Chevron (CVX) earnings Q1 2021 turn profit

Employees during a press visit to the first shale gas exploration site started by Chevron in Pungesti, Romania, in April 2014.

Mircea Restea | AFP | Getty Images

After a brutal year for the energy sector, Chevron reported a profit for the first quarter of 2021 as a rebound in oil prices boosted business activity. The company’s results were still well below pre-pandemic levels.

The oil giant said it made an adjusted 90 cents per share during the reporting period and had sales of $ 32.03 billion. Earnings per share were in line with expectations of analysts surveyed by Refinitiv, while revenue was slightly above expected estimates of $ 30.37 billion.

Net income was $ 1.377 billion, a 62% decrease from the previous year. For the last quarter, Chevron posted a loss of $ 665 million.

“Earnings have improved primarily due to higher oil prices as the economy recovered,” said chairman and CEO Mike Wirth in a statement.

He found that results were down on the previous year due to factors such as the downstream margin and volume effects of the pandemic, as well as the aftermath of the winter storm that hit the south in February.

Chevron’s oil equivalent production decreased 4% year over year to 3.12 million barrels per day. The company’s upstream operations in the United States earned $ 941 million in the first quarter, up from $ 241 million a year earlier when oil prices rebounded. Chevron’s average selling price per barrel of US oil was $ 48 compared to $ 37 last year.

Chevron said it will increase its dividend by 4%, another sign that the company is recovering from the pandemic outbreak.

“We maintained capital discipline and reduced investments by 43 percent compared to the previous year,” added Wirth.

Chevron’s shares fell 2.1% during premarket trading on Friday.

Exxon Mobil announced on Friday that it returned to profitability in the first quarter, beating estimates for the period.

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