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Highest Profit In Eight Years Reported By Chevron Driven By Increasing Oil And Gas Prices

Highest Profit In Eight Years Reported By Chevron Driven By Increasing Oil And Gas Prices
Its biggest quarterly profits in the last eight years were posted by the oil and gas major Chevron Corp posted on Friday, driven by increasing prices for oil and gas prices and a rebound in demand for motor fuel that helped to inflate the company’s that refining margins.
The strong performance was reported by the company just a day after top executives of major oil firms were interviewed by lawmakers of the United States over the industry previously ignoring global climate change warnings.
Following the very deep production cuts that the global oil and gas industry experienced during the Covid-19 pandemic last year, gains from higher demand were partly reflected in the earnings reported by Chevron.
The company reported a net income of $6.11 billion while it has reported a loss of $207 million for the same quarter a year ago against sale revenues of oil that got the company money that was almost twice more of what it had generated for the same period a year ago, as well as from the gas that was produced in the US that was sold by the company at thrice the price. 
There was a 2 per cent surge in the shares of the company at $115.63 in pre-market trading and so far this year,  Chevron’s share price has gained more than a third in value.
The company also reported adjusted earnings per share of $2.96 which comfortably beat estimates of Wall Street of profit of $2.21 per share, according to Refinitiv IBES data.
The company also reported strong cash flow from its operations, which is a closely watched measure, and came in at $8.5 billion in the quarter.
"The best ever reported by the company,” said Chief Executive Michael Wirth in a statement referring to the cash flow of the company.
Wirth said that the over production of the company also increased partly because of the firm's acquisition of Noble Energy as well as higher production from OPEC partners. Production would have been even higher if the company did not have to implement shut-ins at Kazakhstan's giant Tengiz field for maintenance purposes. 
The company plans an increase of up to 3 per cent in oil and gas output through 2025.
While diverting from a shift into solar and wind power generation and investments, as made by a number of European oil companies, Chevron and US rival Exxon Mobil Corp. are now completely focused on oil and gas production.
Exxon is expected to report strong quarterly results later on Friday

Christopher J. Mitchell

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