Chevron, one of the largest oil companies in the world, surprised the market by presenting a financial report with unexpected results for the first quarter of 2023.
The company's net income rose 5% year-over-year to $6,57 billion, or $3,46 per share, beating market expectations by 4%. The survey was released by Refinitiv agency.
The highlight of this season was the business of Chevron refining, which generated revenue of US$ 1,8 billion, five times higher than the previous year, thanks to higher margins. On the other hand, the company's oil and gas production fell by 25%, an indirect result of the drop in prices compared to the same period in 2022.
According to analysts, the lack of production at its shale operations in the Permian basin in Texas was a contributing factor to the drop in profits from the company. Chevron. The company reported that its non-operated assets were responsible for these negative results in its operations.
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Chevron is optimistic about oil price changes
Despite the 16% drop in oil price Brent, which is the global benchmark for the commodity, traded at an average of $82 per barrel during the first quarter of 2023, the company declared average double-digit returns for every dollar invested.
Chevron is one of the main oil companies present in Brazil, and its financial results directly influence the country's economy, contributing to the industry growth. With the unexpected profits, the company is expected to continue expanding its business and boosting the national economy, which is facing turbulent times amid the pandemic.
Drop in oil and gas production
A largest oil company in the US recorded a 25% drop in oil and gas production compared to the same period the previous year. According to the company, one of the reasons was the lack of production at its shale operations in the Permian basin in Texas. Chevron reported that its non-operated assets were also responsible for these negative results.
The highlight of Chevron's financial results it was due to its refining business, which generated revenues of US$ 1,8 billion, five times greater than the previous year, thanks to higher margins.
Optimism for oil price changes
Even with the 16% drop in the price of Brent oil during the first quarter of 2023, Chevron remains optimistic about the oil price changes. The company declared average double-digit returns for every dollar invested. Still, analysts warn that market instability could affect Chevron's future projections.
Chevron influencing Brazil's economy
Chevron is one of the main oil companies present in Brazil, and its financial results exert great influence on the country's economy. With the surprising net profit disclosed, it is expected that the company will continue expanding its business in the country and contributing to the growth of the sector.