NEW YORK Ė Chevron Corp., the United Statesí second-largest oil company after ExxonMobil, on Friday reported net income of $2.6 billion in the first quarter, down 43 percent from the same period of last year, a result attributable to the sharp drop in global crude prices.
The San Ramon, California-based supermajor posted revenues totaling $34.6 billion in the first quarter, a decline of 35 percent relative to the $53.3 billion reported in January-March 2014.
The company partially offset those lower revenues, however, by bringing its total costs and other deductions down to $31.7 billion, compared to $45.3 billion in the first quarter of 2014.
Chevron reported production of 2.68 million barrels per day of oil equivalent from its worldwide operations, up 3.5 percent from January-March 2014.
But revenues plunged because the price of the United Statesí benchmark crude, WTI, fell from $101.58 at the end of the first quarter of last year to $47.60 on March 31, 2015, amid a supply glut.
CEO John Watson said the company was responding to the price scenario by reducing operating costs, moving ahead with the approval of new projects and rationalizing its portfolio.
Chevronís upstream earnings were clobbered by the lower oil prices, coming in at $1.6 billion in the first quarter, down 64 percent from a year earlier.
Downstream earnings, however, doubled from $710 million in the first quarter of 2014 to $1.4 billion in the first quarter of this year, as refining margins were given a big boost by the plunge in oil prices.
Chevronís shares were down about 2.3 percent in midday trading on the New York Stock Exchange.