Chevron Soars on Refining Margins Despite War Disruptions
Chevron's downstream segment saw massive losses in the first quarter of 2026 due to disruptions caused by the Iran war, but its CFO has revealed that this loss was largely a timing issue. According to Eimear Bonner, Chevron planned for the price spike and borrowed $4.6 billion to cover the gap while maintaining shareholder dividend payments.
The company's downstream segment lost $817 million in the first quarter, but by the second quarter, it had earned $4.87 billion. This was largely due to increased refining margins and higher crude prices. The Brent price averaged $104 in the second quarter, up from $81 in the first quarter.
Chevron's CFO emphasized that planning is key, rather than predicting market fluctuations. She highlighted two key levers that influenced the company's results: the Strait of Hormuz's impact on oil prices and refining capacity lost to Ukrainian strikes on Russian plants.
The company also reported a significant increase in upstream earnings, rising $4.27 billion from the first quarter to the second. Downstream earnings rose $5.69 billion during the same period.