EnergyWatch

Chevron to buy its own shares for USD 25 billion

The US oil company has exceeded analyst projections for the fourth quarter due to increased US production.

US oil company Chevron announced an equity buy-back plan for USD 25 billion. The announcement follows a report for the fourth quarter, which exceeded expectations.

A buyback plan corresponds to close to 10 percent of Chevron's total market value, which after a 3.9 percent accounting fee tallied up to USD 227 billion.

"This should send a strong message to our investors about our willingness and ability to increase distribution to shareholders," said Chevron CFO Pat Yarrington at a Bloomberg News´.

Chevron still arrived at its fourth quarter with an adjusted profit per share of USD 2.10, while revenue landed at USD 42.35 billion. Bloomberg News reports that analysts had forecast earnings of USD 1.87 per share and revenue of USD 42.44 billion.

The adjusted net result landed at USD 4 billion against an anticipated USD 3.8 billion during the period.

Chevron also surprised with larger production than expected. In the last three months of 2018, the company pumped 3.08 million barrels of oil equivalents daily against an expected 3.03 million barrels.

"The financial and operational results were very strong in 2018. Earnings and cash flow continued to grow, and we delivered on all our financial priorities," says Michael K. Wirth, CEO of Chevron, in the report.

With the better than expected fourth quarterly report, Chevron joins the group of US oil companies publishing surprisingly positive reports – with Exxon Mobil and ConocoPhillips in the lead.

English Edit: Lena Rutkowski

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