Chevron reports fall in earnings in fourth quarter of 2011

Energy company Chevron has reported in its interim update that earnings for the fourth quarter of 2011 are expected to be significantly below third-quarter 2011 results.

Upstream earnings are projected to be comparable with third-quarter results, while downstream earnings in the fourth quarter are expected to almost break even.

Lower margins and refinery input volumes, in addition to the absence of an asset sale gain, are expected to reduce downstream earnings significantly compared to third-quarter results.

Full third-quarter earnings included foreign exchange gains of almost $450m (£293.5m), compared to a loss anticipated in the fourth quarter.