Chevron’s Profit Grows 36% in Q1, Reaching $3.6 Billion Despite the Scenario

Chemical company Chevron, one of the world’s major companies in the energy sector, particularly in oil, had a 36% increase in first-quarter profits, earning US$ 3.6 billion. Despite the profit increase, the drop in oil prices due to social isolation from the Covid-19 pandemic caused Chevron’s revenue to decrease by about 10.5%, reaching US$ 31.5 billion.

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Recently, the oil company’s shares fell by 2.39% in pre-market trading on the Nyse (New York Stock Exchange), reaching a value of US$ 89.50.

Chevron, in its announcement regarding the first-quarter earnings report, stated: “Future financial results are expected to remain pressured as current market conditions persist.”

Compared to 2019, the oil company’s earnings per share increased by US$ 0.54. It was US$ 1.39 last year and reached US$ 1.93 this year. This result exceeded the expectations of analysts surveyed by FactSet, who predicted earnings per share of only US$ 0.65. Analysts also forecasted sales of US$ 29.1 billion in shares, which saw a decline of 13.1% in sales and reached US$ 29.71 billion.

Even with some positive results, the global giant also stated that it will decrease its planned investments for 2020 from US$ 14 billion to US$ 2 billion and that it still expects a reduction of US$ 1 billion in its operational costs.

Earlier, Chevron had already informed about the suspension of stock buyback programs and the completion of additional asset sales.

The oil company also stated today that the measures taken are in line with its financial priorities, which are to protect the dividend, allocate capital to long-term value assets, and maintain a healthy balance sheet.