Compared with earnings of $2.6 billion ($1.39 per share - diluted) in Q1 2019, Chevron Corporation reported earnings of $3.6 billion ($1.93 per share - diluted) for Q1 2020. Included in the current quarter was favorable tax items totaling $440 million attributable to international upstream and a gain of $240 million associated with the sale of upstream assets in the Philippines.
In Q1 2020, foreign currency effects increased earnings by $514 million. Compared to $34 billion in the year-ago period, sales and other operating revenues in Q1 2020 were $30 billion. Driven by increased Permian production and downstream margins, Q1 earnings were up from a year ago.
Primarily due to reduced demand resulting from the COVID-19 pandemic, commodity prices fell significantly in March and the weakness continued into Q2. As long as current market conditions persist, financial results in future periods are expected to be depressed.
Chevron’s 2020 capital expenditure guidance is further reduced by up to $2 billion to $14 billion. The 2020 operating costs will decrease by $1 billion, based on the company’s estimate. This follows the completion of additional asset sales and the previously announced suspension of share repurchases.
Down from $48 in Q1 2019, the company’s average sales price was $37 in Q1 2020 per barrel of crude oil and natural gas liquids.
