Chevron earnings more than double on refinery sale

Chevron Corp. reported its biggest quarterly profit in three years, outperforming other major oil companies, as rising crude prices and proceeds from the sale of a refinery made up for a slump in production.

Third-quarter net income more than doubled to $7.83 billion, or $3.92 a share, from $3.77 billion, or $1.87, a year earlier, the San Ramon, Calif., company said in a statement Friday. Chevron was expected to report per-share profit of $3.47, based on the average of 19 analysts’ estimates compiled by Bloomberg.

Chevron quit the European oil-refining market in August when it sold a Welsh refinery and related assets to Valero Energy Corp., a transaction that accounted for $500 million of third-quarter results. Production fell to the equivalent of 2.6 million barrels of oil a day from 2.74 million for the same period last year. Sales rose 30% to $64.4 billion.

“They are benefiting from higher crude prices and strategic asset sales,” said Gianna Bern, president of Brookshire Advisory & Research Inc., a Chicago-based risk-management consultant to the energy industry. “I’d expect production to bounce back in the near future.”

Oil and natural-gas production was less than the 2.63 million barrels a day forecast by Paul Cheng, a New York-based analyst at Barclays.

Chevron posted the largest year-on-year third-quarter profit increase among major international oil producers that have announced results.

Royal Dutch Shell’s 100% gain was second largest, followed by Exxon Mobil Corp., which reported a 41% increase, and Total, which boosted profit 13%. PetroChina Co. said net income rose 7.8%, while BP and ConocoPhillips saw profit declines.

Chevron was paid an average of $103 for each barrel of crude produced outside the U.S. during the quarter, up 47% from $70 a year earlier, the company said. International oil prices soared as growing demand bumped up against supply constraints in Libya. Chevron gets 74% of its crude outside the U.S., according to an Aug. 4 regulatory filing.

Profit from oil and gas sales climbed 74% to $6.2 billion, the company said. Refining profits more than tripled to $1.99 billion from $565 million.

Chevron shares rose 67 cents Friday to $109.64.