Chevron posts highest profit in eight years on surging oil, gas prices

HOUSTON (Reuters) – Chevron Corp posted on Friday its highest quarterly profit in eight years, thanks to surging oil and gas prices and a recovery in motor fuel demand that boosted refining margins.

The strong results came a day after U.s. lawmakers grilled top executives of major oil firms over the industry’s past dismissals of climate warming.

Chevron’s earnings reflect, in part, gains from higher demand after the industry’s deep production cuts last year during the pandemic.

The company posted net income of $6.11 billion, compared with a loss of $207 million a year ago on sales of oil that fetched nearly twice as much as a year ago and U.S. produced gas that sold for three times as much.

Shares were up 2% at $115.63 in pre-market trading and have gained more than a third this year. Adjusted earnings per share of $2.96 handily exceeded Wall Street’s profit estimate of $2.21 per share, according to Refinitiv IBES data.

Cash flow from operations, a closely watched measure, was $8.5 billion in the quarter, “the best ever reported by the company,” Chief Executive Michael Wirth said in a statement.

Overall production inched higher on the firm’s acquisition of Noble Energy and more production from OPEC partners, Wirth said. It would have been stronger if not for maintenance shut-ins at Kazakhstan’s giant Tengiz field.

The company plans an increase of up to 3% in oil and gas output through 2025.

Chevron and U.S. rival Exxon Mobil Corp. have doubled down on oil production and shunned a shift into solar and wind made by European oil firms. Exxon is expected to report strong quarterly results later on Friday.

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