Chevron Corporation (NYSE:CVX) earnings for the third quarter declined to $5.3 billion, or $2.69 per diluted share, from $7.8 billion, or $3.92 per diluted share during the same period last year, due to oil field maintenance, which reduced the oil and gas production of the company. The foreign currency fluctuations also hurt the company’s third quarter financial performance, according to John Watson, chairman and chief executive officer of Chevron.

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The company reported $56 billion in sales and other revenue during the past three months, from July to September. The result is lower than the $61 billion sales and revenues during the same period in 2011.

During the third quarter, Chevron Corporation (NYSE:CVX)’s earnings in its upstream business decreased from $6.20 billion in 2011, to $5.13 billion, and the downstream segment declined from $1.98 billion to $689 million. The company reported earnings losses of $575 million in all other areas for the past three months, compared with the profit losses of $358 million in 2011. According to the company, its earnings declined by $293 million, due to foreign currency changes. During the same period last year, changes in foreign currency added $449 million in the company’s earnings.

According to Chevron Corporation (NYSE:CVX), its net oil equivalent production worldwide decreased to 2.52 million barrels per day during the past three months, from 2.60 million barrels per day during the same period a year ago.

Chevron’s average sales price for oil and natural gas liquids during the third quarter was $98 per barrel, $5 dollars lower than the average sales price of $103 per barrel during the same period in 2011.

The company posted $575 million net charges for the past three months, compared with its $358 million net charges during the same quarter last year. According to the company, the increase was due to higher employee compensation and benefits, corporate tax items, and other charges.

Chevron Corporation (NYSE:CVX) incurred $22.7 billion in capital and exploratory expenditures for the past nine months in 2012.

According to Chevron Corporation (NYSE:CVX), its upstream operations improved, particularly in Australia, as the company completed its acquisition of additional interests in the Clio and Acme fields in the Carnarvon Basin. The company also announced its natural gas discoveries in Australia- the Satyr-2 and Satyr-4.

The company acquired 55 percent interest and operatorship in two deepwater exploration blocks in Sierra Leone, and in the United States, Chevron Corporation (NYSE:CVX) acquired additional acreage in the Delaware Basin, in New Mexico.

In a statement, Watson said, “We continue to progress our upstream projects. Gorgon in Australia, and Bigfoot and Jack/St. Malo in the deepwater Gulf of Mexico is all over 50 percent complete. The Wheatstone Project in Australia is also off to a good start. Each of these projects is expected to deliver significant future value for our shareholders.”

Watson also added that the company is working on repositioning its downstream business toward high growth chemical and specialty products. The company also plans to sell its noncore assets.

Analysts from Simmons & Co. said the primary culprit behind Chevron’s earnings miss was the downstream business segment of the company.