Chevron (NYSE:CVX) posted its quarterly earnings results late today and these figures were stronger than what Wall Street called for, but the company’s profit was down year-over-year, playing a role in CVX stock falling on Friday.
The San Ramon, Calif.-based energy business said that for its first quarter of its fiscal 2019, it brought in net income of $2.65 billion, marking a 27% decline year-over-year. This slide was caused in part to lower oil prices and weak profit margins in the company’s refining and chemicals business.
Nevertheless, Chevron’s earnings total did come in at $1.39 per share, ahead of the $1.30 per share that Wall Street projected in a Refinitiv poll of analysts. The company saw a 7% gain in its oil and natural gas production as its oil equivalent output surpassed 3 million barrels per day for the second consecutive quarter.
This increase can be attributed to the company’s rising volumes in its business at the Permian Basin fields in Texas and New Mexico, as well as Wheatstone in Australia. Chevron’s U.S. business experienced an earnings gain of $100 million to $748 million as international profits for producing oil and gas were down 12% to $2.38 billion.
The company’s expenses increased 64% to $726 million due to higher corporate charges and interest expenses, as well as the impact of foreign currency. Its revenue tallied up to $35.19 billion, down 5% year-over-year, while also missing the $38.43 billion that analysts predicted, per Refinitiv.
CVX stock is down about 0.7% on Friday following the company’s results.
