
However, downstream earnings, or income generated from the refining of crude, will fall to near break even.
Top line results during the third quarter were $61 billion, including foreign exchange gains of nearly $450 million.
Gulf Coast downstream production decreased by 180,000 barrels a day during the first two months of the first quarter. The sale of the company’s Pembroke operations also reduced crude-input volumes by 90,000 barrels a day.
Before the announcement, analysts polled by Bloomberg expected earnings per share of $3.27 on sales of $59.6 billion.
Shares in Chevron are trading 2.2% lower in after-market trading. The company will report fourth quarter results on January 27, 2012.