Chevron expects earnings drop in 3Q

Associated Press

NEW YORK (AP) — Oil giant Chevron says third-quarter earnings will be "substantially lower" than in the second quarter.

In its interim earnings update Tuesday, Chevron Corp. said it was hurt by issues including unfavorable foreign currency rates and weaker results from its refining and marketing operations.

U.S. production fell by 19,000 barrels of oil equivalent per day in the first two months of the quarter, largely because of Hurricane Isaac's impact. Isaac also disrupted refinery operations.

Charges for the quarter are expected to be higher than expected as well.

In the second quarter the San Ramon, Calif., company earned $7.2 billion, or $3.66 per share. Analysts forecast net income of $6.2 billion, or $3.08 per share, for the third quarter, according to FactSet.

Chevron will report its third-quarter results Nov. 2.