Chevron posts mixed Q4 2021 earnings results

Chevron Corporation (NYSE: CVX) has announced its Q4 2021 results in which earnings were $5.1 billion or $2.63 per diluted share relative to a loss of $665 million or $0.33 per diluted share a year ago. In addition, the oil and gas company had adjusted earnings of $4.9 billion or $2.56 per diluted share, missing consensus earnings estimates of $2.99 per share.

The company includes asset gains of $520 million, pension settlement fees of $82 million, and losses in debt retirement of $260 million in the current quarter earnings. In addition, foreign currency impacts dropped earnings by $40 million.

Chevron reports earnings of $15.6 billion for FY 2021

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For the full year, the company has earnings of $15.6 billion or $8.14 per share relative to $5.5 billion or $2.96 per share in fiscal 2020. Adjusted earnings in fiscal 2020 were $15.6 billion or $8.13 per share relative to adjusted earnings of $172 million or $0.09 per share in 2020.

The company reported revenue of $48.13 billion in the fourth quarter compared to $25 billion in Q4 2020. Chevron topped Q4 2021 consensus revenue estimates of $4.52. Chairman and Chief Executive Officer of Chevron Mike Wirth commented:

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 raised this Q1 2022’s dividend by 6%

Chevron upped its quarterly dividend by 4% to $1.34 per share in 2021, repurchasing $1.4 billion of its stock while boosting its return on invested capital to 9.4% and lowering debt by $12.9 billion. Earlier this week, the business increased its dividend per share by 6% to $1.42 and guided first-quarter 2022 repurchases to its $3 billion to $5 billion yearly target range.

The company is progressing towards a low carbon future and has set targets to cut carbon intensity to operation. Chevron adopted a 2050 net-zero goal for upstream scope one and two emissions and expanded the renewables fuel operations. Wirth concluded:

We’re delivering greater value to stockholders today, while working to meet the world’s growing energy demands in a lower carbon future.