US oil major Chevron showed how the industry has turned a corner by posting yearly profits of $15.6bn (£11.55bn) for 2021.
In 2020, the company made a $5.5bn (£4.07bn) loss due to pandemic-related restrictions decreasing the demand for petroleum products.
The company also raised its hydrocarbons production to an all-time high of 3.1 million barrels of net oil-equivalent per day (bpd), while also increasing its proven reserves by 1.3 billion barrels thanks to assets in the Gulf of Mexico, the Permian Basin and Australia. Both its upstream and downstream businesses performed much better than in 2020. In addition to its upstream business, Chevron also makes automotive and industrial lubricants like grease, gas engine oil, and hydraulic oil under the Texaco brand.
The chairman and CEO of Chevron, Mike Wirth, said in a press release:
“In 2021, we delivered record free cash flow and accelerated our progress towards a lower carbon future. We’re an even better company than we were just a few years ago. We’re more capital and cost efficient, enabling us to return more cash to shareholders.”
Chevron also made a start toward the 35th year in a row in which the company will have increased its annual dividend award with a quarterly dividend rise of about 6%. Despite the result representing an important turnaround, the final-quarter earnings fell short of analysts’ expectations of $3.12 per share, causing the share price, which had risen to $136 prior to the results being announced, to fall by 4%.
