Chevron's Profit Recovers From Second Quarter, Slumps From Last Year

Chevron boosted revenue and profits in the third quarter from the previous three months as oil prices recovered. The results were well below those from a year earlier, when prices jumped in reaction to Russia's war in Ukraine.

Profit grew 8.6% from the second quarter to $6.53 billion, the company disclosed Friday. From a year earlier, there was a drop of 42%. Sales fell 19% year-over-year to $54.1 billion.

Adjusted earnings per share was $3.05. Analysts estimates $3.75 per share, CNBC said, citing LSEG data.

Chevron shares fell 5.3% to $146.54 in New York at 10:28 a.m.

The company attributed its drop in year-over-year earnings to "lower upstream realizations and lower margins on refined product sales," referring in part to delays in an expansion project in Kazakhstan's largest oil and gas field.

Chevron declared a fourth-quarter dividend of $1.51 per share, remaining unchanged from the previous quarter.

"Chevron is delivering strong financial results while also investing to profitably grow our traditional and new energy businesses," Chairman and Chief Executive Officer Mike Wirth said in the earnings statement. The report highlighted Chevron's September acquisition of ACES Delta, "the United States' largest green hydrogen production and storage hub."

On Monday, the company agreed to buy Hess Corporation for $53 billion, notably taking ownership of Hess' holdings in Guyana and North Dakota.

The move is expected to immediately boost Chevron's daily oil and gas output by 10%, leading analysts to question the credibility of the oil giant's net-zero pledges.