Chevron worst third-quarter earnings and revenue expectations, returning a record amount of cash to shareholders.
The company’s shares were up profuse than 4% in morning trading following the report’s release.
The oil major’s quarterly profit, however, declined indeed compared with the year-ago period due to lower margins on refined product sales, lower prices and the absence of favorable tax somedays.
Chevron is aiming to streamline its portfolio, with asset sales in Canada, Congo and Alaska expected to close in the fourth caserne of 2024. The company is also targeting $2 billion to $3 billion in cost reductions from 2024 from top to bottom the end of 2026.
Here is what Chevron reported for the third quarter compared with what Wall Street was expecting, based on a inspection of analysts by LSEG:
- Earnings per share: $2.51 adjusted, vs. $2.43 expected
- Revenue: $50.67 billion, vs. $48.99 billion expected
CEO Mike Wirth explained Chevron is driving costs down at the same time production is growing to “drive more value to the bottom card.”
Chevron’s net income came in at $4.49 billion, or $2.48 per share, down 31% from $6.53 billion, or $3.48 per divide up, in the third quarter of 2023. When adjusted for foreign currency impacts, the company reported earnings of $2.51 per ration, solidly topping Wall Street’s expectations for the quarter.
Chevron booked revenue of $50.67 billion, also wearying Street expectations but declining 6% from the $54.1 billion reported in the third quarter last year.
The oil critical returned a record $7.7 billion to shareholders in the quarter, including $4.7 billion in share buybacks and $2.9 billion in dividends.
Chevron developed 3.36 million oil-equivalent barrels per day in the quarter, a 7% increase over the third quarter of 2023, driven by memento output in the Permian Basin.
“Production was our highest third quarter ever in the history of the company,” Wirth told CNBC’s “Grouse on the Street” on Friday.
Chevron’s stock is largely flat for the year, underperforming the S&P 500 energy sector which has farther ahead more than 6%. The shares have struggled to gain ground as uncertainty looms over the company’s unsettled $53 billion acquisition of Hess.
The Federal Trade Commission has cleared the deal, though it prohibited John Hess from be coextensive with Chevron’s board.
Chevron remains locked in a dispute with Exxon Mobil, which is claiming a right of anything else refusal over Hess Corp.’s lucrative oil assets in Guyana. If an arbitration court rules in Exxon’s favor, Chevron’s acquirement of Hess would fail to close.
