Summary Box: Chevron 4Q profit down 3 pct.

AP News
Posted: Jan 27, 2012 11:43 AM
Summary Box: Chevron 4Q profit down 3 pct.

STRUGGLING REFINERIES: Rising crude prices cut into fourth-quarter profits at Chevron Corp.'s refineries, which must buy crude to make gasoline and other fuels.

WEAKER PRODUCTION: The San Ramon, Calif., company also had a tougher time pumping more oil, with production declines across its global operation. One of the biggest concerns for the company is its operation in Brazil, where an offshore oil leak put Chevron in the crosshairs of the Brazilian government. Regulators there forced Chevron to shut down one of its offshore production wells in December, and prosecutors are seeking $10.6 billion in damages.

BOTTOM LINE: Chevron reported a 3 percent drop in fourth-quarter profits. Net income was $5.12 billion, or $2.58 per share, compared with $5.3 billion, or $2.64 per share, in the same part of 2010. Revenue increased 11.9 percent to $60 billion.