BAKU, Azerbaijan, May 17. Chevron has reported a significant decline in its U.S. downstream earnings for the first quarter of 2024, Trend reports.
The company earned $453 million in this sector, a sharp decrease from $977 million in the first quarter of 2023 and slightly down from $470 million in the fourth quarter of 2023. This decline is primarily attributed to lower margins on refined product sales and higher operating expenses, mainly resulting from planned shutdowns.
The decrease in refinery crude unit inputs played a crucial role in the reduced earnings, the producer explained. Inputs, including crude oil and other materials, fell by 6 percent from the same period last year, dropping from 931 mb/d in the first quarter of 2023 to 878 mb/d in the first quarter of 2024. This reduction is primarily due to a planned shutdown at Chevron's Pascagoula refinery in Mississippi. Additionally, there was a decrease from the 950 mb/d processed in the fourth quarter of 2023.
Despite this, Chevron managed to keep its refined product sales relatively stable. Sales remained flat compared to the previous year, with 1,248 mb/d in the first quarter of 2024, only a slight dip from 1,252 mb/d in the first quarter of 2023.
Meanwhile, according to the latest financial report, Chevron recorded earnings of $5.5 billion for 1Q2024, translating to $2.97 per share on a diluted basis. This marks a notable decrease from the $6.6 billion, or $3.46 per diluted share, reported in 1Q2023.