Chevron (CVX) Q1 earnings report 2024

Chevron beat earnings expectations Friday, however its revenue fell from the year-ago interval as its refineries and worldwide gasoline enterprise confronted headwinds.

Here’s what Chevron reported for the primary quarter in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by LSEG: 

• Earnings per share: $2.93 adjusted vs. $2.87 anticipated
• Income: $48.72 billion vs. $50.66 billion anticipated

The oil main’s internet revenue declined 16% to $5.5 billion, or $2.97 per share, in contrast with the identical quarter a 12 months in the past when it earned $6.57 billion, or $3.46 per share. Excluding one-time objects, Chevron reported earnings of $2.93 per share, which beat Wall Road estimates.

Income of $48.72 billion fell from $50.79 billion a 12 months in the past and was in need of analyst expectations.

Chevron shares fell about 1% in premarket buying and selling on the information.

The corporate attributed declining earnings to decrease gross sales margins at its refineries and decrease pure gasoline costs consuming into earnings in worldwide manufacturing. Exxon confronted comparable points this quarter.

Oil costs have gained greater than 16% this 12 months and gasoline futures are up 31%, however the rally did little to elevate earnings given bother elsewhere within the power trade.

Pure gasoline costs have plummeted 37% this 12 months because of a provide glut. Retail and distribution margins for gasoline, or the distinction between the retail and refining costs, had been additionally decrease in February and March in contrast with the identical interval final 12 months, in line with the Vitality Info Administration.

Chevron’s refining enterprise within the U.S. noticed earnings plummet by greater than half to $453 million. Earnings in worldwide refining took a fair larger hit, falling almost 60% to $330 million. 

The U.S. oil and gasoline enterprise booked earnings of about $2 billion, a 16% improve over the prior-year interval because of increased gross sales quantity. Chevron produced 1.57 million barrels of oil and gasoline day by day within the U.S. for the quarter, a rise of 35%, or 406,000 bpd, from a 12 months in the past.

The oil main attributed the manufacturing features to robust output within the Permian and the Denver-Julesburg basins. 

Worldwide oil and gasoline earnings fell 6% to $3.2 billion as manufacturing fell by 39,000 barrels to 1.77 million bpd because of upkeep in Nigeria and discipline declines. Nonetheless, complete worldwide manufacturing elevated 12% to three.35 million bpd — its highest first-quarter output on file.

Chevron stated it’s assured its pending acquisition of Hess Corp. will shut in 2024, regardless of a problem from Exxon Mobil in arbitration court docket over rights in a joint working settlement for oil belongings in Guyana.

Chevron stated it expects the shareholder vote and the Federal Commerce Commissions request for info on the deal to be wrapped up within the second quarter.

Capital expenditures rose to $4.1 billion, a 37% improve over the $3 billion spent within the year-ago interval. The upper spending was on its oil and gasoline manufacturing and previous belongings from PDC Vitality after finishing its acquisition of the corporate final August.

Chevron nonetheless paid out $3 billion in dividends and repurchased almost $3 billion of its shares within the quarter, although its return on capital of 12.4% was decrease than the 14.6% in first quarter final 12 months.

Learn Chevron’s full earnings launch right here.