by Sabrina Valle
HOUSTON (Reuters) – Chevron nearly quadrupled its first-quarter profit, the oil giant said on Friday, as soaring oil and gas prices after Russia’s invasion of Ukraine allowed it to easily beat Wall Street forecasts. .
The second-largest US oil producer on Friday posted adjusted earnings of $6.5 billion (6.15 billion euros), or $3.36 a share, and 8 cents above Wall’s average estimate. Street which was banking on $3.28, according to Refinitiv.
In the same quarter last year, Chevron posted a profit of $1.7 billion, or 90 cents per share.
The world’s biggest energy groups have benefited greatly from rising oil and gas prices, which soared in February as Moscow prepared its offensive in Ukraine.
The barrel of Brent, the world market reference, reached an average of 114 dollars in the first quarter. Energy supply has tightened around the world as demand has returned to near pre-pandemic levels.
Chevron’s revenue rose 70% to $54.4 billion in the first quarter, beating Refinitiv’s consensus of $47.9 billion.
The group will take advantage of these gains to increase its investments in production and renewable fuels, repay its shareholders and its debts.
“The first is the dividend. The second is investing in the business. The third is maintaining a balanced and strong balance sheet. And finally, the fourth is returning excess cash to shareholders,” the director told Reuters. financier Pierre Breber.
At the start of the year, Chevron increased its dividend by 6%, to $1.42 per share, and increased its share buyback program to $10 billion a year.
Chevron’s oil and gas production in the United States increased by 10% in one year. Production in Russia, on the other hand, plunged after the United States and its allies imposed heavy sanctions on Moscow. The United States, the world’s largest crude oil producer, however, saw production grow slowly in 2022, despite rising prices.
The group also plans to increase its investments and acquisitions by more than 50% this year compared to 2021, which could include operations in low-carbon sectors such as natural gas and renewable energy.
“Chevron is doing its part to increase domestic supply,” Chevron general manager Mike Wirth said in a statement.
(Reporting Sabrina Valle; French version Dagmarah Mackos; editing by Kate Entringer)
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