• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days e-truck insanity
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
Biden Administration's SPR Plans Derailed by Oil Price Surge

Biden Administration's SPR Plans Derailed by Oil Price Surge

The Biden Administration cancels planned…

Chevron Q4’s Earnings Underwhelm

Chevron (NYSE:CVX) reported on Friday a $2-billion windfall from the U.S. tax reform in Q4, but excluding this one-time benefit, its earnings per share missed by a mile analyst expectations, as refining margins started to weaken at the end of last year as oil prices rallied.

Including the tax benefit, Chevron reported earnings of $3.1 billion, or $1.64 per share for Q4 2017, compared with $415 million, or $0.22 per share, in Q4 2016. The corporation, however, did not report what its quarterly earnings were excluding the tax gain, leaving analysts initially puzzled about the comparison between the underlying earnings and Wall Street forecasts.

Excluding the tax benefit, Chevron’s EPS badly missed expectations—it earned $0.72 per share in Q4, compared to $1.22 per share expected by Thomson Reuters I/B/E/S.

In the upstream, Chevron reported earnings of $3.69 billion in its U.S. operations in Q4, compared to earnings of $121 million in Q4 2016, but the earnings jump was actually a Trump bump due to a $3.33-billion benefit from the tax reform. In the international upstream operations, Chevron posted earnings of $1.60 billion in Q4, up from $809 million a year ago, chiefly thanks to the higher crude oil prices.

In the downstream, U.S. earnings were $1.20 billion in Q4, but again—thanks to a $1.16-billion tax benefit. International downstream operations, however, took a hit, with lower margins sending earnings plunging to $84 million in Q4 2017 from $357 million a year earlier.

On the bright side, last year Chevron had its best year for oil and natural gas discoveries since 2011. The supermajor added around 1.54 billion barrels of net oil-equivalent proved reserves last year. The reserves additions—subject to final reviews—are equal to some 155 percent of the oil and natural gas volumes that Chevron produced in 2017. The largest additions came from the Permian Basin and the Gorgon Project in Australia.

Chevron shares were down 4.14% at 1:53 p.m. EST on the NYSE today, joining ExxonMobil (NYSE:XOM) whose shares were plunging nearly 6% at the same time, after Exxon also reported underwhelming earnings for Q4.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Frank Morris on February 03 2018 said:
    They made a lot of money, though had some stalling in downstream due to the storms. Sort of makes you wonder how analysts came up with their figure.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News