American oil giant Chevron (CVX) has reported a first-quarter profit of $6.57 billion U.S. despite a plunge in crude prices.
The oil major said its net profit rose 5% to $6.57 billion U.S. or $3.46 U.S. per share in Q1. That was better than Wall Street consensus estimates for a flat profit at $3.38 U.S. per share, according to data from Zacks Investment Research.
Chevron attributed the rise in its Q1 profit to its oil refining business, where higher margins helped income grow five-fold to $1.8 billion U.S.
The company’s oil and gas production unit saw its net profit fall 25% in Q1 as prices for crude oil retreated.
West Texas Intermediate (WTI) crude oil is currently trading around $75 U.S. per barrel, down from more than $120 U.S. a barrel last June.
Chevron said it ended Q1 with $15.8 billion U.S. in cash, down 12% from a year ago.
The company’s capital spending in Q1 rose 55% from a year ago to $3 billion U.S.
Chevron has been increasing production in the U.S. while decreasing it elsewhere in the world. Total output fell 3% from a year ago to 2.98 million barrels of oil and gas equivalent per day in Q1.
The stock of Chevron has gained 3% in the last 12 months to trade at $166.95 U.S. per share
