Chevron Corp. (CVX) - Get Report posted better-than-expected first quarter revenues Friday despite an overall decline in production linked to the global coronavirus pandemic and the brutal winter storms in Texas.
Chevron said adjusted earnings for the three months ending in March came in at 90 cents per share, down 30.2% from the same period last year but largely in-line with the Street consensus forecast. Group sales, the company said, slipped 1.6% from last year to $31 billion but topped analysts estimates of a $30.36 billion tally. Worldwide net production fell 4% from last year, Chevron said.
West Texas Intermediate crude prices traded in a range of between $48.30 and $61.50 per barrel over the three months ending in March, largely in-line from the trading range over the first quarter of last year.
“Earnings strengthened primarily due to higher oil prices as the economy recovers,” said CEO Mike Wirth. “Results were down from a year ago due in part to ongoing downstream margin and volume effects resulting from the pandemic and the impacts of winter storm Uri.”
"As a result, free cash flow excluding working capital was $3.4 billion in the first quarter 2021, and the Board approved a 4% dividend increase that was announced earlier this week," he added. “We maintained capital discipline with capital spending down 43% from last year. We took action to advance a lower-carbon future by announcing plans with partners to develop carbon negative bioenergy and commercially viable, large-scale businesses in hydrogen.”
Chevron shares were marked 1.7% lower in early trading immediately following the earnings release to change hands at $105.10 each.