Chevron released the earnings results from its first fiscal quarter before opening bell this morning, posting earnings of $1.37 per share on $32 billion in revenue. Analysts had been expecting earnings of 79 cents per share on $26.5 billion in revenue. In the same quarter last year, the oil giant reported earnings of $2.36 per share on $51 billion in revenue.

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Key metrics in Chevron’s earnings report

Chevron management cited the decline in earnings for the first quarter to tumbling oil prices, which cut both sales and earnings in the oil giant’s upstream business.  They added that their response to the lower oil prices included cost reductions, pacing on approvals for new products and streamlining the company’s portfolio.

The company said they increased production by more than 3% during the first quarter and continue to hit important milestone on their developments. Chevron continues to expect to “deliver significant cash flow and production growth by 2017.”

Chevron’s U.S. earnings post loss

The oil giant reported that it products 2.68 million barrels per day in net oil equivalent, an increase from 2.59 million barrels in last year’s first quarter. Chevron said it ramped production in the U.S., Argentina, Bangladesh and benefitted from “entitlement effects” in some areas.

The company’s U.S. upstream operations posted a $40 million loss, compared to $912 million in earnings in the first quarter of last year. Chevron cited a sharp decline in crude realizations. Average price per barrel of crude and natural gas liquids was $43, a decline from $91 in last year’s first quarter. The company said the average price of natural gas was $2.27 per thousand cubic feet, a decline from $4.77 in the first quarter of last year. Chevron said in the U.S., it increased production to 699,000 barrels per day.

Chevron’s U.S. downstream operations saw earnings climb sharply from $422 million to $706 million. Refinery crude oil input increased to 918,000 barrels a day. Refined product sales rose 1% to 1.21 million barrels per day, while branded gas sales were flat with last year at 504,000 barrels.

Chevron sees profits rise internationally

The company’s international upstream operations saw $2.02 billion in earnings, compared to last year’s $1.38 billion. Internationally, the average crude and natural gas liquids price was $46 a barrel, compared to $99 in the same quarter last year. The natural gas average price was $5.01 per thousand cubic feet, a decline from last year’s $6.02 per thousand cubic feet. Chevron reported 1.98 million barrels per day, a a 2% year over year increase.

Chevron’s international downstream operation saw earnings rise from $288 million to $717 million. Refiner crude output increased to 782,000 barrels per day. Total refined product sales increased to 1.58 million barrels a day.