Chevron on Friday 29th October 2021 declared its highest quarterly profit in the past 8 years. The energy giants have been able to capitalize on growing oil price associated with the firm’s higher supply to meet existing fuel demand.
Chevron posted its quarterly results after top executives of the largest oil companies in the world were scrutinized by lawmakers in the United States of America, This event arose due to most firms in the oil industry financing groups that resists a demand shift to fossil fuels and dismissing climate warming.
The financial earnings of chevron, Is a typical reflection of the high demand in the oil market after production cuts arose during the COVID-19 pandemic. The company posted a net income of $6.11 billion, compared with a loss of $207 million a year ago, on sales of oil that fetched nearly twice as much as a year ago and U.S.-produced gas that sold for three times as much.
Shares climbed by 2% at $115.37 in pre-market trading and have gained more than a third this year. Adjusted earnings per share also exceeded expectation of $2.96 according to Refinitiv IBES data.
Chief Executive Officer Michael Wirth stated that “Cash flow from operations, a closely watched measure, was $8.5 billion in the quarter, the best ever reported by the company,”
Strong international results pushed Chevron’s operating profit from oil and gas production to $5.1 billion, from just $235 million a year ago. Profits in U.S. refining and chemicals jumped more than six times from a year-ago on higher demand for chemicals and motor fuels.
Chevron and U.S. rival ExxonMobil Corp have increased oil production, shunning European competitors’ shift into solar and wind. Exxon also is expected to report strong quarterly results on Friday.