Chevron and Exxon both posted profits for the second quarter in a row on Friday, owing to increased demand for petroleum products and higher oil and gas prices. Chevron also renewed its share repurchase programme, indicating that the company is optimistic about its future earnings. On an adjusted basis, the oil giant earned $1.71 per share in the second quarter, with revenue of $37.6 billion.
According to Refinitiv projections, analysts expected the company to earn $1.59 per share on $35.94 billion in revenue. The corporation earned 90 cents per share on an adjusted basis in the first quarter of 2021, with revenue of $32.03 billion. During this time, Exxon also outperformed top- and bottom-line expectations. According to Refinitiv estimates, the company earned $1.10 per share, compared to Wall Street’s expectation of 99 cents.
Revenue came up at $67.74 billion, beating expectations of $66.81 billion. Exxon made a profit last quarter, ending a four-quarter losing streak. On $59.15 billion in revenue, the corporation earned 65 cents per share excluding items. Chevron Chairman and CEO Mike Wirth said in a statement, “Our free cash flow was the highest in two years due to solid operational and financial performance and lower capital spending. We will resume share repurchases in the third quarter at an expected rate of $2- $3 billion per year.”
The findings of the two corporations are a far cry from those of the same period a year ago, when the pandemic slashed demand for petroleum goods. Chevron lost $1.59 per share on adjusted revenue of $13.49 billion in the second quarter of 2020. On an adjusted basis, Exxon lost 70 cents per share on $32.61 billion in revenue. Nonetheless, the oil behemoths warned that capital investment plans should be approached with prudence.