Chevron beats earnings estimates but profit falls on lower refining margins and natural gas prices

Chevron beat earnings expectations Friday, but its profit fell from the year-ago period as its refineries and international gas business faced headwinds.

Here is what Chevron reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

The oil major's net income declined 16% to $5.5 billion, or $2.97 per share, compared with the same quarter a year ago when it earned $6.57 billion, or $3.46 per share. Excluding one-time items, Chevron reported earnings of $2.93 per share, which beat Wall Street estimates.

Revenue of $48.72 billion fell from $50.79 billion a year ago and was short of analyst expectations.

Chevron shares fell about 1% in premarket trading on the news.

The company attributed declining profits to lower sales margins at its refineries and lower natural gas prices eating into profits in international production. Exxon faced similar issues this quarter.

Oil prices have gained more than 16% this year and gasoline futures are up 31%, but the rally did little to lift profits given trouble elsewhere in the energy industry.

Natural gas prices have plummeted 37% this year due to a supply glut. Retail and distribution margins for gasoline, or the difference between the retail and refining prices, were also lower in February and March compared with the same period last year, according to the Energy Information Administration.

Chevron's refining business in the U.S. saw earnings plummet by more than half to $453 million. Profits in international refining took an even bigger hit, falling nearly 60% to $330 million. 

The U.S. oil and gas business booked earnings of about $2 billion, a 16% increase over the prior-year period due to higher sales volume. Chevron produced 1.57