The shares of Chevron are up by more than 1% during Friday’s pre-market trading session after the company reported profits for the second consecutive quarter.
Chevron Posts Profit Again
Oil giant Chevron reported its second quarter of the year earnings earlier today, beating analysts’ estimations and recording profits yet again. The rising demand for petroleum products and an increase in oil prices in recent months contributed massively to Chevron’s success in the last quarter.
Chevron reported earnings of $1.71 per share during the second quarter of 2021 on an adjusted basis. Meanwhile, the revenue generated during that period stands at $37.6 billion. The figures were better than expected, with analysts estimating earnings per share of $1.59 and revenue of $35.94.
The performance in this quarter far outweighs the company’s output in the same period last year. Due to the Coronavirus pandemic, Chevron lost 1.59 per share on an adjusted basis and revenue of $13.49 billion.
The results of the second quarter are also better than the first, with demand for products increasing as more countries reopen their economies. In Q1 2021, Chevron earned 90 cents per share on an adjusted basis and reported a revenue of $32.03 billion.
Chevron To Resume Share Repurchases
After recording profits for the second consecutive quarter, Chevron said it would resume repurchasing shares again in the third quarter. Mike Wirth, Chevron’s chairman and CEO, said, “Our free cash flow was the highest in two years due to solid operational and financial performance and lower capital spending. We will resume share repurchases in the third quarter at an expected rate of $2-3 billion per year.”
The oil giant said it would continue to exercise discipline regarding its capital spending. The company cut down capital spending by 32% over the past year. The shares of Chevron rose by over 1.3% at Friday’s pre-market trading session, thanks to the news of the company’s positive quarter.
Year-to-date, CVX is up by over 20%, with investors appreciating the company’s performance in the first two quarters of 2020.