Chevron beats expectations in third quarter despite year-over-year decline

The American oil and gas group Chevron saw its results again affected by a drop in refining margins in the third quarter, but they exceeded market expectations. The turnover reached 50.67 billion dollars (-6.30% over one year) and the net profit 4.49 billion (-31%), when the consensus of FactSet analysts had anticipated respectively 48.86 billion and 4.31 billion. Net earnings per share excluding exceptional items, data favored by the markets, came to $2.51. The consensus was expecting $2.43.

The group explains in a press release on Friday that its results fell due to lower refining margins compared to the previous year, lower proceeds from sales and the absence of tax advantages integrated into the third quarter of 2023. It specifies that it has returned to its shareholders a record $7.7 billion between July and September, including $4.7 billion in share buybacks and $2.9 billion in dividends. “We have taken actions to optimize our portfolio and reduce our operational costs to produce superior long-term value for shareholders”commented Mike Wirth, boss of Chevron, quoted in the press release.

Third Bridge analyst Peter McNally called the results “better than expected overall”noting «bons» operational results. “The biggest positive surprise came from Chevron’s international activities, both in exploration-production and refining”he continued, emphasizing the 2.6% increase in produced volumes. But, according to him, “Investors await clarity around Hess acquisition project”. An arbitration decision in the dispute notably involving ExxonMobil and Chevron concerning this $53 billion operation is expected in May 2025, the group indicated in August, specifying that the final decision would be expected within the following three months.

Chevron highlighted on Friday the recent green light from the American competition authority (FTC), a “crucial condition for the operation”. The company plans to finalize the sale of operations in Canada, Congo and Alaska in the fourth quarter, as part of its plan to generate $10 billion to $15 billion in asset sales by 2028. It has announced on October 7 the sale for $6.5 billion of several assets in eastern Canada, including its interests in tar sands fields as well as shale gas and oil, to the company Canadian Natural Resources. In addition, Chevron is working to reduce its structural costs by $2 to $3 billion by the end of 2026, compared to 2024. In electronic trading before the opening of the New York Stock Exchange, the stock Chevron rose 2.05%.