Energy
Friday, February 2nd, 2024 6:49 pm EDT
Key Points
- Chevron, the second-largest U.S. oil company, reported a sharp decline in fourth-quarter profit due to impairment charges. However, despite a 40% drop in profit from $35.5 billion in 2022 to $21.4 billion in 2023, the company returned a record $26.3 billion to shareholders through dividends and share buybacks.
- Chevron’s return to shareholders accounted for almost 10% of its market capitalization in 2023, as it paid out $11.3 billion in dividends and bought back $14.9 billion in shares. The company’s board approved an 8% increase in the quarterly dividend to $1.63 starting in March.
- In the fourth quarter, Chevron’s net income fell 65% to $2.3 billion, or $1.22 per share, with U.S. oil and gas assets recording a loss of $1.35 billion due to impairment charges and decommissioning obligations. Excluding impairment charges, Chevron reported an adjusted profit of $3.45 per share, beating Wall Street’s estimate of $3.21 per share for the quarter.
Chevron reported a significant decline in its fourth-quarter profit compared to the previous year, primarily due to various impairment charges. Despite a roughly 40% drop in profit from $35.5 billion in 2022 to $21.4 billion in 2023, Chevron managed to return a record $26.3 billion to its shareholders by paying out $11.3 billion in dividends and buying back $14.9 billion in shares. CEO Michael Wirth highlighted that almost 10% of the company’s market capitalization was returned to shareholders in the past year. Chevron’s net income for the fourth quarter fell by 65% to $2.3 billion, or $1.22 per share, with U.S. oil and gas assets recording a loss of $1.35 billion due to $1.8 billion in impairment charges and a $1.9 billion hit associated with decommissioning obligations for previously sold assets in the Gulf of Mexico. Excluding impairment charges, Chevron reported an adjusted profit of $3.45 per share, surpassing Wall Street’s estimate of $3.21 per share for the quarter. The company’s refining profit dropped to $1.15 billion, a 35% decline from the same period the previous year. Despite volatile crude oil prices in 2023, Chevron produced a record 3.1 million oil-equivalent barrels per day, expecting a 4% to 7% production increase in 2024. Chevron’s capital expenditures for the quarter rose nearly 16% to $4.4 billion, reflecting investments in acquired assets and a majority stake in hydrogen fuel project developer ACES Delta. Chevron’s board also approved an 8% increase in the quarterly dividend to $1.63 starting March.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/02/chevron-cvx-q4-earnings-report-2023.html
