May 2, 2021
NEW YORK (AFP) – After a string of losses, ExxonMobil and Chevron on Friday both reported a return to profitability in the first quarter, bolstered by a significant jump in oil prices.
The results, which come amid a similar round of profits by Royal Dutch Shell and other petroleum giants, point to a much-improved demand outlook compared with last year, when oil prices tumbled midway through the first quarter as the coronavirus crisis shuttered large parts of the economy.
“Earnings strengthened primarily due to higher oil prices as the economy recovers,” said Chevron Chief Executive Mike Wirth.
Yet larger petroleum companies still face major challenges, including campaigns from activist shareholders at annual meetings next month over their response to climate change.
Earnings strengthened primarily due to higher oil prices as the economy recovers, Chairman and CEO Mike Wirth said in a statement.
He noted that results were down from a year earlier due to factors including downstream margin and volume effects from the pandemic, as well as the aftermath of the winter storm that battered the South in February.
Chevron s oil-equivalent production dropped 4% year over year to 3.12 million barrels per day. The company s upstream operations in the U.S. earned $941 million during the first quarter, up from $241 million a year earlier as oil prices recovered. Chevron s average sales price per barrel of U.S. oil was $48, up from $37 a year earlier.
Chevron posts a profit, raises dividend as oil price recovery lifts quarterly results
After a brutal year for the energy sector, Chevron reported a profit for the first quarter of 2021 as a recovery in oil prices boosted operations. The companyâs results were still far below pre-pandemic levels.
The oil giant said it earned an adjusted 90 cents per share during the period, with revenue coming in at $32.03 billion. EPS was in-line with what analysts surveyed by Refinitiv were expecting, while revenue was slightly ahead of the expected $30.37 billion estimates.
Net income stood at $1.377 billion, down 62% year over year. Last quarter, Chevron posted a $665 million loss.
Provided by Dow Jones
By Christopher M. Matthews Big oil companies returned to profitability during the first quarter as they recovered from the unprecedented destruction of oil and gas demand wrought by the coronavirus pandemic. Exxon Mobil Corp. reported $2.7 billion in net income Friday, its first quarterly profit since the pandemic erupted last spring, while Chevron Corp. reported $1.4 billion in first-quarter profit. The results were boosted by rising oil prices during the first months of 2021, as countries around the world soften coronavirus quarantines. The largest European oil companies, BP PLC, Royal Dutch Shell PLC and Total SE, all reported profits earlier in the week after enduring huge losses last year.