Chevron Records Annual Profit of $35.5B
On Friday, Chevron Corp. revealed that it pocketed its highest-ever annual profit in 2022, with its quarterly earnings report detailing profits of $35.5B. The company's shares rose 53% while other sectors fell.
Facts
- On Friday, Chevron Corp. revealed that it pocketed its highest-ever annual profit in 2022, with its quarterly earnings report detailing profits of $35.5B. The company's shares rose 53% while other sectors fell.
- News that Chevron has exceeded its previous record net profit, set in 2011, by around $10B kicked off the publication of global earnings across the energy sector. According to analysts, the spike in fuel prices over the past twelve months — prompted by the rising demand for energy amid Russia's invasion of Ukraine — has primed Western energy companies to a combined profit of $200B last year.
- Amid news of record profits, Chevron is expected to face controversy over a new $75B share-repurchase plan that is to take place over the coming years. The White House expressed opposition to the program.
- Chevron — the second largest oil producer in the US — recorded profits of $7.9B for its fourth quarter, which was 61% higher than the previous year but fell short of the $11.4B collected in its second quarter.
- According to Chevron's finance chief Pierre Breber, following provisions for shareholder dividends, the company will prioritize funding production and debt repayment.
Sources: Wall Street Journal, Reuters, and CNN.
Narratives
- Establishment-critical narrative, as provided by CNN. Chevron has published record profits, yet is continuing to exacerbate the cost of living struggles for US consumers to reward shareholders. The company is swimming in cash and has a responsibility to its customers to make petroleum consumption — a basic necessity in the US — more affordable.
- Pro-establishment narrative, as provided by Financial Times. The investment Chevron executives are making in the company is not just about lining their own pockets — it's about future-proofing. Chevron's capital spending is still well below pre-COVID levels and, although oil prices have fallen from the highs of last summer, the reopening of China's economy will keep demand for crude oil high and maintain the pressure of global supplies.
