Chevron has reported a decrease in earnings for the third quarter of 2024 (Q3 2024), citing lower margins on refined product sales, lower realisations and the absence of prior year favourable tax items as primary reasons.

The oil giant's earnings stood at $4.5bn, a drop from $6.5bn in the same period last year.

Despite the earnings decrease, the company's cash flow from operations remained consistent with the previous year, supported by higher dividends from equity affiliates and favourable working capital effects.

This balance was achieved even after accounting for lower earnings and a one-time payment for ceased operations.

Worldwide net oil-equivalent production saw a 7% increase from last year, with US and Permian Basin production reaching new quarterly records.

Concurrently, Chevron is embarking on a cost reduction initiative, targeting $2bn–3bn in structural cost savings by the end of 2026.

Chevron chairman and CEO Mike Wirth said: “We delivered strong financial and operational results, started up key projects in the US Gulf of Mexico and returned record cash to shareholders this quarter.

“We are also taking steps to optimise our portfolio and reduce operating costs to deliver superior long-term value to shareholders.”

Chevron has also initiated key projects in the Anchor, Jack/St. Malo and Tahiti fields this quarter. These developments, along with other project start-ups planned through 2025, aim to boost US Gulf of Mexico production to 300,000 barrels of net oil equivalent per day by 2026.

In line with its asset divestment strategy, Chevron expects to conclude sales in Canada, Congo and Alaska in Q4 2024.

These sales are part of a broader plan to divest $10bn–15bn in assets by 2028.

Amidst these strategic shifts, Chevron has continued to prioritise shareholder returns, disbursing a record $7.7bn in cash during the quarter, including $4.7bn in share repurchases and $2.9bn in dividends.

Furthermore, the company's Board of Directors has declared a quarterly dividend of $1.63 per share, payable on 10 December 2024, to shareholders.

"Chevron reports decline in earnings and outlines plan for significant cost cuts" was originally created and published by Offshore Technology, a GlobalData owned brand.

 

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