US oil giant Chevron has reported earnings of $6.6 billion for first quarter 2023, improving on the $6.3 billion net profit posted in first quarter of 2022.
Helped by higher sale margins on refined products, the California-based supermajor managed to lift earnings even higher than the $6.4 billion posted in the final quarter of 2022, when oil and gas prices were soaring.
Included in the quarterly report was a $130 million tax charge related to changes in the energy profits levy in the UK.
Adjusted earnings of $6.7 billion in first quarter 2023 compared to $6.5 billion in first quarter 2022.
In its quarterly statement, released on Friday, Chevron reported total revenues of $51 billion, compared with $54,4 billion in the first quarter of 2022, primarily due to lower commodity prices.
The company noted that upstream realisations fell from the immediately preceding fourth quarter, with drops of 11% for oil and 48% for natural gas.
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Cash flow from operations totalled $7.2 billion in the quarter and free cash flow came to $4.2 billion.
“We’re delivering strong financial results and increasing cash returned to shareholders,” said Chevron chief executive Mike Wirth.
“The company’s return on capital employed has been greater than 12% for seven consecutive quarters, and the company returned $6.6 billion to shareholders in the first quarter, an increase of 65% from last year.”
The company increased its dividend per share by approximately 6% in the first quarter and shareholder distributions of $6.6 billion, were up 65% from first quarter of 2022.
Chevron recently increased its targeted annual share repurchase rate to $17.5 billion.
Chevron’s net oil-equivalent production was down 3% from the same quarter one year ago to 1.812 million barrels of oil equivalent per day due, primarily, to a reduction of 64,000 bpd in Thailand, where the Erawan concession ended.
Capital expenditure of $3 billion for the quarter was 55% higher on the year, boosted by higher spending in the United States.