Chevron Corp. on Friday posted a net income of $6.11 billion for the third quarter of 2021, swinging from a loss of $207 million a year earlier. That marked the company’s highest quarterly profit in eight years. The company registered adjusted earnings of $2.96 per share for the quarter, beating analysts’ median estimate of $2.21. Chevron’s shares were up 1.2% to $114.49 after it disclosed its quarterly results. They have gained more than a third since the start of the year.
Chevron’s earnings growth this quarter partially reflects surging oil and gas prices, higher upstream production and improved refining margins amid a recovery in fuel demand. America’s second-largest oil company generated a free cash flow of $8.5 billion in the quarter, higher than in 2008 and 2011 when oil prices exceeded $100 per barrel.
Chevron’s operating profit from oil and gas production surged to $5.1 billion, from $235 million a year earlier, thanks to strong international results. Profits in US refining and chemical businesses jumped more than six times year-on-year on rising demand. Chevron’s total production increased on its takeover of Noble Energy and more barrels from its operations in OPEC countries. The company plans to add two drilling rigs in the Permian Basin and increase oil and gas production by up to 3% annually through 2025.
