Oil giant Chevron Corp has beaten estimates for first-quarter profit as higher production volumes in the US helped offset a hit from weak natural gas prices and fuel margins.

The second largest US oil producer posted a profit of $5.5 billion in the quarter ended on March 31, down from $6.57 billion, or $3.46 per share from a year ago. Results beat consensus by 2 per cent as recent acquisitions bolstered oil and gas volumes.

Chevron said results were sustained by higher production brought by the acquisition of PDC Energy, Inc and sustained strong execution in the Permian and Denver-Julesburg (DJ) Basins.

Chevron said first quarter oil and gas production jumped 12 per cent, to 3.34 million barrels of oil equivalent per day (boepd).

Earnings from pumping oil and gas were $5.24 billion, up from $5.16 billion in the same period a year ago. But profits from producing petrol and chemicals fell sharply, to $783 million from $1.8 billion a year ago. Refining suffered from weaker margins and higher operating expenses, the company said.

It reported adjusted per share profit of $2.93 for the first quarter, beating analysts’ consensus estimate of $2.87.

Also, Exxon Mobil missed analysts’ estimates with a 28 per cent year-on-year drop in first quarter profits as weaker refining margins and lower natural gas prices offset volume gains.

Exxon, which is in the process of closing a $60 billion deal for top shale oil producer Pioneer Natural Resources, posted lower first-quarter earnings of $8.22 billion, down from an $11.43 billion net profit a year ago.

Earnings from oil and gas production fell 14 per cent on lower natural gas prices and refining tumbled 67 per cent on weaker fuel margins, mark-to-market derivatives, and higher maintenance costs. Its chemicals business, however, was a standout, with earnings more than doubling on lower input costs and higher margins, the company said. (THISDAY)

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