(Reuters) – Chevron reported a quarterly profit that fell short of expectations on Friday as the U.S. oil major was hurt by weak refining margins, sending its shares down 1.5 percent in premarket trading in New York.
Chevron’s underperformance comes after it warned in June that maintenance work at some of its oil and gas production and refining facilities would impact its results.
Refining margins have been weak globally, affecting other major oil companies such as BP and Shell.
Profits from oil and gas pumping fell by 9.4% compared to the previous year. Profits from gasoline and chemical production also fell by about 60% to $597 million (€551.65 million).
Adjusted earnings per share came in at $2.55 for the period, below analysts’ expectations of $2.93 in an LSEG consensus.
“Despite recent operational disruptions and declining margins, we remain poised to deliver meaningful long-term earnings and cash flow growth,” said Mike Wirth, the company’s chief executive officer.
The disappointing results come as the $53 billion acquisition of oil producer Hess has stalled.
Chevron said Wednesday that an arbitration panel evaluating Exxon Mobil’s challenge to the deal likely wouldn’t issue its decision until the second half of next year.
Chevron is counting on the deal to gain a foothold in Guyana’s lucrative oil reserves and mitigate risks from its oil and gas operations in Australia and Kazakhstan.
Exxon Mobil, which also reported quarterly results on Friday, reported a second-quarter profit of $9.2 billion, beating analysts’ expectations.
(Reporting by Sabrina Valle and Mrinalika Roy in Bangalore, by Elena Smirnova, edited by Augustin Turpin)
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