Page 5 - NorthAmOil Week 05 2022
P. 5
NorthAmOil COMMENTARY NorthAmOil
No. 1 gain seats. Engine No. 1 believes that a fourth quarter it came in at $3.7bn.
more aggressive pursuit of the energy transition Chevron reported fourth-quarter production
will benefit the company’s profitability as well as of 3.1mn boepd, down 5% y/y. The decline was
its standing on environmental issues. attributed in part to the expiration of licences
Since the board shake-up, ExxonMobil has in Indonesia and Thailand. Output also totalled
adopted a long-term net-zero emissions tar- 3.1mn boepd over the whole of 2021, but this
get, among other measures. The super-ma- marked a slight increase on the previous year.
jor announced this week when it unveiled its The super-major’s US output rose, spurred
restructuring plan that it was on track to exceed by increases in the Permian Basin and a lack of
$6bn in structural cost savings in 2023 com- extreme weather impacts in the Gulf of Mexico.
pared with 2019. Like ExxonMobil, Chevron anticipates contin-
uing to grow its Permian production in 2022,
Chevron albeit by a more modest 10% y/y, according to
Chevron, for its part, reported earnings of Chevron’s chairman and CEO, Mike Wirth. Overall, though,
$5.1bn, or $2.63 per diluted share, in the fourth Overall, though, Chevron anticipates 2022
quarter of 2021, up from a loss of $665mn or production remaining flat or falling by 3%, Chevron
$0.33 per share in the same quarter of 2020. The which has also been attributed largely to anticipates
company’s adjusted earnings amounted to $2.56 the expiration of contracts in Indonesia and
per share, falling below analyst expectations of Thailand. 2022 production
$3.12 per share, as cited by Refinitiv. Jefferies analysts described the super-ma-
“The miss was driven by international jor’s results as a “weak performance across the remaining flat or
upstream primarily,” RBC Capital Markets’ board”, adding that the production outlook for
deputy head of European research, Biraj this year would disappoint investors. falling by 3%.
Borkhataria, was quoted by Reuters as saying. Wirth noted, though, that he expected 2022
“Downstream earnings also disappointed, with to be even better for returns to shareholders,
weakness across both refining and chemicals.” talking up the company’s efforts to become
However, Chevron’s revenue came in at more capital- and cost-efficient.
$48.1bn, exceeding analyst expectations of Chevron’s results illustrate that higher oil
$45.7bn. and gas prices alone will not be enough to guar-
Over the whole of 2021, Chevron reported antee a strong performance, despite improved
earnings of $15.6bn, up from a loss of $5.5bn earnings and other metrics. Like ExxonMobil,
in 2020 and marking its best annual earnings Chevron is expected to continue pursuing effi-
result since 2014. Its 2021 revenues amounted ciencies and acting with some caution, while
to $162.5bn, up from $94.7bn the previous year. also doing more on the energy transition than
Its capex for the year was $11.7bn – and for the it had been previously.
Week 05 03•February•2022 www. NEWSBASE .com P5
