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Chevron Third-quarter profit and revenue beat expectations and it returned record cash to shareholders.
However, the oil major’s quarterly profit fell sharply compared with the same period last year due to lower profit margins on refined product sales, lower prices and a lack of favorable tax timing.
Driven by record production in the Permian Basin, Chevron produced 3.36 million barrels of oil equivalent per day in the quarter, a 7% increase from the third quarter of 2023.
What’s this Chevron The third-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $2.51, expected $2.43
- income: US$50.67 billion, expected to be US$48.99 billion
The stock rose 2.6% in pre-market trading after the report was released.
Chevron’s net income was $4.49 billion, or $2.48 per share, down 31% from $6.53 billion, or $3.48 per share, in the third quarter of 2023. at $2.51, solidly beating Wall Street’s expectations for the quarter.
Chevron’s revenue of $50.67 billion also beat Wall Street expectations, but was down 6% from $54.1 billion in the third quarter of last year.
The oil giant returned a record $7.7 billion to shareholders this quarter, including $4.7 billion in stock buybacks and $2.9 billion in dividends.
Chevron aims to streamline its portfolio, with asset sales in Canada, Congo and Alaska expected to be completed in the fourth quarter of 2024.
Chevron’s shares are essentially flat this year, underperforming the S&P 500 energy sector, which is up more than 6%. The company’s shares have struggled to rise amid uncertainty over the company’s pending $53 billion acquisition. Hess.
The Federal Trade Commission approved the deal but barred John Hess from joining Chevron’s board of directors.
Chevron remains mired in Exxon Mobilthe company claims to have pre-emptive rights to Hess Corporation’s lucrative oil assets in Guyana. If the arbitration court rules in favor of ExxonMobil, Chevron’s acquisition of Hess will not be completed.
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