Chevron’s stock price declines as revenue fell short of estimates

The shares of Chevron are down by more than 3% on Friday after the company's earnings result fell short of analysts' expectations.

Chevron, one of the leading oil companies in the United States, reported its fourth-quarter earnings earlier today. The company recorded profits in the previous quarter, but it fell short of analysts' estimates.

The revenue recorded was $48.13 billion, which is higher than the expected $45.69 billion. However, Chevron earned $2.56 per share in the fourth quarter, which is lower than the $3.12 per share expected by market analysts.

For the full 2021 fiscal year, Chevron recorded $21.1 billion in revenue and reduced its debt by $12.9 billion. The oil giant earned a total of $15.6 billion in 2021, compared to a loss of $5.5 billion in 2020.

Earlier this week, the company increased its quarterly dividend by eight cents, or about 6%, to $1.42 per share. Chevron pointed out that this is the 35th consecutive year it has increased its payout to shareholders.

Chevron's cash flow from operations in 2021 was $29.2 billion, which is nearly triple the $10.6 billion recorded in 2020.

Following its earnings report, the shares of Chevron are down by more than 3%. At press time, CVX is trading at $131.83.

Despite its recent poor performance, the shares of Chevron have increased by more than 13%, outperforming numerous companies in its sector.

Chevron's fourth-quarter results are better than the loss of one cent per share on an adjusted basis recorded in the same quarter of 2020.

Chevron, like other leading oil companies, suffered huge losses in 2020 due to the Coronavirus pandemic. The company said worldwide net oil-equivalent production declined by nearly 5% in 2021 to 3.12 million barrels per day.

The oil giant's average sales price per barrel of crude oil and natural gas liquids in the United States nearly doubled over the past year. The sales surged to $63 during the fourth quarter, up from $33 recorded the year before.