Chevron aims to reach new heights

Chevron announced record quarterly earnings at the end of July. These results were made possible by strong fuel margins and high natural gas and oil prices. The company also  increased its share buyback plan.

Chevron has planned the commencement of the record-breaking buyback programme, following the example of other biggest oil companies that decided to increase share buyback programme this week. The main goal was to earn the trust of investors seeking larger profits.

The Chief Financial Officer Pierre Breber expressed hope that the company would be able to set higher dividend payouts, increase the amount of electricity generated from renewable and conventional energy sources, minimize the debt of the company, and conduct stock buyback.

The electricity demand has increased dramatically over the past 12 months. However, consumers from all over the world are suffering from record high natural gas and fuel prices. According to global economic data, some economies experience a slowdown in economic growth, which can result in the destruction of demand.

According to the results for the quarter, the average oil and liquefied natural gas price in the USA steamed up to $89, compared to $54 a year ago. The international sales price for oil is $102 per barrel, up from $62 a year earlier. The company executives claim that two years of the COVID-19 pandemic still have a great impact on consumers. 

"I believe that the demand will be less affected by recession in the future," Breber said during a webcast. 

The energy company upsized its share buyback program to $15 billion from $10 billion. This corresponds to the plan set by its American competitor Exxon.

"The increased buyback program together with the strong balance sheet was a pleasant surprise," said Philip Jungwirth, analyst at BMO Capital Markets.

Meanwhile, Chevron is increasing investments and expanding its presence in the USA.

"We have more than doubled our investments compared to last year to develop both traditional and new energy business lines," said Michael Wirth, the company's CEO.