High oil prices combined with strong refining business Chevron (CVX.US) Q3 net profit soared 180% year over year

The Zhitong Finance App learned that before the US stock market on Friday, Chevron (CVX.US) announced the results for the third quarter of 2026. Driven by high oil prices and record gross profit from US refining, the company's profit rose to the fourth highest in history and completely exceeded analysts' expectations.

According to financial reports, Chevron's net profit attributable to shareholders for the third quarter was 9.9 billion US dollars, up about 180% from 3.5 billion US dollars in the same period last year; adjusted earnings per share were 5.28 US dollars, which was 35 cents higher than analysts' average expectations. Although the company reduced the share buyback scale to $2.5 billion, it is still within the guidance range for the whole year.

The refining business is a key engine for Chevron to exceed expectations this season. The business's third-quarter profit reached 4.93 billion US dollars, a record high, about four times that of the same period last year. The conflict between Iran and Ukraine has led to the withdrawal of up to 10% of the world's refining capacity, driving fuel prices to rise sharply globally.

In terms of capital allocation, Chevron mainly used excess profits for debt reduction for the second consecutive quarter, and was more conservative than Shell and Repsol (Repsol) — both of which raised the repurchase scale by more than 65%.

“We don't respond to market rises or falls, and we don't adjust our strategies at will.” Chief Financial Officer Eimear Bonner said in an interview. Currently, we are sticking to our long-standing financial priorities without making any changes.”

In terms of production, thanks to the acquisition of Hess last year, Chevron achieved a year-on-year increase in production, thereby fully benefiting from the year-on-year increase in international crude oil prices of about 34%. The Hess deal gave Chevron a 30% interest in Guyana's high-yield Stabroek block operated by ExxonMobil.

Chevron expects Venezuela's production to reach 300,000 barrels per day by the end of this year, up 20% from a year ago. The company costs less than $20 a barrel in Venezuela, making it one of the most profitable oil producing regions in the world.

Bonner said the Venezuelan project “can bring immediate benefits and generate positive free cash flow.” “We're not concerned about the ability to expand production.”

As of press time, Chevron is up 1.3% in the premarket.