Chevron swings to profit

US energy major Chevron, reported a $2.8 billion income during the first three months of 2017, compared with a loss of $725 million in 2016. 

“First quarter earnings and cash flow improved significantly from a year ago,” said Chevron’s chairman and CEO John Watson, adding that the company benefited from increasing crude oil prices.

The company’s average sales price per barrel of crude oil and natural gas liquids was $45 in first quarter 2017, up from $26 a year ago. The average sales price of natural gas was $2.39 per thousand cubic feet, compared with $1.32 in last year’s first quarter

Watson said that the company has further reduced its spending with operating expenses declining 14 percent from the first quarter in 2016. Chevron’s capital spending has also declined over 30 percent from a year ago.

“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,” Watson added.