Chevron turned its first profitable quarter since the global pandemic started last year, a further sign that the oil industry is recovering from the worst oil bust in a generation. 

The California oil major on Friday said it made $1.4 billion during the first quarter, compared with $3.6 billion in the same period a year earlier. First quarter revenue rose to $32 billion, up from $31.5 billion a year earlier. 

Chevron’s first-quarter profits fell by more than a quarter from a year ago as higher oil and gas prices were offset by weaker refining margins, production disruptions from the winter storm and pension settlement costs. 

“Earnings strengthened primarily due to higher oil prices as the economy recovers,” CEO Mike Wirth said in a statement. “Results were down from a year ago due in part to ongoing downstream margin and volume effects resulting from the pandemic and the impacts of winter storm Uri.”’

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Oil majors are buoyed by rising crude demand and prices with the rollout of COVID-19 vaccinations. The U.S. rig count grew 27 percent during the first quarter, and exploration and production companies added 4,300 jobs in March, according to the Texas Oil and Gas Association. 

Chevron said its average sales price for its crude and natural gas liquids was $48 a barrel in the first quarter, up from $37 a barrel a year earlier. Its average sales price for its natural gas was $2.15 per thousand cubic feet in the first quarter, up from 60 cents in the same period last year. 

Even as crude prices have recovered above $60 a barrel, Chevron said it will maintain capital discipline in an effort to woo back investors to the battered energy sector. The company’s capital budget during the first quarter fell 43 percent to $2.5 billion, compared with $4.4 billion during the same period a year earlier. 

Chevron said it took a $300 million financial hit from the winter storm because of lower oil and refinery production and repairs.