Chevron's Earnings Get $2 Billion Boost from Tax Law

   By Cara Lombardo 
 

Chevron's earnings rose in the latest quarter, driven by the impact of the new U.S. tax law.

Chevron reported a profit of $3.1 billion, or $1.64 a share, compared with $415 million, or 22 cents a share, a year ago. The earnings included a $2 billion tax benefit due to changes in the U.S. tax law.

The oil giant's fourth-quarter revenue increased 19% from a year ago to $37.6 billion, which is what analysts polled by Thomson Reuters had expected.

Chief Executive Michael Wirth, in his second day in the post, said the company has been reducing capital expenditures, cutting costs and ramping up new projects. He also said higher commodity prices helped results.

The oil giant added about 1.54 billion barrels of net-oil equivalent proved reserves in 2017, or about 155% of the amount it produced, with the largest additions coming from the U.S.'s Permian Basin and the Gorgon project in Australia.

Chevron's production increased about 5% in 2017, including the effect of asset sales. The company expects it to increase by 4% to 7% in 2018.

The company's board of directors approved a dividend increase of 4 cents, bringing the quarterly dividend payable in March to $1.12 per share.

Chevron shares, up 12% in the past year, slid 2.2% in premarket trading.

Write to Cara Lombardo at [e-mail]

(END) Dow Jones Newswires

February 02, 2018 09:25 ET (14:25 GMT)

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