Chevron Q1 Profit Drops 36.9% to $2.2B as $3B Derivative Hit
Chevron’s Q1 profit dropped 36.9% to $2.2 billion as $3 billion in timing effects on derivatives offset gains from oil’s rise above $100 per barrel. ExxonMobil’s CEO warns protracted Strait of Hormuz closure could send prices even higher.
1. Chevron Q1 Earnings Decline
Chevron reported first-quarter profit of $2.2 billion, a 36.9 percent drop year-over-year driven by accounting treatments.
2. Derivative Timing Effects
US accounting rules forced Chevron to recognize approximately $3 billion in timing losses on derivative contracts, offsetting benefits from oil’s rise above $100 per barrel and expected to reverse in future quarters.
3. Market Outlook and Hormuz Risk
CEO Mike Wirth described extreme uncertainty in the oil market, while ExxonMobil’s CEO warned that a prolonged Strait of Hormuz closure could trigger further crude-price spikes once commercial stocks and strategic reserves run down.