Chevron Drops on Profit Warning

[Stocks-to-Watch]

Chevron (CVX) shares fell after hours as the company announced that it now expects fourth quarter earnings to be “significantly below” third quarter results.

In particular, refining results were lower in the fourth quarter than in the third quarter, as refining margins have fallen in the Gulf and outside the U.S.

“Absent foreign exchange impacts, upstream earnings are projected to be comparable with third quarter results. Downstream earnings in the fourth quarter are expected to be near breakeven. 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.

Chevron is expected to discuss its full fourth quarter results 0n the morning of Jan. 27.



Original Article Source by Barrons.com