NEW YORK (AP) — Chevron said Friday that net income fell six percent in the third quarter as weak refining results and higher operating costs offset higher oil and gas production and prices. Chevron Corporation posted net income of $4.95 billion for the quarter on revenues of $56.6 billion. The company earned $5.25 billion on revenue of $55.66 billion in the same quarter last year. The nation's second-biggest oil company earned $2.57 per share. Analysts had expected earnings of $2.69 per share, on average, according to FactSet.
Chevron shares fell $1.08 to $118.88 in pre-market trading. Chevron's worldwide oil and gas production rose three percent, or about 70,000 barrels per day compared with last year. Higher oil prices in the U.S. and abroad, and higher natural gas prices in the U.S. also helped boost revenue. But higher operating and exploration expenses offset those gains. The company's oil and gas exploration and production earnings fell one percent in the quarter.
Pavel Molchanov, an analyst at Raymond James, called the results "not ideal" but said there were "no major disappointments." Weak refining results further eroded profits. Refining profit fell by 45 percent in the quarter because input costs such as crude oil stayed high while prices for fuel products such as gasoline fell.