by Nate Wooley | October 10, 2012 2:44 pm
Chevron (NYSE:CVX), the second-largest American oil company, warned Tuesday that its Q3 profits will be much lower than in Q2. The firm blames the decline on a combination of damage from Hurricane Isaac and the aftermath of an Aug. 3 fire in its Richmond, Calif., refinery.
The California operation is expected to be offline until 2013. Overall, Chevron’s refinery output fell 92,000 barrels per day (bpd), reported Reuters, to 836,000 bpd.
Chevron’s U.S. production fell on the extraction side as well, with a decline of 19,000 bpd in oil and gas. That brings its production to 640,000 bpd for Q3. Most of that drop is due to the shutdown of rigs in the Gulf of Mexico following Hurricane Isaac.
Worldwide, Chevron’s production is down more than 100,000 bpd. A great deal of the overseas decline comes from planned maintenance in the U.K. and Kazakhstan.
Chevron’s stock has gained 12% in value over the past three months. Rival Exxon Mobil (NYSE:XOM) has grown 10% over the same time.
Chevron is due to report earnings Nov. 2.
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