Chevron resumes it share buyback program

Chevron (NYSE: CVX) resumes its share buybacks after the company reported higher-than-expected earnings for the second quarter on rising commodity prices. Chevron on Friday reported adjusted earnings of $ 3.3 billion, or $ 1.71 per diluted share, for the second quarter of 2021. That's in line with analysts' consensus estimate compiled by The Wall Street Journal of $ 1.59 earnings per share (EPS). Chevron's profits in the second quarter of 2021 compare to a loss of $ 2.9 billion in the second quarter of 2020, when the collapse in markets and demand affected the revenues and profits of all of the world's major oil companies. However, in the past quarter, major oil companies posted strong profits thanks to soaring oil prices and recovering fuel demand in the United States and around the world. Chevron's sales and other operating income skyrocketed to $ 36 billion in the second quarter of 2021, from just $ 16 billion in the same period last year. In the U.S. upstream business, Chevron made $ 1.4 billion in the second quarter of 2021, compared to a loss of $ 2.1 billion a year earlier. The improvement was primarily due to higher crude oil revenues and the absence of impairments, depreciation and severance pay provisions. Higher crude oil production also contributed to Chevron's upstream results in the US. The U.S. downstream business was also profitable in the second quarter of 2021, with a profit of $ 776 million, compared with a loss of $ 988 million a year earlier. "The second quarter results were strong, reflecting the improved market conditions combined with transformation advantages and merger synergies," said Mike Wirth, Chairman and CEO of Chevron, in a statement. "Our free cash flow was the highest in two years thanks to solid operational and financial performance and lower capital expenditures," added Wirth. "We'll resume share buybacks in the third quarter at an expected rate of $ 2-3 billion per year." Chevron joins other international oil companies like Shell and TotalEnergies, which also announced share buybacks this week after reporting significant earnings growth for the second quarter of 2021. After the results were released, Chevron's shares rose 2 percent in pre-trading in New York on Friday.