Chevron's Profit Falls Sharply, But Much Less Than Expected

Chevron Corp.'s stock rose 0.5% in premarket trade Friday, after the oil company reported a first-quarter profit that fell sharply from a year ago, but much less than expected, helped by the strength in the U.S. dollar. Earnings came in at $2.57 billion, or $1.37 a share, down from $4.51 billion, or $2.36 a share, in the year-earlier period. The FactSet consensus was for earnings per share of 79 cents. Chevron said foreign currency effects boosted earnings by $580 million, compared with a decrease of $79 million a year ago. Revenue declined to $34.56 billion from $53.27 billion, but beat the FactSet consensus of $26.5 billion. Production increased 3% during the quarter, while capital expenditures declined to $8.6 billion from $9.4 billion. "We're responding to the current price environment by capturing cost reductions, pacing new project approvals and further streamlining our portfolio as planned," said Chief Executive John Watson. The stock has slipped 1% year to date through Thursday, while the S&P 500 has gained 1.3%.