Chevron stock fell on Friday as the oil major’s profit declined, hurt by the steep drop in oil prices this year.
U.S. crude oil prices have fallen about 18% this year as President Donald Trump’s tariffs are expected to weigh on demand at the same time OPEC+ plans to pump more supply into the market.
The oil major said it plans to repurchase $2.5 billion to $3 billion of its own stock in the second quarter, which is lower than the $3.9 billion it bought back in the first quarter.
Here is what Chevron reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.18 adjusted vs. $2.18 expected
- Revenue: $47.61 billion vs. $48.09 billion expected
Chevron’s net income declined more than 30% to $3.5 billion, or $2 per share, from $5.5 billion or $2.97 per share, in the year-ago period. Excluding one-time items, Chevron earned $2.18 per share, which was in line with Wall Street estimates.
Chevron’s U.S. production business posted a profit of $1.86 billion, a decline of more than 10% from $2.08 billion in the year-ago period on higher operating expenses and lower commodity prices.
The oil major’s U.S. refining business swung to a profit of $103 million after posting a loss of $348 million in the fourth quarter of 2024. The segment’s earnings, however, declined 77% from $453 million in the year-ago due to lower margins on refined product sales.
Chevron’s produced 3.35 million barrels per day in the quarter, largely flat compared to 3.34 million bpd in the year-ago period.
Capital expenditures declined about 5% to $3.9 billion, down from $4.1 billion one year ago.
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