Reuters

(Reuters)

Chevron's 1Q Paints a Mixed Picture as Sales Lag Behind Estimates

By Energy FOXBusiness

Chevron (CVX) narrowly topped forecasts on Friday with a 4.2% rise in first-quarter profits, but the second-largest U.S. energy company’s revenue badly trailed Wall Street’s expectations.

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San Ramon, Calif.-based Chevron said it earned $6.47 billion, or $3.27 a share, last quarter, compared with a profit of $6.21 billion, or $3.09 a share, a year earlier. Analysts had expected EPS of $3.26.

Revenue inched up less than 1% to $60.7 billion, widely missing the Street’s view of $72.42 billion.

“We continued to post strong earnings and healthy cash flows,” CEO John Watson said in a statement. “This has enabled us to both reward our shareholders with a substantial dividend increase, our third in just over a year, and to reinvest in profitable growth projects to help meet rising global energy demand.”

Chevron’s upstream earnings rose to $6.17 billion from $5.98 billion despite a decline in global oil-equivalent production to 2.63 million barrels per day from 2.76 million.

Downstream profits came in at $804 million last quarter, down from $622 million, as refined product sales ebbed to 1.24 million barrels per day.

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Shares of Chevron were flat early Friday, and have been stagnant so far this year, off less than 0.2%.

The Chevron report comes a day after ExxonMobil (XOM), the world’s largest publicly traded energy company, posted a steeper-than-expected 11% decline in first-quarter profits.

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