Earnings were US$3.6 billion over $2.6 billion the same time a year ago and sales and operating revenue were $30 billion and over $34 billion in the first quarter of 2019.

 

It also sold a Philippines project for US$240 million in the quarter currency exchanges also increased earnings by $514 million.

 

In April after the reporting period it also sold an asset in Azerbaijan last for $1.36 billion.  

 

"First quarter earnings were up from a year ago," CEO Michael Wirth said.

 

This was "driven by downstream margins and increased Permian production. However, 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."

 

Overall profit was up but this was largely from its downstream sector, its upstream sector reported a fall from $748 million to $241 million year-on-year.

 

Downstream profit more than doubled over 12 months from $217 million to $450 million and it said its refinery crude oil input in first quarter 2020 increased 12%to 965,000 barrels per day from the previous year largely thanks to the acquisition of the Pasadena refinery in Texas.

 

The company's average sales price per barrel of crude oil and natural gas liquids was $37 in first quarter 2020, down from $48 a year earlier. The average sales price of natural gas was $0.60 per thousand cubic feet in first quarter 2020, down from $1.64 in last year's first quarter," it said.

 

Production was up 6% to 3.24 million barrels of oil equivalent per day however it plans to cut production by 200,000boepd to 300,000boepd this month and between 200,000boepd-400,000boepd next month.

 

"First quarter unconventional net oil-equivalent production in the Permian Basin was 580,000 barrels per day, representing growth of 48% compared to a year ago," it said.

 

It announced further capital spend cuts of $2 billion, bringing the total down to $14 billion announced for the year over prior guidance of $20 billion. It announced a 20% cut to spending in March, or by $4 billion, with production and spend cuts focussed on the Permian, with a spend reduction of 50%.

 

Chevron rigs in the area are down to five.

 

Last year Chevron made an offer for Anadarko Petroleum in a move to shore up its Permian footprint or give it a larger footprint in the prolific area but bowed out after a competing proposal from Occidental Petroleum of US$38 billion. Chevron took home a $1 billion break fee.

 

"I think as we begin to see things move forward, and economies begin to pick up again, demand will gradually return," CEO Mike Wirth told CNBC.

It will be a "very, very tough quarter."