HOUSTON (Reuters) - Chevron Corp <CVX.N> reported a drop in quarterly profit on Friday that still beat expectations as cost cuts in the company's U.S. oil production division helped mitigate some of the impact of low crude prices <CLc1>.
The company posted a third-quarter net income of $1.28 billion, or 68 cents per share, compared with $2.04 billion, or $1.09 per share, in the year-ago period.
Excluding one-time items, Chevron earned 49 cents per share during the quarter. By that measure, analysts expected earnings of 37 cents per share, according to Thomson Reuters I/B/E/S.
Earnings at Chevron's upstream arm, which produces oil and natural gas, jumped more than sevenfold as costs in the United States dropped and tax expenses fell.
- PHOTOS: New art and old relics at Mickey Mouse's NYC gallery 25 Pictures
- PHOTOS: See Yes on 3 supporters react to historic transgender rights Question 3 win 11 Pictures
Chevron's refining arm saw profit drop more than 50 percent as margins dropped both within and outside the United States.
Production fell about 1 percent to 2.5 million barrels of oil equivalent per day.
Shares of Chevron rose 0.6 percent to $100.51 in premarket trading.
(Reporting by Ernest Scheyder; Editing by Bernadette Baum)