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Oil And Gas Giant Chevron Misses Market Estimates For Fourth Quarter Profit


28/01/2022


Oil And Gas Giant Chevron Misses Market Estimates For Fourth Quarter Profit
Despite reporting a profit for the fourth quarter, Chevron Corp’s financial performance was lower than want the market was expecting, even though there has been a sharp rise in oil and gas prices during the quarter.
 
Chevron is the first major coil company to report quarterly results. The oil and gas giant reported adjusted quarterly earnings of $5.1 billion, or $2.65 a share, driven by profits generated from oil pumping business that surged by about five folds compared to the same period a year ago when the market was severely depressed because of the Covid-19 pandemic induced drop in global demand for oil and gas.
 
According to Refinitiv, analysts had expected a profit of $3.12 per share.
 
The stock price of the company surged to an all-time high as investors of the company expect that high oil prices will continue to drive home profits for the company. The stock price of the company was at $135.37 on Thursday which was higher than the previous high of $133.60 per share of the company that was attained about four years ago.
 
The firm said its share buybacks in the first quarter will be at the higher half of the $3 billion to $5 billion yearly range it forecasted last year. Chevron's dividend was increased by 6 per cent to $1.42 per share earlier this week.
 
In 2020, Chevron implemented the strategy of significantly cutting back on investing in new projects with the emergence of the Covid-19 pandemic to cut down costs of operations. That helped in a surge of profits even as there was a rebound in the prices of oil and gas globally. Compared to just $43 a barrel in the year-ago period, the benchmark price of oil averaged $79 per barrel last quarter.
 
An operating profit of $5.2 billion as reported by the company from its oil and gas producing business. That was higher than the $501 million that the company had clocked in the same period a year ago. But that number was lower than what analysts were expecting the company to achieve - at about $6.6 billion in operating profit.
 
During the fourth quarter of last year, the oil and gas production globally was at 3.12 million barrels per day which were 5 per cent lower than the comparable period a year ago. For the entire year of 2021, the net oil and gas production globally was at 3.1 million barrels per day, which was slightly higher than the previous year.
 
(Source:www.usnews.com)