By Jennifer Booton, FOXBusiness
24 August 2010
Despite tripling its second quarter profit last month, Chevron has since fallen nearly 2.46%, as it remains under the grip of a $27.3 billion lawsuit, the largest environmental damages lawsuit ever tried.
The company reported quarterly earnings last month of $2.70 a share on sales of $48.9 billion, beating estimates by 24 cents, though missing revenue expectations by $9.7 billion.
The strong results catapulted Chevron's stock to a 10-day winning streak, peaking on Aug. 10 at $79.32.
But the oil company has lost much of its gains over the past few weeks as it continues to fight a lawsuit in Ecuador that alleges Texaco, acquired by Chevron in 2001, wrecked portions of a jungle while drilling for oil in the 1970s and 1980s.
Chevron has fought the accusations, filing a petition earlier this month before the Provincial Court of Sucumbíos in Lago Agrio in Ecuador seeking dismissal.
The court’s decision, expected in the months ahead, may be appealed to Ecuador’s Supreme Court, and the energy giant has vowed to do so if it loses the case.
Chevron traded in the red Tuesday, down about 1.20% to $72.15 at 2:40 PM EST.