Chevron, the US company, posted its highest quarterly profit in 8 years, thanks to higher oil and gas prices and a pickup in auto fuel demand that boosted refining margins.
The strong results came a day after US lawmakers questioned top executives of major oil companies about accusations of greenwashing and misleading consumers about climate change measures.
Chevron’s earnings reflect gains from higher demand after deep cuts in oil and gas production last year during the pandemic, which cast a shadow over oil companies, and global demand for crude due to the lockdowns imposed by countries around the world to respond to the COVID-19 outbreak.
The company reported net income of $6.11 billion, compared to a loss of $207 million a year ago from oil sales that were nearly double what they were a year earlier.
Shares are up 2%, to $115.63 in pre-market trading, and have gained more than a third this year.
Adjusted earnings per share of $2.96 easily beat Wall Street earnings estimates of $2.21 per share, Reuters reported.
In a statement, CEO Michael Wirth said cash flow was $8.5 billion, the best the company has ever reported.
Wirth added that total production rose slightly after the company’s acquisition of Noble Energy and increased production from OPEC partners.
He pointed out that production could have been greater than what was achieved had it not been for the maintenance stop in the giant Tengiz field in Kazakhstan.
The company plans to increase up to 3% in oil and gas production through 2025.
Chevron and its US rival ExxonMobil have doubled oil production and avoided switching to solar and wind energy as European oil companies have done.
Exxon is expected to report strong quarterly results later Friday.
Source : Reuters