The San Ramon, California-based energy services giant reported sales of $40 billion during the three-month period, up 21% compared to the same period last year. Total revenues climbed 22% to $42.2 billion.
The company also announced plans to repurchase $3 billion of its shares every year
Worldwide net oil-equivalent production was 2.83 million barrels per day during the quarter, a 1.8% increase from the same period last year helped by higher oil realizations. Output in the US advanced 5.4% year-over-year, while overseas production remained broadly flat. Benefitting from the production growth and high oil prices, profit of the upstream segment increased sharply, while the downstream segment witnessed a 30% fall.
“Our cash flow continues to improve with higher upstream margins and volumes, combined with disciplined spending. This enables us to initiate share repurchases, which are expected to be $3 billion per year based on our current outlook,” said Chevron CEO Michael Wirth.
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Earlier today, Exxon Mobil (XOM), the market leader in oilfield technology, reported below-consensus results for the second quarter, triggering a stock sell-off. Both Exxon and Chevron have been underperforming for quite some time despite the oil boom and the favorable prices.
Chevron’s shares increased about 15% in the past 12 months. The stock gained 1% in the pre-market trading Friday but dropped sharply after the earnings announcement.
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