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The
oil major posted second-quarter net profit of $11.6 billion, or
$5.95 per diluted share, more than triple the $3.1 billion, or
$1.60 per share, in the same period last year.
Chevron's ramped-up share buyback plan follows those of other
oil majors, including European giants TotalEnergies and Shell,
which this week increased buybacks to satisfy investors looking
for bigger returns.
Energy demand rebounded sharply in the last 12 months, but high
prices for both fuel and natural gas are hitting consumers
worldwide. Global economic figures show several economies are
starting to slow, with potential for demand destruction.
Chevron's average U.S. sales price for a barrel of crude oil and
natural gas liquids was $89 in the quarter, up from $54 a year
earlier.
The international sales price for crude was $102 per barrel, up
from $62 a year earlier.
The results from Chevron and U.S. rivals are likely to draw fire
from the White House and other politicians who say oil companies
are gouging consumers with high fuel prices as they rake in
record profits.
Fuel prices have risen sharply due to a combination of pandemic
closures, sanctions on Russia and export quotas in China that
have reduced refining capacity.
Chevron increased the top end of its annual share repurchase
guidance range to $15 billion from $10 billion. Analysts from
large financial firms were not expecting an expansion of the
buyback program this soon after it raised its guidance in May to
the top end of its $5 billion-$10 billion range.
The company has also been using its earnings to cut its debt
ratio, which currently stands under 15%, below the company's
guidance. Shares rose 3.7% in premarket trading to $155.90.
Chevron has been increasing investments and expanding production
in the United States, while its global output falls following
expiration of concessions in Thailand and in Indonesia.
"We more than doubled investment compared to last year to grow
both traditional and new energy business lines," Chief Executive
Michael Wirth said in a statement.
GRAPHIC: Energy prices push Chevron's earnings up (https://fingfx.thomsonreuters.com/
gfx/ce/mypmnlzbbvr/Pasted%20image%201659090469153.png)
(Reporting by Sabrina Valle; editing by Muralikumar Anantharaman
and Jason Neely)
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