Soaring oil and gas prices have boosted Chevron’s profits, and US energy has been filled with cash.
The company reported fourth-quarter net income of $ 5.1 billion on Friday. Loss of $ 665 million At the same time a year ago, the market recession caused by the coronavirus pandemic lost the finances of the gutter oil and gas industries.
However, profits fell short of Wall Street’s forecast of $ 5.9 billion, according to estimates compiled by S & P Capital IQ. Chevron’s share price fell by about 4% due to a mistake.
Despite rising profits, Jeffreys analysts called the results “overall weak performance,” especially in the company’s international production business, where revenue from selling liquefied natural gas was lower than expected.
Chevron’s share price is still up nearly 9% in 2022 after reaching a record daytime high of about $ 137 per share on Thursday. They have been supported by rising energy prices.Brent crude oil price Break through $ 90 a barrel This week is the first time since 2014.
A choir of Wall Street analysts argue that oil prices are likely to reach $ 100 a barrel in the coming months amid supply delays and the risk of Russia’s invasion of Ukraine. Disrupt the market..
“It’s clear that we’re upcycling and it happens when demand grows faster than supply,” Chevron Chief Financial Officer Pierre Braver said in an interview Thursday. “There are also geopolitical uncertainties and risks on the market.”
According to the company, it generated a record $ 21.1 billion in free cash flow in 2021, 25% above the previous year’s high in 2018. Although free cash flow surged as prices rose, Chevron kept capital investment at a much lower level than in recent years.
“We are making far more cash than we are making even $ 100. [a barrel]”Braver said.
Even if the supply of crude oil is delayed Rapid increase in fuel demandChevron and other oil companies continued to be under pressure from investors to limit capital investment and return cash inflows from rising prices to shareholders rather than new products.
The company announced on Wednesday that it would increase its quarterly dividend by 6% to $ 1.42 per share. He said this year’s share buyback program will be capped at $ 3 billion to $ 5 billion previously offered.
Nonetheless, Braver said operations in the Permian Shale Basin in western Texas will be a major driver of production growth, increasing the company’s production by 2 to 5 percent this year.
“We are back on a growth trajectory very similar to what looked like before Covid,” he said of the company’s Permian business.
Chevron and rivals U.S. super major Exxon Mobil During this month’s sold-out of the S & P 500 Index, it stood out in the market.
In a December filing with regulators, Exxon previewed the results, stating that rising oil and gas prices would increase production profits by $ 1.9 billion in the third quarter. The company will report earnings on Tuesday.
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Chevron reports $5bn profit amid surging crude and natural gas prices Source link Chevron reports $5bn profit amid surging crude and natural gas prices
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