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By MICHAEL LIEDTKE
AP Business Writer
SAN RAMON, Calif. (AP) -- Chevron Corp.'s first-quarter profit soared 49 percent to $4 billion, joining the procession of U.S. oil companies to report colossal earnings as lawmakers consider ways to pacify motorists agitated about rising gas prices.
Chevron released its results Friday after two of its biggest rivals, ConocoPhillips and Exxon Mobil Corp., already provoked public outrage with similarly large first-quarter profits. Combined, the three oil companies earned $15.7 billion during the first three months of the year.
San Ramon, Calif.-based Chevron's net income for the three months ended in March translated into $1.80 per share, two cents above the average estimate among analysts polled by Thomson Financial. It compared to a profit of $2.7 billion, or $1.28 per share, in the same January-March period last year.
Revenue totaled $54.6 billion, a 31 percent increase from $41.6 billion last year.
Investors cheered the results as Chevron shares gained $1.22, or 2 percent, to $61.20 in early trading on the New York Stock Exchange.
If not for continuing production problems caused by Hurricanes Katrina and Rita last summer, Chevron said it would have made an additional $300 million -- an amount that would have generated the highest quarterly profit in the company's 127-year history.
As it was, the performance marked the fourth consecutive quarter that Chevron has earned at least $3.6 billion as the company continued to capitalize on oil prices that have climbed above $70 per barrel since the first quarter ended.
The run-up recently has pushed gasoline prices above $3 per gallon, much to the frustration of consumers straining to pay their bills and politicians looking to win votes in an election year.
As Congress discusses tax changes that threaten to crimp the industry's profits, oil executives have been emphasizing that their companies have been investing in projects that will eventually increase oil supplies -- something that could help lower prices.
Chevron raised its capital and exploratory budget by 76 percent in the first quarter to $3 billion. The company also it acquired a 5 percent stake in a joint venture that plans to build a refinery in Jamnagar, India that could process up to 580,000 barrels of oil per day. Chevron is considering boosting its stake in that refinery to 29 percent.
"Our company is in an excellent position to continue adding value for our stockholders and helping to satisfy the energy needs of the world economies," Chevron Chairman David O'Reilly said.
(Copyright 2006 by The Associated Press. All Rights Reserved.)
