Chevron Corp. (CVX) reported Friday first-quarter earnings that rose but revenue that fell from a year ago, as commodity prices fell sharply in March primarily because of reduced demand amid the COVID-19 pandemic. "Financial results in future periods are expected to be depressed as long as current market conditions persist," the energy giant said in a statement. The stock was little changed in premarket trading. Net income rose to $3.60 billion, or $1.93 a share, from $2.65 billion, or $1.39 a share, in the year-ago period. Sales fell 13.1% to $29.71 billion, while total revenue, which includes income from equity affiliates and other income, declined 10.5% to $31.50 billion. The FactSet consensus for earnings per share was 65 cents and for sales was $29.1 billion. Chevron said it was further reducing its 2020 capital expenditure outlook by $2 billion to $14 billion, and expects operating costs to decrease by $1 billion. The company previously announced that it was suspending stock repurchases and has completed additional asset sales. "Together these actions are consistent with our longstanding financial priorities: to protect the dividend; to prioritize capital that drives long-term value; and to maintain a strong balance sheet," said Chief Executive Michael Wirth. The stock has dropped 14.1% over the past three months through Thursday, while crude oil futures have tumbled 64.4% and the Dow Jones Industrial Average has declined 13.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 01, 2020 07:01 ET (11:01 GMT)
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