(Boursier.com) — Chevron declines pre-market on Wall Street despite the surge in profits in the first quarter. The second-largest U.S. oil producer posted adjusted net profit of $6.5 billion for the period, the highest since the second quarter of 2012, but its adjusted earnings per share came in below analysts’ expectations of 3 $.36 vs. $3.44 expected, due to weaker than expected refining results. Cash flow from operations soared 93% to $8.1 billion and revenues soared 70% to $54.4 billion ($48 billion consensus).
Chevron has little exposure to Russia, unlike rivals facing large asset write-downs. The group has also raised its production target in North America’s largest oilfield, a sign that US shale oil still has a bright future ahead of it despite rising cost pressures and a lack of equipment. . Chevron will produce the equivalent of about 725,000 barrels of oil per day in the Permian Basin this year, a 15% increase from 2021.
The group is using its massive profits to increase investment in generation and renewable fuels, return cash to shareholders and pay down debt. Chevron earlier this year raised its dividend by 6% to $1.42 per share and increased its buyback program to $10 billion a year.
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