Chevron Q1 Profit Drops to $2.21B, Beats Estimates on $48.6B Revenue
Chevron’s first-quarter net profit fell to $2.21 billion ($1.11/share) from $3.5 billion ($2.00/share) a year earlier due to a $360 million legal reserve hit and $223 million in adverse currency effects. Adjusted earnings of $1.41/share and $48.61 billion revenue surpassed analyst forecasts despite hedging timing losses.
1. Q1 Financial Highlights
Chevron reported first-quarter net income of $2.21 billion ($1.11 per share), down from $3.5 billion ($2.00 per share) in the prior-year period, on revenue of $48.61 billion, exceeding analysts’ expectations.
2. Hedging Timing Impact
Volatility hedges put in place at the start of the year produced unfavorable estimated timing effects after geopolitical disruptions closed the Strait of Hormuz, delaying the recognition of gains and contributing to the profit shortfall.
3. Legal Reserve and Currency Effects
The quarter included a $360 million net loss tied to a legal reserve provision, while adverse foreign currency movements reduced earnings by $223 million, further pressuring reported results.
4. Adjusted Earnings Performance
On a pro forma basis excluding one-time items, Chevron delivered adjusted earnings of $1.41 per share, well above the 92 cents per share consensus, underscoring underlying operational strength.