Chevron has reported a quarterly profit of $11.2 billion, its second-highest ever and beating analyst estimates by a significant margin.
The increase comes as oil corporations report growing profits with prices close to record highs, supplies limited due to output reductions caused by Covid-19, and market disruption due to the conflict in Ukraine.
Chevron’s reported third-quarter net profit equates to $5.78 per share. This was significantly higher than Wall Street’s projection of $4.86 and nearly double the profit for the same period last year.
Chief Financial Officer Pierre Breber said the results will support increased project spending next year. As a result of contract expirations in Asia, production was essentially flat last quarter.
Due to the spike in oil and natural gas prices following Russia’s invasion of Ukraine in late February, which resulted in rising energy costs for consumers and businesses, oil firms have recently generated record profits.
Global economies have been forced to search elsewhere for their energy as a result of Western sanctions against Moscow. US exports of gas and oil to Europe have increased as a resut, laying the stage for record-breaking profits for the oil industry.
French oil company TotalEnergies announced third-quarter profits of about $10 billion on Thursday. This is nearly twice as much as the same period one year previously.
Chevron has promised to use its profits to reduce debt, increase shareholder dividends, and fund fossil fuel and alternative energy projects.
“Our fourth priority, after we have met the first three, is to do share buybacks,” Breber said, proposing a rate of $15 billion annually.