Archive for October, 2011

Chevron reports drop in production

Chevron, the second-biggest oil company in the US by market capitalisation, followed the industry trend in reporting a drop in production even as its third-quarter earnings more than doubled on higher prices for crude oil and refined products.
Chevron’s global net oil-equivalent production was 2.6m barrels per day in the third quarter, down from 2.74m bpd in the same period last year, on maturing fields and maintenance-related downtime.

ExxonMobilBP and ConocoPhillips also noted production declines in the quarter, with only Royal Dutch Shell reporting a third-quarter rise, driven by its oil sands projects in Canada and gas in Qatar.

Replacing production is crucial to the growth profiles of the oil majors but all have been hampered by resource nationalism, ageing conventional oil fields and the high cost of developing unconventional resources.

Pepsi Profit Rises 4.1%, Higher Prices Help Mitigate Costs

PepsiCo Inc.’s executives expressed confidence Wednesday that higher prices on its snacks and drinks would stick, even as economic uncertainty constrains consumer spending in major markets.

PepsiCo showed it was able to build sale volumes in most of its business in the third quarter while it raised prices on sodas and snacks to try to defray a 21% increase in costs. Earnings rose 4.1% in the quarter and sales grew 9% excluding a major acquisition, with both results topping Wall Street estimates.

PepsiCo raised prices of single-serve bags of Frito-Lay chips and on sodas in the U.S. The consumer response to both has been better than, or as, expected, Chief Financial Officer Hugh Johnston said, a promising sign, given fears of further deterioration in consumer spending.

Read the full article here.

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