Higher margins push Chevron higher in Q1
US major Chevron reported Q1 2023 earnings of $6.6bn on April 28, an increase from $6.3bn in the same period last year which it attributed to higher refined product margins, offset in part by weaker commodity price realisations.
Free cash flow fell to $4.2bn from $6.1bn, as capital expenditures rose to $3bn from $2bn in Q1 2022. Q1 earnings this year were also impacted by a $130mnn tax charge related to changes in the UK windfall tax.
“We’re delivering strong financial results and increasing cash returned to shareholders,” CEO Mike Wirth said. “The company’s return on capital employed has been greater than 12% for seven consecutive quarters, and the company returned $6.6bn to shareholders in the first quarter, an increase of 65% from last year.”
Natural gas production in the US averaged 1.7bn ft3/day, down from 1.8bn ft3/day in Q1 2022, while Chevron’s average realised natural gas price dropped to $2.58/’000 ft3 from $4.10/’000 ft3.
International gas production fell to 5.8bn ft3/day from 6.1bn ft3/day, while the average realised international gas price edged slightly higher, to $9/’000 ft3 from $8.87/’000 ft3.