ChevronTexaco Profits Drop on Lower Gas Prices

The company posted lower results but still beat analyst estimates for the quarter.

Author:: Michael Dunn
Publish date:: Apr 25, 2002 10:59 AM EDT

ChevronTexaco

posted big first-quarter drops in sales and earnings as lower oil and gas prices impacted its results.

The company said its first-quarter net income was $725 million, or 68 cents a share, down from $2.43 billion, or $2.29 a share, a year ago. Excluding merger costs and other one-time charges, the company earned $931 million, or 88 cents a share, down sharply from earnings of $2.22 a year ago.

The pro forma results came in well ahead of analyst estimates, as the consensus called for 70 cents a share, according to Thomson Financial/First Call.

Quarterly revenue fell 28% to $20.84 billion from $29.03 a year ago.

In a press release, the company said it remains optimistic for the longer term as its beginning to see signs of an economic recovery in many areas of the world. No specific guidance was offered.

Shares of Chevron Texaco were recently trading up 1.45% to $86.23 on the news after closing at $85.00 Wednesday.