Chevron Posts Best Quarter Since 2014, as Oil Industry Rebounds

For all of 2021, Chevron earned $15.6 billion compared with a loss of $5.5 billion in 2020, one of the most trying years for the industry in modern history as businesses and cities locked down and consumers stayed home.

Chevron executives say the slump, and the necessity for the company to cut expenses, ultimately made for a stronger business. The company was able to raise its dividend in 2021, and again this week.

“We’re an even better company than we were just a few years ago,” said Mike Wirth, Chevron’s chief executive. “We’re more capital and cost efficient, enabling us to return more cash to shareholders.”

Chevron reported higher sales volumes and lower expenses in its exploration and production operations. Most important, its average sale price for a barrel of oil in the fourth quarter was $63 compared with $33 the year before. The price of the natural gas it sold was more than three times as high as the year before, mainly because of weather factors.

Chevron’s refinery profits also improved. Its quarterly profit on refining in the United States reached $660 million in the quarter compared with a loss of $174 million a year earlier. As the global economy recovered, Chevron’s U.S. refinery output increased by 9 percent in the quarter from the year before.

Article source: https://www.nytimes.com/2022/01/28/business/energy-environment/chevron-earnings-4q-2021.html