Chevron Corporation reported a 36.37% drop in net profit for the first quarter of 2025, reaching $3.50bn, compared to $5.50bn a year earlier. Revenue also fell by 2.27%, amounting to $47.61bn, below the $48.25bn expected by FactSet analysts. The decline is attributed to lower refining margins, negative currency effects and reduced income from both upstream and downstream operations.
Results impacted by legal and tax charges
The oil company stated it incurred a net loss of $175mn related to a legal case and a tax charge in the United Kingdom. In parallel, foreign exchange effects led to an additional loss of $138mn. Excluding exceptional items, earnings per share stood at $2.18, slightly above the market expectation of $2.16.
Following the publication of the results, Chevron’s stock fell by 1.89% in pre-market trading on the New York Stock Exchange. Chairman and Chief Executive Officer Mike Wirth referred to “changing market conditions” while reaffirming the group’s strength in cash flow generation.
Stable production despite asset disposals
Chevron Corporation’s global production remained broadly stable. The negative impact of asset disposals carried out over the past twelve months offset growth recorded in several regions, including Kazakhstan (+20%), the Permian Basin (+12%) and the Gulf of Mexico (+7%).
In the latter region, the company began production from its Ballymore deepwater project. The development was completed on schedule and within budget. This project is part of a portfolio of investments expected to increase net daily production by 300,000 barrels of oil equivalent in the Gulf by 2026.
Strategic move around Hess Corporation acquisition
Chevron Corporation also acquired 4.99% of the capital of Hess Corporation, which it aims to purchase for $53bn. This proposed acquisition is currently subject to arbitration proceedings involving Chevron and ExxonMobil. The dispute concerns operating rights in the Stabroek Block oil field, located offshore Guyana. An initial ruling is expected in May, with a final arbitration decision scheduled within three months.
The drop in Hess stock price, from $163 in October 2023 to $129.79 in April 2025, allows Chevron to progressively acquire shares at a cost below its original offer. This move is part of a cost-cutting plan launched in 2024, which includes reducing the workforce by 15% to 20% by the end of 2026, targeting savings of between $2bn and $3bn.
