Chevron Corporation (NYSE: CVX) reported a 36% jump in earnings for the first quarter of 2020 driven by the inclusion of a gain associated with the sale of upstream assets in the Philippines and favorable tax items attributable to international upstream. However, top-line fell by 11%.
The commodity prices fell significantly in March and the weakness continued into the second quarter, primarily due to reduced demand resulting from the COVID-19 pandemic. Financial results in future periods are expected to be depressed as long as current market conditions persist.
Chevron is further reducing its 2020 capital expenditure guidance by up to $2 billion to $14 billion. In addition, the company estimates that 2020 operating costs will decrease by $1 billion. This follows the previously announced suspension of share repurchases and the completion of additional asset sales.