Chevron, ExxonMobil report surge of combined $13 billion in earnings

Oct. 29 (UPI) -- Just days before the start of a key United Nations conference on climate change, oil companies Chevron and ExxonMobil on Friday reported a major surge in earnings during the most recent fiscal quarter.

Chevron reported $6.1 billion in earnings for the third quarter, compared to a substantial loss of $207 million in the same quarter last year.

The company reported an operational cash flow of $8.6 billion and a record free cash flow of $6.7 billion.

"Third-quarter earnings were the highest since first quarter 2013 largely due to improved market conditions, strong operational performance and a lower cost structure," Chevron CEO Mike Wirth said in a statement. "We paid dividends of $2.6 billion, reduced debt by $5.6 billion, and repurchased $625 million of shares during the quarter."

The company's earnings easily beat most analysts' expectations.

The sound earnings from two of the world's largest oil companies came ahead of the G20 Leaders Summit in Italy this weekend and the United Nations Climate Change Conference, or COP26, next week.

For ExxonMobil, third-quarter earnings amounted to $6.8 billion -- compared to a $680 million loss in Q3 in 2020.

"All three of our core businesses generated positive earnings during the quarter, with strong operations and cost control, as well as increased realizations and improved demand for fuels," ExxonMobil CEO Darren Woods said in a statement.

ExxonMobil's free cash flow was able to cover dividends and $4 billion of additional debt reduction, it added.

The sound earnings from two of the world's largest oil companies came ahead of the G20 Leaders Summit in Italy this weekend and the United Nations Climate Change Conference, or COP26, next week.

Experts and officials say the U.N. summit is one of the last best chances for world leaders to take coordinated action to get on track to reach environmental goals set out in the Paris Agreement.