ChevronTexaco, the second largest North American oil group, has said that second quarter earnings fell by eighty one percent after energy prices slumped and a $531 million reduction in the value of its investment in Dynegy.
Net income declined to $407 million, or 39 cents a share, compared with estimated combined earnings of $2.11 billion, or $1.99, in the year-ago quarter, the company said in a statement. Revenue fell by almost a sixth to $25.3 billion from $29.7 billion.
ChevronTexaco, created from Chevron's $45.8 billion purchase of Texaco last year, slashed the value of its 27 percent stake in Dynegy after shares of the energy trader tumbled. The San Francisco-based company also made less money producing energy as natural-gas prices dropped by in the US market by 22 percent.
“Dynegy continues to be a problem,” said Tim Ghriskey, a fund manager with Ghriskey Capital, ”Trying to prop up Dynegy in this environment isn't the best strategy.”
Russia has left the list of 33 largest holders of US government bonds, after the country disposed of at least a third of remaining bonds