Chevron Q4 Profit Up 25%, But Misses Estimates

Integrated energy company Chevron Corp. (CVX) reported Friday that profit for the fourth quarter increased 25 percent from last year, reflecting 17 percent revenue growth amid higher realizations and higher margins on refined product sales. Adjusted earnings per share missed analysts’ estimates, while quarterly revenues topped it.

In the pre-market trade on the NYSE, CVX is trading at $184.55, down $3.24 or 1.73 percent.

For the fourth quarter, net income attributable to Chevron grew to $6.36 billion or $3.33 per share from $5.06 billion or $2.63 per share in the year-ago quarter.

The latest quarter’s results include $1.1 billion of international upstream write-off and impairment charges, and pension settlement costs of $17 million. Foreign currency effects decreased earnings by $405 million.

Excluding special items, adjusted earnings were $4.09 per share, compared to $2.56 per share in the prior-year quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $4.38 per share for the quarter. Analysts’ estimates typically exclude special items.

Total revenues and other income for the quarter increased to $56.47 billion from $48.13 billion in the same quarter last year. The Street was looking for revenues of $54.63 billion for the quarter.

Sales and other operating revenues were $54.52 billion, up from $45.86 billion in the year-ago quarter.

Chevron’s worldwide net oil-equivalent production was 3.01 million barrels per day in the quarter, down from 3.12 million barrels per day a year ago.

Chevron’s upstream segment earnings increased to $5.49 billion from $5.16 billion last year and its downstream segment earnings were $1.77 billion, sharply higher than $760 million in the year-ago quarter.

Earnings from U.S. upstream operations declined to $2.62 billion from $2.97 billion a year earlier. International upstream operations earned $2.87 billion, up from $2.19 billion a year ago.

U.S. downstream operations reported earnings of $1.18 billion, up from $660 million a year earlier. Earnings from international downstream operations surged to $591 million from $100 million a year earlier.

Worldwide capital and exploratory expenditures in quarter were $4.06 billion, compared to $2.75 billion in the prior-year quarter.

On Wednesday, the Board of Directors of Chevron declared a 6 percent higher quarterly dividend of $1.51 per share, payable on March 10, 2023, to all holders of common stock as shown on the transfer records of the Corporation at the close of business February 16, 2023.

The company’s board also approved a new $75 billion share repurchase program, effective on April 1, 2023, and does not have a fixed expiration date.

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