Oil and gas supermajors Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) reported fourth-quarter and full-year 2012 results on Friday before the markets opened. Both companies beat bottom-line expectations but missed on the top-line, as production generally fell but downstream operations kicked into gear to provide an earnings boost.
Chevron reported fourth-quarter earnings of $7.2 billion, or $3.70 per diluted share, a 43.4 percent gain on the year-ago period and ahead of expectations for $3.04 per share. Sales and operating revenue for the quarter fell 3.4 percent to $56 billion, mainly due to lower crude oil volumes. For the quarter, earnings from upstream operations increased 19.5 percent to $6.8 billion. Downstream operations moved from a loss of $61 million in the fourth quarter of 2011 to gains of $925 million in the fourth quarter of 2012.
|4Q 2012||4Q 2011||Full-year 2012||Full-year 2011|
|Diluted EPS ($)||3.70||2.58||13.32||13.44|
|Upstream Earnings ($) in millions||6,858||5,737||23,788||24,786|
|Downstream Earnings ($) in millions||925||(61)||4,229||3,591|
“We’ve now led the industry in earnings per barrel for over three years,” commented John Watson, chairman and CEO. “In the downstream business, we completed a multiyear plan to streamline the asset portfolio,” he added.
Shares were up modestly, about half a percent, on Friday morning following the report. Meanwhile, Exxon Mobil edged lower…