Chevron beats expectations but earnings fall back in first quarter
Idag, 13:34
(Alliance News) - Chevron Corp on Friday reported lower first quarter earnings reflecting temporary accounting charges linked to derivative contracts which are expected to unwind in the months ahead.
The Houston-based oil and gas firm said earnings declined 37% to USD2.21 billion in the three months to March from USD3.50 billion the year prior, primarily due to unfavourable timing effects of around USD2.9 billion.
In April, Chevron explained these are effects from derivatives and Lifo accounting, primarily impacting the company's Downstream segment. However, it expects the majority of these effects to unwind in future periods.
Excluding this, Chevron said earnings improved due to upstream production growth and higher refining margins.
Adjusted earnings fell 27% to USD2.79 billion from USD3.81 billion a year ago, or by 35% to USD1.41 from USD2.18 on an adjusted basis per diluted share. Adjusted earnings per share beat USD0.95 LSEG consensus.
Net income fell 35% to USD2.29 billion from USD3.51 billion the year prior, with total revenue of USD48.61 billion, up 2.1% from USD47.61 billion. Revenue came in below USD52.1 billion LSEG consensus.
Basic net income per share declined 44% to USD1.12 from USD2.01, or to USD1.11 from USD2.00 on a diluted basis.
Included in the quarter was a net loss of USD360 million related to a legal reserve, while foreign currency effects decreased earnings by USD223 million, Chevron said.
Upstream earnings rose USD3.91 billion from USD3.76 billion on year, with Downstream swinging to a loss of USD817 million from a USD325 million profit.
Cash flow from operations excluding working capital was USD2.5 billion compared to USD5.2 billion a year ago.
"Despite heightened geopolitical volatility and related supply disruptions, Chevron delivered solid first quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution," said Mike Wirth, Chevron chair & chief executive officer.
"Strong operating results in the United States, particularly following the integration of Hess, and continued growth in the Gulf of America and Permian Basin, drove higher production while maintaining financial flexibility," he added.
With said US refineries operated at record crude throughput in March, capital spending remains within guidance, and structural cost reductions are "firmly" on track.
The firm continues to "closely monitor developments in the Middle East," he added.
Chevron returned USD6.0 billion of cash to shareholders during the quarter, including USD2.5 billion share buybacks.
On Friday, it declared a quarterly dividend of USD1.78 per share.
Shares in Chevron were up 0.2% at USD193.60 in premarket trading in New York on Friday.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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Chevron beats expectations but earnings fall back in first quarter
Idag, 13:34
(Alliance News) - Chevron Corp on Friday reported lower first quarter earnings reflecting temporary accounting charges linked to derivative contracts which are expected to unwind in the months ahead.
The Houston-based oil and gas firm said earnings declined 37% to USD2.21 billion in the three months to March from USD3.50 billion the year prior, primarily due to unfavourable timing effects of around USD2.9 billion.
In April, Chevron explained these are effects from derivatives and Lifo accounting, primarily impacting the company's Downstream segment. However, it expects the majority of these effects to unwind in future periods.
Excluding this, Chevron said earnings improved due to upstream production growth and higher refining margins.
Adjusted earnings fell 27% to USD2.79 billion from USD3.81 billion a year ago, or by 35% to USD1.41 from USD2.18 on an adjusted basis per diluted share. Adjusted earnings per share beat USD0.95 LSEG consensus.
Net income fell 35% to USD2.29 billion from USD3.51 billion the year prior, with total revenue of USD48.61 billion, up 2.1% from USD47.61 billion. Revenue came in below USD52.1 billion LSEG consensus.
Basic net income per share declined 44% to USD1.12 from USD2.01, or to USD1.11 from USD2.00 on a diluted basis.
Included in the quarter was a net loss of USD360 million related to a legal reserve, while foreign currency effects decreased earnings by USD223 million, Chevron said.
Upstream earnings rose USD3.91 billion from USD3.76 billion on year, with Downstream swinging to a loss of USD817 million from a USD325 million profit.
Cash flow from operations excluding working capital was USD2.5 billion compared to USD5.2 billion a year ago.
"Despite heightened geopolitical volatility and related supply disruptions, Chevron delivered solid first quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution," said Mike Wirth, Chevron chair & chief executive officer.
"Strong operating results in the United States, particularly following the integration of Hess, and continued growth in the Gulf of America and Permian Basin, drove higher production while maintaining financial flexibility," he added.
With said US refineries operated at record crude throughput in March, capital spending remains within guidance, and structural cost reductions are "firmly" on track.
The firm continues to "closely monitor developments in the Middle East," he added.
Chevron returned USD6.0 billion of cash to shareholders during the quarter, including USD2.5 billion share buybacks.
On Friday, it declared a quarterly dividend of USD1.78 per share.
Shares in Chevron were up 0.2% at USD193.60 in premarket trading in New York on Friday.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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