NEW YORK (Reuters) - Chevron Corp , the second-largest U.S. oil company, posted a 37 percent drop in quarterly profit, falling short of Wall Street forecasts, as steep losses at its refineries offset gains from higher oil prices and production.
Global refining margins have suffered in recent months as rising crude oil prices have driven up costs even as the weak economy has shrunk demand for gasoline and diesel fuel.
CHEVRON (CVX.NY)s fourth-quarter net profit fell to $3.07 billion, or $1.53 per share, from $4.9 billion, or $2.44 per share, in the same quarter a year before.
That fell far short of analysts' average forecast of $1.70 per share, according to Thomson Reuters I/B/E/S.
Revenue rose nearly 12 percent to $48 billion.
Chevron said earlier in January that fourth-quarter profit would be hit by the slump in its refining business, which saw margins fall to the lowest levels of the year.
The company's refining, marketing and transportation business lost $613 million in the quarter versus a year-ago profit of $2.1 billion.
Earlier this week, ConocoPhillips
Production at Chevron was 2.78 million barrels of oil equivalent per day in the quarter, up more than 9 percent from a year earlier.
The increase included approximately 135,000 barrels per day associated with the ramp-up at Agbami in Nigeria, which commenced operations in the third quarter of 2008, and expansion at Tengiz in Kazakhstan.
At Thursday's close, Chevron shares had shed 4.5 percent since the start of 2010, against a 3.6 percent decline in the Chicago Board Options Exchange index of oil companies <.OIX>.
Shares of Chevron rose less than 1 percent to $73.46 in premarket trade on Friday.
(Reporting by Matt Daily, editing by Dave Zimmerman)
