Categories AlphaGraphs, Earnings, LATEST, Other Industries

Chevron earnings rise on production spike, but miss street view

Strong production growth and the oil price boom lifted Chevron’s (CVX) profit in the second quarter. Earnings, however, missed analysts’ forecast and the stock fell sharply after the announcement. The company also announced plans to repurchase $3 billion of its shares every year.

Second-quarter earnings surged to $3.4 billion or $1.78 per share from $1.5 billion or $0.77 per share in the year-ago quarter. The results missed the estimates of Wall Street analysts, who have been particularly upbeat about the company’s increasing presence in shale fields like the Permian Basin.

Chevron Corporation second quarter 2018 earnings
Chevron Corp. Q2 2018 Earnings Infographic

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.

RELATED: Chevron Q2 2018 earnings call transcript

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.

RELATED: Chevron’s Q1 earnings beat estimates

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Tags

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