Oil Majors Report High Profits

Driven by the sustained high price per barrel of oil, oil majors Chevron and Amerada Hess today announced outstanding financial results for the second quarter. Chevron, the No. 2 U.S. oil company, posted second-quarter profits which more than doubled, matching analysts' expectations, thanks to stronger oil and natural gas prices. Second-quarter earnings excluding special items rose to $1.14 billion, or $1.75 a diluted share, from $484 million, or 73 cents a diluted share, in the year ago period, the company said. Meanwhile, Amerada Hess Corp. said lofty oil and natural gas prices resulted in sharply higher second-quarter earnings that surpassed analysts' expectations. The oil and gas company said earnings before special items rose to $202 million, or $2.24 per diluted share, from $77 million, or 86 cents per diluted share, in the same period last year. Analysts on average had forecast that Amerada Hess would earn $2.17 a share, according to First Call/Thomson Financial, which tracks estimates. Amerada Hess shares traded up 7/16 at 58-1/4 early Monday on the New York Stock Exchange. Amerada Hess said revenues hit $2.71 billion, up $1.18 billion, or 77 percent, over a year ago thanks in part to high crude oil and natural gas prices, which helped companies perform better industry-wide. The company also benefited from some of the highest gasoline prices in recent years, which gave a lift to its refining and marketing business.