Chevron Shares Dip On Lukewarm Q4 Results

Chevron Shares Dip On Lukewarm Q4 Results
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Shares of Chevron Corporation (NYSE:CVX) dropped on Friday after the company disclosed its earnings report for the fourth quarter. Chevron beat revenue expectations but fell short on profit, despite the increasing costs of energy.

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Q4 2021 hedge fund letters, conferences and more

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When Baupost, the $30 billion Boston-based hedge fund now managed by Seth Klarman, was founded in 1982, it was launched with a core set of aims. Q4 2021 hedge fund letters, conferences and more Established by Harvard professor William Poorvu and a group of four other founding families, including Klarman, the group aimed to compound Read More

A Mixed Q4

As reported by CNBC, analysts had expected Chevron to earn $3.12 per share in the fourth quarter last year but pulled off $2.56. Still, the firm was expected to hit a revenue of $45.69 billion and managed to accrue a stellar $48.13 billion.

On Friday, Chevron shares dropped by over 4% after soaring to a record on Thursday.

“For the full year, Chevron said it saw record free cash flow of $21.1 billion while reducing debt by $12.9 billion. The oil giant earned $15.6 billion for the year, compared to a loss of $5.5 billion in 2020,” CNBC informs.

Amid the mixed results, Chevron said in a statement that it has increased its shareholders’ payout for the 35th year in a row. The firm added dividends for the quarter by eight cents to $1.42 per share, which accounts for 6%.

Moreover, the company more than doubled its operational cash flow between 2020 and 2021, as it came up to $29.2 billion from $10.6 billion.

Results

CNBC reports that “Chevron’s fourth-quarter results compare to a loss of one cent per share on an adjusted basis during the same quarter one year ago, and $25.25 billion in revenue. During the third quarter of 2021 the company earned $2.96 per share on an adjusted basis, with revenue coming in at $44.71 billion.”

It was in the same period that, according to Chevron, net oil-equivalent production around the globe dropped by 5% year-on-year to 3.12 million daily barrels. The average price of each of the company’s crude oil and gas liquids barrels in the U.S. nearly doubled YoY.

It rose from $33 in the fourth quarter of 2020 to $63 in the same period last year.

Oil is recovering fast after suffering a big pandemic blow, as for the first time in almost eight years, Brent crude reached $90 per barrel. Following a similar trend, West Texas Intermediate crude futures —the U.S. oil benchmark— have recovered to a 7-year record of $88.

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