Chevron reported its first-quarter 2025 earnings on Friday, revealing a significant drop in profits compared to the same period last year. The energy giant’s net income plummeted by over 30%, reaching $3.5 billion (or $2 per share), a stark contrast to the $5.5 billion (or $2.97 per share) recorded in Q1 2024. This decline is directly attributed to the substantial fall in oil prices, which have seen a roughly 18% decrease in 2025 so far.
Analysts had anticipated slightly higher revenue, projecting $48.09 billion compared to Chevron’s reported $47.61 billion. The adjusted earnings per share of $2.18 also fell short of some expectations. Despite the lower profits, Chevron’s global production saw a modest 4% increase, reaching 1.6 million barrels per day. Capital expenditures, however, decreased by approximately 5% to $3.9 billion, down from $4.1 billion in the previous year’s first quarter.
The company maintained its commitment to shareholder returns, distributing a total of $6.9 billion. This included $3 billion in dividends and $3.9 billion in share repurchases. The decrease in profitability is largely attributed to the ongoing impact of President Trump’s tariffs on oil demand, coupled with OPEC+’s increased oil production. These factors have created a challenging market environment for oil companies like Chevron.
The stock price reflected the less-than-stellar results, experiencing a decline following the earnings announcement. Investors are likely assessing the long-term implications of these lower profits and the uncertainty surrounding future oil prices. The situation remains dynamic, and further analysis is needed to fully understand the lasting impact on Chevron’s financial performance and its overall position in the energy market.
