Chevron turns a profit but warns of pain ahead

Times Standard (Eureka) - - OBITUARIES -

Chevron turned a profit in the first quar­ter. But the com­pany warned its fi­nan­cial pic­ture is likely to be de­pressed in the fu­ture be­cause of re­duced de­mand caused by the coronaviru­s.

The San Ra­mon, Cal­i­for­nia-based oil pro­ducer brought in $3.6 bil­lion in prof­its, up 36% from the same time last year. CEO Michael Wirth says the growth was driven by mar­gins in its re­fin­ing busi­ness and in­creased pro­duc­tion in the Per­mian Basin.

But the boost was also driven by the sale of up­stream as­sets in the Philip­pines, fa­vor­able tax items and for­eign cur­rency ef­fects which to­gether to­taled $1.2 bil­lion.

Rev­enues were down 10% to $31.5 bil­lion.

The price of U.S. bench­mark crude has fallen nearly 70% since the start of the year, forc­ing oil com­pa­nies to reign in drilling plans. Chevron re­duced its cap­i­tal ex­pen­di­ture bud­get to as low as $14 bil­lion.

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