Chevron Corp reported a larger than expected 36 percent drop in third-quarter profit on Friday, hit by lower oil and gas prices despite an overall increase in its output.
Net income attributable to the company fell to $2.58 billion, or $1.36 per share, in the quarter, from $4.05 billion, or $2.11 per share a year earlier. Analysts had expected earnings of $1.45 cents per share.
Chevron’s worldwide net oil equivalent production grew about 3 percent to 3.03 million barrels per day, but average sales prices fell both in the United States and internationally.
Production in the Permian Basin, the top U.S. shale field, rose 35 percent from the same period a year ago to 455,000 barrels of oil and gas daily, but its average U.S. liquids price was $47 per barrel, down from $62 a year ago.
“Lower crude oil and natural gas prices more than offset” production increases, Chevron Chief Executive Mike Wirth said in a statement. Chevron shares were down 1 percent Friday morning in premarket trading.
Results mirrored weaker results at BP Plc and Royal Dutch Shell, which indicated they might delay dividend increases or a buyback program due to low prices. Exxon earlier on Friday reported its profits fell by nearly half from a year ago.