Chevron (CVX) reported its Q1 earnings on Friday, mirroring the analysts' estimates which foresaw a downturn in both revenue and profits compared to the same quarter last year. Chevron posted total revenue of $48.72 billion, slightly exceeding the Visible Alpha's aggregated analyst estimates of $48.65 billion. The company's profit was $5.50 billion translating to $2.97 per share, trailing behind analyst expectations of $5.53 billion and $2.98 per share.
The predicted year-over-year decline was attributed to sinking natural gas prices in recent times despite elevated oil prices, a consequence of a glut in supply. In their earnings release, Chevron also mentioned thinner refining margins than expected, contributing to the declining profits.
The statement from Chevron highlighted, "First quarter 2024 earnings saw a reduction compared to last year majorly due to squeezed margins on refined product sales and lower natural gas realization, though partially balanced out by elevated upstream sales volumes in the U.S."
Chevron further announced a dividend of $1.63 per share to be paid on June 10 to shareholders who are on the record as of May 17. Earlier in the year, the company had already increased its dividend to $1.63 from $1.51, having paid the Q1 dividend on March 11.
Even with a declining performance in Q1, analysts perceive the oil majors like Chevron and ExxonMobil (XOM), who revealed its earnings on Friday morning, to bounce back with boosted revenue and profits in the current quarter, assuming oil prices stay above last year's levels.
In the aftermath of its earnings revelation, Chevron saw a minor dip in its share value during premarket trading, despite a 1% increase to close at $165.28 on Thursday. The company's shares have swelled by almost 11% so far in the current year.