{"id":113252,"date":"2021-04-30T12:44:09","date_gmt":"2021-04-30T12:44:09","guid":{"rendered":"https:\/\/fin2me.com\/?p=113252"},"modified":"2021-04-30T12:44:09","modified_gmt":"2021-04-30T12:44:09","slug":"chevron-profit-drops-on-weaker-refining-margins-storm-hit","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/chevron-profit-drops-on-weaker-refining-margins-storm-hit\/","title":{"rendered":"Chevron profit drops on weaker refining margins, storm hit"},"content":{"rendered":"

HOUSTON (Reuters) -Chevron Corp\u2019s first-quarter profit fell 29% from the same period a year ago as gains from oil and gas prices were undercut by weaker refining margins, production losses and the impact of an asset sale that benefited results last year.<\/p>

FILE PHOTO: A Chevron gas station sign is seen in Del Mar, California, April 25, 2013. Chevron will report earnings on April 26. REUTERS\/Mike Blake<\/figcaption>

Oil companies are generally enjoying a recovery in energy prices, up at least a third this year, after the pandemic hammered demand at the start of 2020. Chevron and its peers slashed spending, paving the way for several firms to post sharply better results.<\/p>\n

But as European rivals topped forecasts, Chevron\u2019s earnings declined on winter storm production losses, weaker margins and the absence of asset and tax items that benefited year-ago profit.<\/p>\n

\u201cResults 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,\u201d said Michael Wirth, Chevron\u2019s chief executive officer.<\/p>\n

A U.S. winter storm that halted some output cost $300 million in lost production and repairs, said finance chief Pierre Breber. \u201cThat\u2019s lost production in the Permian Basin and lost production in refining and chemicals,\u201d he said.<\/p>\n

Chevron, the second-largest U.S. oil producer, reported a profit of $1.72 billion, or 90 cents per share, compared with $2.45 billion, or $1.31 per share, a year earlier. Year-ago results included about $680 million in asset sales and favorable tax items.<\/p>\n

Net profit was $1.4 billion, or 72 cents a share, down from $3.6 billion, or $1.93 cents a share, a year earlier.<\/p>\n

Shares dipped 2.7% to $104 in premarket trading on Friday.<\/p>\n

Chevron\u2019s cash flow from operations, at $4.2 billion, was more than $1 billion below Wall Street estimates, according to Refinitiv IBES data. Its expenses for debt costs, employee pensions and benefits more than doubled to $978 million.<\/p>\n

Weaker-than-expected cash generation \u201cleft a slightly higher net debt position than expected,\u201d of $38.3 billion, said analyst Biraj Borkhataria at RBC Europe Limited.<\/p>\n

While Chevron boosted its dividend this week, \u201cinvestors will need to be patient\u201d for share repurchases, Borkhataria said.<\/p>\n

The weaker earnings contrasted with those at BP , Royal Dutch Shell and Total , which reported results that topped year-ago levels. BP nearly tripled earnings while Total posted a 69% gain.<\/p>\n

Chevron\u2019s refining eked out a $5 million profit, down from $1.1 billion a year ago, as the pandemic continued to mute demand for jet fuel, diesel and gasoline, and the winter storm hurt U.S. operations.<\/p>\n

Earnings from oil and gas production fell 20% despite price gains as non-U.S. operations suffered from declining volumes, foreign currency impacts and the absence of an asset sales gain. The unit benefited from higher oil volumes from the acquisition of Noble Energy in October.<\/p>\n

Chevron said capital spending for the first quarter was $2.5 billion, down from $4.4 billion in the same period last year.<\/p>\n

The company will restrain spending this year, including in U.S. shale. \u201cThe stock markets are not sending a signal to us or our sector to increase capital,\u201d Breber said.<\/p>\n

Chevron is looking toward a \u201csustained global recovery\u201d before increasing activity, Breber said, adding that OPEC and allies are easing their oil production curbs.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

HOUSTON (Reuters) -Chevron Corp\u2019s first-quarter profit fell 29% from the same period a year ago as gains from oil and gas prices were undercut by […]<\/p>\n","protected":false},"author":3,"featured_media":113251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nChevron profit drops on weaker refining margins, storm hit - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/chevron-profit-drops-on-weaker-refining-margins-storm-hit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chevron profit drops on weaker refining margins, storm hit - Fin2me\" \/>\n<meta property=\"og:description\" content=\"HOUSTON (Reuters) -Chevron Corp\u2019s first-quarter profit fell 29% from the same period a year ago as gains from oil and gas prices were undercut by [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/chevron-profit-drops-on-weaker-refining-margins-storm-hit\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-30T12:44:09+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/04\/Chevron-profit-drops-on-weaker-refining-margins-storm-hit.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/chevron-profit-drops-on-weaker-refining-margins-storm-hit\/\",\"url\":\"https:\/\/fin2me.com\/markets\/chevron-profit-drops-on-weaker-refining-margins-storm-hit\/\",\"name\":\"Chevron profit drops on weaker refining margins, storm hit - 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