Chevron Corporation, has reported earnings of $1.4 billion ($0.72 per share – diluted) for first quarter 2021, compared with $3.6 billion ($1.93 per share – diluted) in first quarter 2020.
Included in the current quarter were pension settlement costs and legal reserves totaling $351 million. Foreign currency effects decreased earnings by $2 million. Adjusted earnings of $1.7 billion ($0.90 per share – diluted) in first quarter 2021 compares to adjusted earnings of $2.5 billion ($1.31 per share – diluted) in first quarter 2020.
Sales and other operating revenues in first quarter 2021 were $31 billion, compared to $30 billion in the year-ago period.
“Earnings strengthened primarily due to higher oil prices as the economy recovers,” said Mike Wirth, Chevron’s chairman and chief executive officer. “Results were down from a year ago due in part to ongoing downstream margin and volume effects resulting from the pandemic and the impacts of winter storm Uri.”
“We maintained capital discipline with capital spending down 43 percent from last year,” Wirth added. “We realized cost efficiencies from last year’s restructuring and the integration of Noble Energy.”
As a result, free cash flow excluding working capital was $3.4 billion in the first quarter 2021, and the Board approved a 4 percent dividend increase that was announced earlier this week.
“We took action to advance a lower-carbon future by announcing plans with partners to develop carbon negative bioenergy and commercially viable, large-scale businesses in hydrogen,” Wirth continued. The company also invested in developing new technologies for geothermal power, floating offshore wind turbines and green ammonia.
Additionally, the company announced an agreement to acquire all the publicly held common units representing limited partner interests in Noble Midstream Partners LP not already owned by Chevron and its affiliates in exchange for shares of common stock in Chevron. This transaction is expected to close in the second quarter 2021.