Chevron Beats Market Expectations with 5% Increase in Q1 2023 Net Profit Thanks to Strong Refining Business

Chevron Stock

Chevron Corp. News:

Chevron Corp, the second-largest U.S. oil company, has beaten market expectations in the first quarter of 2023. Despite a slide in energy prices and oil and gas production, the company has reported a 5% increase in net profit to $6.57 billion, or $3.46 per share. The standout business for Chevron was oil refining, where higher margins helped income surge more than five-fold to $1.8 billion.

The company’s earnings from refining helped compensate for the decline in energy prices and production, and it ended the quarter with $15.8 billion in cash. Although this is down 12% from a year ago, it is still $10 billion above what the company needs to run its business.

Chevron has been increasing production in the United States while decreasing it elsewhere. Total output fell 3% from a year ago to 2.98 million barrels of oil and gas per day due to a contract expiration in Thailand and the sale of South Texas shale properties.

The company’s strong performance in refining is notable, given that the refining industry has been struggling in recent years due to a global oversupply of oil and declining demand. Chevron’s success in this area is due in part to its focus on upgrading and expanding its refineries, as well as its ability to process cheaper, heavier crude oil.

Chevron’s focus on refining has helped it weather the downturn in the energy industry, which has been hit hard by falling oil prices and declining demand due to the COVID-19 pandemic. The company has also been investing in renewable energy, with plans to increase its renewable energy portfolio to 25% of its total investment by 2025.

Despite the challenges facing the energy industry, Chevron’s solid financial performance in the first quarter of 2023 is a positive sign for the company and the industry as a whole. The company’s focus on refining and its investments in renewable energy suggest that it is positioning itself for long-term success, even as the energy landscape continues to evolve.

Chevron Corp Stock Forecast:

According to the average forecast of 24 analysts, Chevron Corp’s target stock price over the next 12 months is USD 193.75, and the average analyst rating for the stock is “Buy.” Stock Target Advisor’s analysis of Chevron Corp’s stock is “Slightly Bullish,” based on 6 positive signals and 5 negative signals. As of the last closing, the stock price for Chevron Corp was USD 166.95, which is a decrease of -1.71% over the past week. However, the stock price has increased by +5.90% over the past month and +6.85% over the last year.

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