It was a nickel below the average calculation of analysts after the fourth quarter earnings which were $2.06 a share, was adjusted. A Bloomberg survey said.
This happened a day after competitor Shell PLC, also revealed discouraging end of year returns.
Despite the disappointing results, CEO Mike Wirth is counting on the launch of the massive Tengiz project in Kazakhstan and renewed capital-spending discipline to strengthen finances amid global market uncertainty.
There are indications that Wirth’s strategy is paying off. Chevron’s stock has risen nearly 8% this year, far outpacing Exxon’s 1.9% gain. Production at the Tengiz project—operated and 50% owned by Chevron—is set to increase to 1 million barrels per day later this year.
Brent crude averaged around $74 per barrel in the fourth quarter, an 11% decline from the previous year, straining the industry’s ability to sustain large shareholder payouts without taking on debt. Refining margins also tightened.
Chevron’s stock struggled last year after its $53 billion acquisition of Hess Corp. hit a roadblock due to an arbitration case filed by Exxon. Exxon asserts a right-of-first-refusal over Hess’s 30% stake in Guyana’s Stabroek Block. The case is scheduled for a hearing in May, with a ruling expected by September.
