(Chevron, 29.Apr.2022) — Chevron Corporation (NYSE: CVX) reported earnings of $6.3bn ($3.22 per share – diluted) for first quarter 2022, compared with $1.4bn ($0.72 per share – diluted) in first quarter 2021. Included in the current quarter were pension settlement costs of $66mn. Foreign currency effects decreased earnings by $218mn. Adjusted earnings of $6.5bn ($3.36 per share – diluted) in first quarter 2022 compares to adjusted earnings of $1.7bn ($0.90 per share – diluted) in first quarter 2021.
“First quarter financial performance saw return on capital employed increase to 14.7 percent and our balance sheet strengthen further,” said Mike Wirth, Chevron’s chairman and chief executive officer. The company’s debt ratio and net debt ratio declined to 16.7 and 10.8 percent, respectively. “Chevron is doing its part to grow domestic supply with U.S. oil and gas production up 10 percent over first quarter last year,” Wirth continued. Chevron’s worldwide net oil equivalent production in the first quarter was 3.06 million barrels per day. Permian Basin unconventional production grew to a record 692,000 barrels of oil equivalent per day in the first quarter, as the company raised its 2022 guidance to 700,000 – 750,000 barrels per day, an increase of over 15 percent from 2021.
“Consistent with our plans, we’re investing to grow both traditional and new energy business lines,” Wirth added. The company’s capital expenditures during the quarter increased to $2.8 billion, 10 percent higher than last year. The total of full-year capital spending and announced acquisitions is expected to be more than 50 percent higher than 2021. Chevron accelerated plans to grow its renewable fuels business with the announced agreement to acquire Renewable Energy Group, Inc. and the signing of definitive transaction agreements with Bunge North America, Inc. The company also advanced its hydrogen, carbon capture and offsets businesses with an agreement with Iwatani Corporation of America to build 30 hydrogen fueling stations in California, an investment in Carbon Clean, a global leader in cost-effective industrial carbon capture, and an agreement with Restore the Earth Foundation, Inc. on a carbon offsets reforestation project of up to 8,800 acres in Louisiana. The company also closed its previously announced agreement with Neste Corporation to acquire its Group III base oil business and NEXBASETM brand on 1 April 2022, strengthening its position as a leading supplier of premium base oils. “While we continue to respond to the energy-related challenges of today, we are deeply saddened by the tragic events in Ukraine and hope for a peaceful resolution soon,” Wirth concluded.