((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
*
7% increase in oil and gas volumes offsets falling prices
*
Up to $3 billion in cost reductions planned through 2026
*
Asset sales expected to generate $8 billion in revenue
(Added cost reduction, efficiency and new project start-up perspectives to paragraphs 8, 10, 13 and charts) by Mrinalika Roy and Gary McWilliams
Chevron Corp CVX.N beat Wall Street estimates for its third-quarter profit on Friday, helped by higher oil and gas production, but its profits fell from a year earlier.
The American company, including the Hess takeover project
HES.N for $53 billion delayed due to challenge from rivals Exxon Mobil XOM.N and CNOOC Ltd
600938.SS , reported adjusted profit of $4.53 billion, up from $5.72 billion a year ago.
Shares rose 2% before normal trading hours.
Oil industry profits have fallen this year due to lower crude prices and weaker growth in fuel demand. In the quarter ending September 30, oil futures prices averaged 17% lower than the previous quarter, and global fuel margins suffered from slowing demand growth and excess supply.
European oil majors BP BP.L and TotalEnergies TTEF.PA also posted weaker results this week due to sharp year-on-year declines in refining margins and lower oil prices. Exxon Mobil posted a higher-than-expected profit thanks to an increase in oil production, but profit fell 5% from a year earlier.
Chevron said it earned $2.51 per share for the quarter on an adjusted basis, compared with analysts' estimates of $2.42 according to LSEG data, helped by a 7% year-over-year increase. other oil and gas volumes and operating cost reductions. Adjusted earnings for the prior year were $3.05 per share.
“We are also taking steps to optimize our portfolio and reduce operating costs to deliver superior long-term shareholder value,” Chief Executive Michael Wirth said in a statement.
Up to $3 billion in savings are expected through 2026 through leveraging technology, selling assets and changing how and where work is done, the agency said. business.
Chevron said it would move its headquarters from California to Texas and open a new nearly $1 billion engineering center in India
Savings are necessary to increase returns. This year, share buybacks and dividends have outpaced profits. The $4.5 billion profit recorded in the third quarter was less than the $7.7 billion spent on shareholder compensation.
Ongoing sales of oil properties in Canada, Alaska and Congo will generate approximately $8 billion in pre-tax revenue. All three sales are expected to close during the quarter, the company said.
Operating profits declined from the previous year in both major units. Profits from pumping oil and gas fell 20% to $4.59 billion, while profits from refining oil into gasoline and diesel fell 65% to $595 million.
Well maintenance and asset sales will reduce fourth-quarter oil and gas production by about 90,000 barrels per day, but the company remains on track for an increase of about 7% from a year to year. A closely watched oil expansion project in Kazakhstan is on track for an initial start-up in the first quarter, the company said.
