Oil giant Chevron returned to profit in the first quarter of 2017 due to cost cuts and increase in crude prices, versus a loss posted in the corresponding period of 2016.
The company on Friday reported earnings of $2.7 billion for first quarter 2017, compared with a loss of $725 million in the 2016 first quarter.
Included in the first quarter 2017 was a gain of approximately $600 million from the sale of an upstream asset. Foreign currency effects decreased earnings in first quarter 2017 by $241 million, compared with a decrease of $319 million a year earlier.
Sales and other operating revenues in first quarter 2017 were $32 billion, compared to $23 billion in the year-ago period.
Chairman and CEO John Watson, said: “We benefited from increasing crude oil prices and ongoing efficiencies being implemented across the company.”
Watson added: “Our operating expenses were reduced by about 14 percent from first quarter 2016 and our capital spending declined over 30 percent from a year ago.”
Watson further said: “Overall net oil-equivalent production in the first quarter increased 3 percent compared to the 2016 full year and we are on track to meet the 4-9 percent growth goal for 2017 before the effect of asset sales.”
The company’s worldwide net oil-equivalent production was 2.68 million barrels per day in first quarter 2017, compared with 2.67 million barrels per day in the 2016 first quarter.
Capital and exploratory expenditures in first quarter 2017 were $4.4 billion, compared with $6.5 billion in the corresponding 2016 period.
Offshore Energy Today Staff