Chevron’s third-quarter revenue fell 6.3%, largely due to lower prices which more than offset a 6.9% increase in production.
Underlying net profit fell at a much faster rate of 20.8% to $4.5bn. This was driven by the lower sale prices, weaker refining margins and the absence of favourable tax items which helped the prior year’s numbers. Despite the double-digit decline, profits were still better than markets expected.
Free cash flow improved from $5.0bn to $5.6bn due to lower levels of capital expenditure. Net debt was $21.1bn, up from $12.6bn at the start of the year.
Full-year production growth is now expected to land at the top end of its 4-7% guidance range. Pending regulatory approval, asset sales in the fourth quarter should generate proceeds of around $8bn before tax.
A fourth-quarter dividend of $1.63 was announced, up 7.9%. The group plans to complete between $4-4.75bn of share repurchases in the period.
The shares rose 2.1% in pre-market trading.
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