Chevron (CVX) – Get Free Report shares slipped lower Friday after the oil major posted softer-than-expected second quarter earnings and said near term output levels would decline amid planned improvements in upstream production.
Chevron said adjusted earnings for the three months ending in December came in at $5.8 billion, or $3.08 per share, down nearly than 50% from the same period last year but just inside the revised Street consensus forecast of $3.13 per share.
Group revenues, the company said, fell 29.2% from last year to $47.2 billion, just ahead of analysts’ estimates of a $46.9 billion tally.
Earlier this week, Chevron had warned investors that adjusted net income would fall to $5.8 billion, or $3.80 per share, as crude, which traded north of $100 per barrel for much of the quarter last year following Russia’s invasion of Ukraine, eased to the mid-$70 per barrel range over the three months ending in June.
Planned downtime and turnarounds, Chevron said, would likely reduce its third quarter output by around 110,00 barrels per day, adding that full-year production is trending at the lower end of its prior forecast.
“Our quarterly financial results remain strong, and we returned record cash to shareholders,” said CEO Mike Wirth. The company has delivered more than 12% ROCE for eight straight quarters and returned $7.2 billion to shareholders in the quarter, an increase of 37% from the year-ago period.
“Strong execution resulted in record Permian Basin production this quarter,” he added. “Our consistent performance and disciplined use of capital are driving superior value for our shareholders.”
Chevron shares were marked 0.32% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $159.15 each.