Chevron’s third-quarter profit slumps

Chevron posted a third-quarter profit that missed Wall Street estimates by a wide margin, sending its share price down in pre-market trading.

Oil company earnings have slumped from record year-ago levels as crude prices eased and higher costs crimped refining and chemical profits. Results remain strong by historical standards but are well off year-ago levels.

Among those timing effects analysts could not model are oil inventories Chevron had in cargoes on the water, he said.

The company earned $6.5 billion, down from $11.2 billion in the same period last year. Adjusted profit was $3.05 a share, compared to analysts' expected $3.75 per share, according to LSEG data.

The earnings miss came after Chevron had warned in the second quarter that maintenance in its oil and gas production and refining businesses would hurt results.

Chevron also said its global production could suffer by 1% if a stoppage at its Tamar field in Israel continues throughout the fourth quarter.

Chevron on Oct. 9 shut down the field, a major source of gas to Israel's power generators, as instructed by the Israeli government following the Oct. 7 Hamas attacks on the country.

Chevron's Leviathan field further north continues to be operational, with the CFO declining to speculate about possible interruptions because of the conflict.

It also suffered a setback in a Kazakhstan project, with increased costs and a delay of about six months in expanding oil and gas production at its Tengizchevroil operation.