Chevron still beats expectations despite fall in profits
By Josh White
Date: Friday 30 Jan 2026
(Sharecast News) - Chevron reported a decline in fourth-quarter and full-year profits in 2025 as lower oil prices and currency headwinds weighed on results, but the US oil major still beat market expectations on earnings, delivered record production and raised its dividend, underlining confidence in cash generation and future growth.
The energy giant said net income for the fourth quarter fell to $2.8bn, or $1.39 per share, from $3.2bn a year earlier, while adjusted earnings declined to $3bn, or $1.52 per share, comfortably ahead of analysts' forecasts.
Revenue slipped 10% year-on-year to $46.9bn.
The results were hit by weaker crude prices, lower affiliate earnings and foreign-exchange effects, partly offset by stronger refining margins, higher sales volumes and lower severance costs.
Operationally, 2025 marked a milestone year.
Worldwide production rose 12%, with US output up 16%, both at record levels, supported by the integration of Hess, strong growth in the Permian Basin and start-ups in Kazakhstan, Guyana and the deepwater Gulf of Mexico.
Total production averaged about 4.05 million barrels of oil equivalent per day in the fourth quarter, up roughly 21% from a year earlier.
Proved reserves climbed to around 10.6 billion barrels of oil equivalent, delivering a reserve replacement ratio of 158%, largely driven by the Hess acquisition and shale and offshore project approvals.
Cash flow from operations reached $10.8bn in the quarter, while adjusted free cash flow totalled $4.2bn.
For the full year, Chevron returned $27.1bn to shareholders through dividends, buybacks and Hess share purchases, and announced a 4% increase in its quarterly dividend to $1.78 per share, marking its 39th consecutive annual dividend rise.
Management highlighted Venezuela as a potential upside.
Chevron, the only US oil major operating in the country under a special US Treasury licence, said it could increase Venezuelan production by about 50% over the next 18 to 24 months if conditions allowed, following Washington's recent armed intervention in the country's leadership and proposed reforms aimed at attracting foreign investment.
Chief executive Mike Wirth said the company was committed to supporting Venezuela's energy sector while strengthening US and regional energy security.
Despite the production gains, upstream earnings declined year on year, with US upstream profit down to $1.26bn and international upstream earnings falling to $1.78bn, reflecting lower realised prices and currency effects.
Downstream performance improved, particularly in the United States, as higher utilisation, stronger product margins and cost discipline lifted refining profits.
0716 ET (1216 GMT), shares in Chevron Corporation were down 0.22% in premarket trading in New York at $170.75.
Reporting by Josh White for Sharecast.com.
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