Chevron Q1 Earnings Beat Estimates Despite Profit Drop

Chevron Corporation reported first-quarter earnings that exceeded Wall Street expectations on Friday, driven by higher oil prices amid disruptions from the U.S.-Israeli conflict with Iran, though net profit fell due to accounting timing effects in its downstream operations.

The company posted adjusted earnings of $1.41 per share, surpassing the consensus estimate of about $0.95, according to LSEG data. Net income totaled $2.2 billion, or $1.11 per diluted share, down from $3.5 billion, or $2.00 per share, in the year-earlier period. Chevron attributed the decline largely to roughly $2.9 billion in unfavorable timing effects from derivatives mark-to-market losses and inventory accounting, which the company expects to reverse by about $1 billion in the second quarter.

Upstream earnings, Chevron's largest segment, rose 4 percent year over year to $3.9 billion, fueled by elevated crude prices. Brent crude climbed significantly during the January-to-March period after the conflict began on February 28, with shipping through the Strait of Hormuz nearly halted, tightening global supplies and pushing prices up as much as 50 percent. Chevron's production exposure in the Middle East...