SAN RAMON (dpa-AFX) - Chevron (CVX) said the company is taking steps to optimize portfolio and reduce operating costs. The company expects to close asset sales in Canada, Congo and Alaska in fourth quarter 2024, as part of its plan to divest $10-15 billion of assets by 2028. Also, cost reduction efforts are underway, and the company is targeting $2-3 billion of structural cost reductions from 2024 by the end of 2026.
The company said its third quarter earnings decreased compared to last year primarily due to lower margins on refined product sales, lower realizations and the absence of prior year favorable tax items. The company's earnings totaled $4.49 billion, or $2.48 per share. This compares with $6.53 billion, or $3.48 per share, in last year's third quarter. Excluding items, adjusted earnings was $2.51 per share compared to $3.05. Analysts on average had expected the company to earn $2.43 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
Third quarter revenue was $50.67 billion compared to $54.08 billion, last year. Analysts on average had estimated $48.99 billion in revenue. Worldwide net oil-equivalent production was up 7 percent from a year ago primarily due to record production in the Permian Basin and the acquisition of PDC Energy.
'Chevron started up key projects in Anchor, Jack/St. Malo and Tahiti fields this quarter. These projects, combined with additional project start-ups through 2025, are expected to grow U.S. Gulf of Mexico production to 300,000 barrels of net oil-equivalent per day by 2026,' said Mike Wirth, CEO.
The company's Board of Directors declared a quarterly dividend of $1.63 per share, payable December 10, 2024, to all holders of common stock as on the transfer records of the corporation at the close of business on November 18, 2024.
Shares of Chevron are up 2% in pre-market trade on Friday.
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