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Chevron: Q3 profit beat, buybacks continue

Chevron’s Q3 profits landed ahead of market expectations, despite falling at double-digit rates.
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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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Written by
Aarin Chiekrie
Aarin Chiekrie
Equity Analyst

Aarin is a member of the Equity Research team. Alongside our other analysts, he provides regular research and analysis on individual companies and wider sectors. Having a keen interest in global economics, he knows how macro-events can impact individual companies.

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Article history
Published: 1st November 2024