Chevron reported a drop in fourth-quarter profit during its earnings call on Friday, as lower oil prices and weaker upstream earnings outweighed gains in refining margins and higher production.
The U.S. oil major posted net income attributable to shareholders of US$2.77 billion, or US$1.39 per share, for the three months ending December 31, down from US$3.24 billion, or US$1.84 per share, a year earlier. Earnings accounted for US$128 million in pension settlement costs and US$130 million in negative foreign currency effects. Adjusted earnings were US$3.0 billion, compared with US$3.6 billion in the same quarter of 2024.
Chevron’s first post-Hess capex plan shows strong offshore push in Guyana | OilNOW
Chevron said cash flow from operations rose to US$10.8 billion in the quarter from US$8.7 billion a year earlier, supported by higher production and contributions from assets acquired through its takeover of Hess. Adjusted free cash flow totaled US$4.2 billion, down from US$8 billion a year earlier.
Worldwide net oil-equivalent production averaged 4.05 million barrels per day (b/d), up sharply from 3.35 million b/d in the fourth quarter of 2024, driven largely by the Hess acquisition and project ramp-ups in multiple jurisdictions. The company said its average realized Brent price fell to US$64 a barrel from US$75 a year earlier.
Upstream profit fell to US$3.04 billion from US$4.3 billion a year earlier, while downstream operations swung to a profit of US$823 million from a loss of US$248 million.
Chevron to build on momentum in post-Maduro Venezuela, as Trump promises windfall | OilNOW
Chevron raised its quarterly dividend by 4% to US$1.78 per share, marking its 39th consecutive annual increase, and said it repurchased US$3.0 billion of shares during the quarter. For the full year, the company returned US$27.1 billion to shareholders through dividends and buybacks.
“2025 was a year of significant achievement. We successfully integrated Hess, started up major projects, delivered record production and reorganized our business. This resulted in industry-leading free cash flow growth and superior shareholder returns, despite declining oil prices,” Mike Wirth, Chevron’s Chairman and Chief Executive Officer, said.
