Chevron Corp expects second-quarter profit to rise as asset sales in Chad and elsewhere offset spiking currency charges, the No. 2 U.S. oil company said on Thursday. Output from oil and natural gas wells rose in the United States but slipped internationally due to the shutdown of an Angolan liquefied natural gas project and repairs at its Kazakhstan operations.
Chevron, which operates in about 180 countries, expects foreign currency exchange charges to soar to as much as $300 million for the second quarter from $79 million in the first quarter. Still, the company sold assets in Chad and other regions during the period, and expects to record asset sale gains of as much as $600 million. Chevron expects its profit to “be higher” in the second quarter compared to the first quarter, when it posted net income of $4.51 billion, or $2.36 per share.
Analysts expect, on average, Chevron to post second-quarter earnings of $2.76 per share, according to Thomson Reuters I/B/E/S. Chevron’s average U.S. oil and natural gas production rose to 665,000 barrels of oil equivalent per day (boed) in April and May from an average 659,000 for the entire fourth quarter. Worldwide, output fell, with the company producing 1.90 million boed in April and May, up from 1.92 million boed in the entire first quarter.
Chevron is scheduled to report quarterly results on August 1. Its shares fell slightly to $129.95 in after-hours trading.