Driven by soaring gasoline prices, ChevronTexaco Corp.’s first-quarter earnings climbed 33 percent, continuing the oil giant’s recent run of gushing profits. The San Ramon-based company said Friday that it earned $2.56 billion, or $2.40 per share, in the three months ended March, up from $1.92 billion, or $1.81 per share, at the same time last year. This year’s results outstripped the mean estimate of $2.02 per share among analysts surveyed by Thomson First Call.
With the fast start, ChevronTexaco is well on its way to improving on its performance in 2003 when the company earned $7.2 billion - more than it did in the previous two years combined. Investors were pleased. ChevronTexaco’s shares gained $2.03 to $92.38 during Friday’s trading on the New York Stock Exchange. The company’s stock is up by nearly 40 percent since the end of 2002.
ChevronTexaco chairman David O’Reilly expressed frustration at the backlash [over rising gasoline prices] during the company’s annual shareholders meeting earlier this week. Responding to a question, O’Reilly pointed out that gasoline prices have remained a relative bargain on an inflation adjusted basis during the past 50 years and openly wondered a recent government-mandated increase in milk prices hasn’t sparked much of a consumer outcry. |