Shell and Chevron reports stronger than expected results in Q1

British oil giant Shell reported better-than-expected adjusted earnings of $7.7 billion for the first quarter, up from $7.3 billion reported in the previous quarter. Q1 was the fourth quarter in a row the company announced expansion in profits.

However, the company’s net income of $7.4 billion was down by 16% from 1Q 2023, and revenue of US$74.7billion again implied a decrease of 14% on a yearly basis.

Shell reported adjusted earnings of $1.6 billion for its Chemicals & Products division, also down on a yearly basis. The company raised its chemical sales volumes to 2.8 million in Q1 from 2.5 million in Q4 2023 while chemicals manufacturing plant utilization rates were lifted to 73% in Q1 from 62% in the previous quarter. The company aims to raise utilization rates to 80% in Q2.

Meanwhile, Chevron Corporation, the second largest US oil producer, announced an adjusted earnings of $5.5 billion for Q1 2024, marking the 9th consecutive month of earnings over $5billion. It also suggested a 12% increase from the previous quarter, smashing expectations, although it was down 16% from the same quarter last year.

The company also reported the highest oil production in Chevron’s history, up 12% from the previous year, which helped offset a hit from weak natural gas prices and fuel margins.

The profits from gasoline and chemicals segments dropped notably to $783 million from $1.8 billion a year ago. Refining suffered from weaker margins and higher operating expenses, the company said.