Proactive Investors - Major oil producers Chevron Corporation (NYSE:CVX, ETR:CHV), Exxon Mobil Corp (NYSE:NYSE:XOM, ETR:XONA), and Phillips 66 (NYSE:NYSE:PSX) all moved lower in early trade on Friday after reporting a drop in profits for the first quarter.
Profits took a hit from lower refining margins, which have continued to decline from their peak after Russia’s invasion of Ukraine in 2022, and lower natural gas prices, partially offset by higher volumes.
Chevron reported higher-than-expected earnings per share (EPS) of $2.93, above estimates of $2.87 but its net income was $5.5 billion was down 16% from $6.6 billion in the year-ago quarter.
Revenue was $48.7 billion, below the $50.7 billion expected.
Chevron’s shares traded 0.1% lower at $165.
Exxon, meanwhile, posted a 28% year-over-year decline in profits from $11.43 billion to $8.22 billion.
EPS was $2.06, below the consensus of $2.20, which sent Exxon shares 3.2% lower at $117.
Phillips 66 (NYSE:PSX), which traded down 4.6% at $150, posted adjusted earnings of $822 million, down from $1.97 billion in the year-ago quarter.
Adjusted EPS was $1.90, below Street estimates of $2.05.
“While our crude utilization rates were strong, our results were affected by maintenance that limited our ability to make higher-value products,” Phillips CEO Mark Lashier said.
“We were also impacted by the renewable fuels conversion at Rodeo, as well as the effect of rising commodity prices on our inventory hedge positions.”