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Chevron profits up but sales disappoint

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Date: Friday 02 May 2008

LONDON (ShareCast) - US oil company Chevron announced its biggest ever first quarter profit, surpassing analyst’ estimates in the process.

Chevron reported a net income of $5.17bn, or $2.48 a share, for the first three months of 2008, compared with $4.72bn, or $2.18 a share, in the first quarter of last year.

The earnings per share figures exceeded analysts’ forecasts of $2.41bn.

The earnings outperformance was achieved despite revenues coming in lower than the market had been expecting at $65.95bn ,versus analyst forecasts of revenue in the mid-seventies. First quarter revenue was 37% higher than the $48.23bn recorded a year earlier, reflecting the soaring price of oil, which has almost doubled in the last year.

However, the company said profits at its division which refines and sells petrol were sharply lower than last year, as the company met consumer resistance to price rises at the petrol pump. The division’s profit slumped to $252m from $1.6bn in the first quarter of 2007.

The shortfall was more than recovered by selling oil produced at its own oil fields, despite average daily production slipping by about 44,000 barrels a day to an average of 2.6m barrels of oil per day in the first quarter.