The US oil company Chevron achieved an adjusted earnings per share (EPS) of $2.51 in the third quarter of its 2024 fiscal year, surpassing analysts' estimates of $2.40. Despite a decline in EPS from $2.47 in the same quarter of the previous year, Chevron is proving to be more profitable than ever.

The revenue rose compared to the previous year to $9.1 billion, after the company had generated $9.374 billion in the same period. Although the revenue exceeded expectations of $9.074 billion, Chevron did not significantly miss analysts' revenue forecasts. This positive development contrasts with the mixed results of European competitors such as Shell, BP, and TotalEnergies, while the US rival ExxonMobil also exceeded expectations.

Despite the drop in oil prices since April, Chevron remains committed to its strategy of rewarding shareholders with generous dividends and substantial share buybacks. In the third quarter, the company invested $7.7 billion in dividends and buybacks, although the free cash flow was only $5.6 billion. Chevron plans to repurchase $17.5 billion worth of its own shares annually and is considering taking on debt to do so, as the debt ratio is below the mid-term target.

The Chevron stock responded to the positive quarterly figures with a temporary increase of 3.12 percent to $153.46 on the NYSE. Nevertheless, the management is under pressure as the stock has performed significantly worse this year compared to Exxon, whose stock price has risen by about 17 percent. While Chevron lingers at its early-year level, Exxon stagnates and benefits greatly from the current market conditions.

To further stabilize its finances, Chevron is currently selling numerous assets to generate a total of 15 billion US dollars by 2028. These sales are also expected to reduce structural costs by up to 3 billion US dollars. In an interview with Bloomberg, CEO Mike Wirth emphasized that, in addition to asset sales, new technologies and improved processes should also contribute to cost reduction, which could potentially lead to job cuts in the USA.

This comprehensive measures demonstrate that Chevron is determined to strengthen its market position and remain profitable in the long term despite the challenges posed by falling oil prices and intense competition in the energy sector. The ability to continue achieving positive results through strategic investments and cost efficiency will be crucial in maintaining investor confidence and securing the company's competitiveness.