On Friday, Chevron Corp announced that it is implementing measures to optimize its portfolio and cut operating costs following a decline in third-quarter profits.
Chevron profit falls as oil price down
The Houston, Texas-based oil and gas company reported a 31% drop in net profit to $4.50 billion in the third quarter of 2024, down from $6.56 billion the previous year.
Revenue also fell by 6.3%, reaching $50.67 billion compared to $54.08 billion. Chevron's International Upstream unit reported a realized price of $70.59 per barrel in the third quarter, a decrease of 6.7% from $75.64 a year earlier.
Chevron declared a quarterly dividend of $1.63 per share, maintaining the same payout as the second quarter.
Outlook remains positive
Looking ahead, the company aims to increase production in the U.S. Gulf of Mexico to 300,000 barrels of net oil equivalent per day by 2026.
Chief Executive Officer Mike Wirth stated that the company is "taking steps to optimize our portfolio and reduce operating costs to deliver superior long-term value to shareholders." He noted that Chevron expects to finalize asset sales in Canada, Congo, and Alaska in the fourth quarter of 2024, as part of a strategy to divest $10-15 billion in assets by 2028. Additionally, the company is pursuing cost reduction initiatives, targeting $2-3 billion in structural cost savings by the end of 2026.
