Chevron Unveils Weak Q4 Data, Announces $75B Stock Buyback

On Friday, Chevron reported weak fourth-quarter 2022 financial results and announced a $75.00 billion share buyback program. The energy giant’s stock price plummeted by 4.44% to $179.45 apiece on January 27. Yet, it is anticipated to increase slightly by 0.40% to $180.17 per share on Monday.

Chevron said its revenue came at $56.47 billion, higher than the market estimates of $53.83 billion but lower than the previous record of $66.64 billion. Meanwhile, its earnings per share plunged to $4.09, disappointing the analysts’ projections of $4.42 and missing the precursory reading of $5.66.

Besides, executives stated that the company’s profits slipped as fossil fuel costs retreated from all-time highs amid the Russia-Ukraine war.

On Wednesday, Chevron announced a $75.00 billion stock buyback program, its largest ever. It is equivalent to about a fifth of its current market value.

Also, the energy giant raised its quarterly dividend by 6.00% to $1.51 a share. Besides, it expects to repurchase roughly $15.00 billion in shares this year.

Analysts said this buyback program defied US President Joe Biden, who criticized the industry’s huge shareholder returns during a war. In addition, He argued companies should instead spend more to increase supply, bringing fuel prices down.

CEO said Chevron Raised Output in Venezuela

Chevron CEO Michael Wirth said the shift in US sanctions on Venezuela allowed its joint venture to raise short-term production. The increase would be 50,000 to 90,000 barrels per day.

The reopening of oil flows gave the firm more involvement in decision-making but the lack of limited infrastructure expansion. Wirth recognized this as a good short-term effect but couldn’t project that further production trends could be concluded. Regarding potential output buildup, he said they are working on expanding production, but it is too early to forecast anything.

During the fourth quarter earning results, Chevron has not registered a profit from Venezuela.