Chevron Corporation posted Friday its financial results for the third quarter of the year. The company reached the highest cash flow values in its history at $8,5 billion in the quarter. In the statement, Chevron’s CEO, Michael Wirth, said that it was indeed the highest cash flow ever reported.
Firstly, the report highlights that the company also reached its highest quarterly profit in eight years. Mostly due to the surging oil and gas prices; higher output, and a recovery in motor fuel demand, which boosted refining margins.
Moreover, according to Reuters, the company’s strong financial performance also comes as Chevron, along with ExxonMobil, as the US oil majors, keep their strategy on boosting investment and production in the oil and gas business. Unlike their rivals in Europe, which are investing heavily in renewables, US oil majors are doubling down drilling and oil output.
On the other hand, Chevron’s strong earnings also reflect gains after the company’s deep cuts in production last year, during the pandemic. Now, with production increased and demand at pre-pandemic levels, the company posted a net income of $6,11 billion, compared to a loss of $207 million a year ago.
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Chevron increased oil output after acquisition; reached higher refining margins
Furthermore, the cash flow operations of the company reached $8,5 billion in the quarter, the company’s best ever, as outlined above. Upon breaking the news, shares of the company were up 2% at $115,37 in pre-market trading. As for this year, shares of the company have gained more than a third, according to Reuters.
On the other hand, CEO Wirth said that overall production rose after Chevron acquired Noble Energy; in addition to the increased output from OPEC. However, it would have been stronger if not for the shut-in of Kazakhstan’s giant Tengiz field.
The company also reported that “the net liquids component of oil-equivalent production decreased 6 percent to 915,000 barrels per day in third quarter 2021; while net natural gas production of 5.95 billion cubic feet per day increased 13 percent, compared to last year’s third quarter.”
Finally, profits in US refining and chemicals jumped more than six times from a year ago; on higher demand for chemicals and motor fuels. Particularly, this business segment reported earnings of $1.08 billion in third quarter of 2021; compared with $141 million a year earlier.
