Categories Earnings, Energy

Chevron (CVX) likely to report weak Q4 earnings on Jan 31

Chevron Corporation (NYSE: CVX) is set to release its fourth-quarter 2019 earnings results on Friday before the market opens. The bottom line will be hurt by higher costs and expenses as well as lower revenues while the top line will be impacted by lower refined products, crude oil, and natural gas prices, and lower crude oil volumes.

Revenue for the upstream segment is derived primarily from the production and sale of crude oil and natural gas as well as the sale of third-party production of natural gas.

chevron stock oil rig
Image for representation Courtesy: Skeeze from Pixabay

Revenue for the downstream segment is derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils and other products derived from crude oil.

For the fourth quarter, the company expects production growth to be primarily driven by shale and tight assets as well as the continued ramp-up of Hebron. The capital guidance is set at $18-20 billion for 2020 and $19-22 billion for 2021 through 2023. The company remained committed to capital discipline and delivering leading returns for its shareholders.

Chevron is expected to lower its debt balance by bringing in non-US cash into the US. The year-end cash balances are anticipated to be $3-4 billion lower than the end of the third quarter. The company still expects to have a free cash flow positive next year.

Read: FuelCell Energy Q4 earnings review

Analysts expect the company’s earnings to drop by 25.10% to $1.46 per share and revenue will decrease by 8.80% to $38.64 billion for the fourth quarter. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters. The majority of the analysts recommended a “buy” rating with an average price target of $136.08.

For the third quarter, Chevron posted a 37% dip in earnings as lower crude oil and natural gas prices hurt the top line by 18%. The company experienced weaknesses in the upstream and downstream at both the US and international operations. The results offset a 3% increase in net oil-equivalent production.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

360 DigiTech (NASDAQ: QFIN) Q3 2021 Research Summary

The positive effects of widespread digitalization and e-commerce growth on China’s financial services industry became more pronounced during the pandemic as the movement restrictions drove more retail customers to online

Activision Blizzard (ATVI): Three reasons why this stock deserves to be on your radar

Shares of Activision Blizzard Inc. (NASDAQ: ATVI) were up 1.6% on Thursday. The stock has dropped 14% since the start of the year. The company has been in the news

IPO Alert: Here’s all you need to know about Remitly Global’s upcoming market debut

The emergence of technology-driven financial services is making people think beyond conventional banks when it comes to availing loans and transferring funds. In a move aimed at taking its business

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top