Chevron Corporation (NYSE:CVX) has delivered first-quarter results that beat Wall Street forecasts despite oil prices retreating from their 2022 highs.
The oil major reported a 6.7% dip in sales and other operating revenues to $48.8 billion for the three months to March 31, 2023, due to lower commodity prices.
It also reported a 3% fall in worldwide net oil-equivalent production primarily on lower international production due to the end of its Erawan concession in Thailand.
Total earnings rose 5% to $6.57 billion as higher margins on sales of refined products led to a big recovery in downstream earnings, more than compensating for a 5.9% decline in earnings from its upstream businesses. Adjusted earnings per share, which exclude a $130 million tax charge related to changes in the energy profits levy in the UK, rose 5.6% to $3.55, beating Wall Street forecasts for $3.36 per share.
The company declared a quarterly dividend of $1.51 per share, noting that total shareholder distributions were $6.6 billion during the quarter, including dividends of $2.9 billion and share repurchases of $3.75 billion. It said it expects to repurchase $4.375 billion in shares in 2Q 2023.
“We’re delivering strong financial results and increasing cash returned to shareholders,” chairman and CEO Mike Wirth said in an earnings statement.
“The company’s return on capital employed has been greater than 12% for seven consecutive quarters, and the company returned $6.6 billion to shareholders in the first quarter, an increase of 65% from last year. At the same time, we’re investing more to help grow future energy supplies,” Wirth added.
Contact the author at stephen.gunnion@proactiveinvestors.com