Chevron (NYSE: CVX) reported on Friday lower earnings for the second quarter of 2023 compared to the same period of 2022, joining the other international supermajors in booking reduced profits on the back of much lower oil and natural gas prices this year.
As previewed in profit highlights a few days ago, Chevron said on Friday that its adjusted earnings were $5.8 billion, or $3.08 per share, for the second quarter of 2023. This was more than halved compared to the adjusted earnings of $11.4 billion, or $5.82 per diluted share, for the second quarter of 2022.
Earnings and revenues dropped compared to last year due to lower upstream realizations and lower margins on refined product sales, the company said today.
Sales and other operating revenues in the second quarter of 2023 fell to $47.2 billion, down from $65.4 billion in the year-ago period, primarily due to lower commodity prices.
Chevron's worldwide net oil-equivalent production rose by 2% year-on-year, mostly due to record Permian Basin production of 772,000 barrels of oil equivalent per day (boepd). U.S. net oil-equivalent production increased and set a new quarterly record primarily due to the growth in the Permian.
"Our quarterly financial results remain strong, and we returned record cash to shareholders," Mike Wirth, Chevron's chairman and chief executive officer, said in a statement.
The supermajor, whose capex in the second quarter rose by 18% mostly thanks to higher investment in the U.S., plans to further boost its investments in the United States with the announced agreement to buy PDC Energy.
Chevron joins Shell, TotalEnergies, and Equinor in reporting reduced profits for the second quarter, on the back of lower energy commodity prices. The drop in profits at Big Oil in the latest quarter wasn't unexpected, considering that oil prices averaged $75 per barrel in Q2 2023, compared to $113 a barrel in the same quarter last year, and natural gas prices were a fraction of the records seen in the summer of 2022.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
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