How Chevron’s 1Q17 Segmental Earnings Trended


Dec. 4 2020, Updated 10:52 a.m. ET

Chevron’s 1Q17 segmental earnings: Upstream

Chevron’s (CVX) earnings improved in 1Q17 compared to 1Q16. Its Upstream segment, which posted a loss in 1Q16, saw its earnings rise to ~$1.5 billion in 1Q17. CVX’s Upstream earnings rose due to a surge in international and domestic earnings. Its international operations benefited from a fall in operating costs and higher natural gas sales volumes.

The company’s US Upstream segment benefited from its lower depreciation and operating costs. Its earnings were also strengthened by a rise in domestic and international crude oil prices.

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Downstream earnings rise

Chevron’s (CVX) Downstream segment saw its earnings rise 26% YoY to $926 million in 1Q17. This increase was due to the rise in refining margins in the US segment in 1Q17 over 1Q16. Plus, CVX witnessed asset impairment charges in 1Q16, which were absent in 1Q17.

However, CVX’s International Downstream earnings were impacted by lower refined product margins in 1Q17 over 1Q16. Also, its refinery throughput was lower in CVX’s International Downstream segment due to turnaround activities at its refinery in Cape Town, South Africa.

Chevron’s peers’ segmental trends

Among Chevron’s peers, ExxonMobil’s (XOM) Upstream earnings swung to a profit of $2.3 billion in 1Q17, compared to a loss in 1Q16. CVX’s global peers Royal Dutch Shell (RDS.A) and BP (BP) could post higher Upstream segment earnings compared to 1Q16.

If you’re looking for exposure to integrated energy sector stocks, you might consider the iShares Global Energy ETF (IXC). This ETF has ~56% exposure to the industry.


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