Chevron Reports Fourth-Quarter Profits Despite Decrease in Revenue
A Chevron gas station sign is shown on October 23, 2023 in Austin, Texas. – Brandon Bell, Getty Images
Chevron Reports Record Cash Distribution to Shareholders
Chevron, one of the leading oil companies in the United States, has announced a significant decrease in fourth-quarter profits compared to the previous year. Despite this decline, the company still managed to deliver a record amount of cash to its shareholders in 2023.
In 2023, Chevron distributed $23.6 billion to its investors, with $11.3 billion paid out as dividends and $14.9 billion used for share buybacks. This robust cash reward to shareholders showcases the company’s commitment to providing value to its investors, even in the face of challenging market conditions.
Details of Chevron’s Fourth-Quarter Performance
The oil giant’s profit for the fourth quarter declined approximately 40%, amounting to $21.3 billion, compared to $35.5 billion in 2022. This decrease was primarily influenced by impairment charges. Despite the impact on profits, Chevron’s financial stability allowed it to return cash to its shareholders.
The latest earnings report for the fourth quarter of 2023 presents the following key figures, with comparisons to Wall Street expectations:
- Earnings per Share: Chevron achieved an adjusted earnings per share of $3.45, surpassing Wall Street’s estimate of $3.21.
- Revenue: Chevron generated $47.18 billion in revenue, which fell short of the expected $51.62 billion.
Furthermore, Chevron recorded a 65% decrease in net income during the fourth quarter, amounting to $2.3 billion, or $1.22 per share, in contrast to $6.4 billion, or $3.33 per share, in the same period the previous year. This decline resulted from various factors, including impairment charges and obligations related to previously sold assets in the Gulf of Mexico.
However, with the exclusion of the impairment charges, Chevron reported an adjusted profit of $3.45 per share, surpassing Wall Street’s expectations.
Investor Reaction and Chevron’s Future Investments
Following the announcement, Chevron’s stock experienced a 1% increase in early trading, demonstrating investor confidence in the company’s long-term prospects.
The year 2023 witnessed significant fluctuation in crude oil prices due to factors such as a weakening Chinese economy and record oil production in the United States. Despite this volatility, Chevron achieved a production record of 3.1 million oil-equivalent barrels per day. Notably, its operations in the United States drove a 14% growth rate, which exemplifies Chevron’s commitment to capitalizing on domestic opportunities.
With a focus on shaping a sustainable future, Chevron increased its capital expenditures by nearly 16% for the quarter. The company invested in recently acquired PDC Energy assets and acquired a majority stake in the hydrogen fuel project developer, ACES Delta, indicating its dedication to developing alternative energy solutions.
