Weaker oil prices ate into Chevron Corp’s first-quarter profits, while the second-largest U.S. oil company also took a hit from downtime at two of its three biggest U.S. refineries.
First-quarter net income fell 4.5% to US$6.18-billion, or US$3.18 per share, from US$6.47-billion, or US$3.27 per share, a year earlier. Analysts had expected US$3.08 per share, according to the average on Thomson Reuters I/B/E/S, and shares of Chevron rose by 0.4% in premarket trading.
Chevron Corp, the second-largest U.S. oil company, warned on Wednesday that third-quarter earnings would be lower than in the second quarter due to “significantly lower” earnings from its refining division as fuel margins were squeezed.
The company also said second-quarter earnings included foreign exchange gains of about $300 million, whereas it anticipated similarly sized losses for the third quarter.