Chevron missed second-quarter earnings expectations, hurt by lower refining margins.
The oil major also said Friday it is moving its headquarters from San Ramon, California, to Houston, Texas, with CEO Mike Wirth relocating by end the of 2024. All corporate functions will move to Houston over the next five years.
Chevron’s stock fell 1.65% in early trading.
Here is what Chevron reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.55 adjusted vs. $2.93 expected
- Revenue: $51.18 billion vs. $50.8 billion expected
Chevron’s net income declined 26% to $4.43 billion, or $2.43 per share, compared with $6.01 billion, or $3.20 per share, in the same period a year ago. When adjusting for $243 million in foreign currency impacts, Chevron booked adjusted earnings of $2.55 per share.
Revenue rose to $51.18 billion from $48.9 billion a year ago.
The oil major’s U.S. production segment posted a profit of $2.16 billion, a 31% increase over $1.64 billion in the year ago period on higher sales volumes and oil prices.
Profits for international production fell about 30% to $2.3 billion compared with $3.29 billion in the year-ago period due to lower sales and natural gas prices as well a negative foreign currency impacts.
Overall, Chevron’s global oil-equivalent production rose 11% to 3.29 million barrels per day on record production in the Permian Basin
The U.S. refining business realized a profit of $280 million, a 74% decrease compared with the the $1.1 billion posted in the year-ago period due to lower margins. International refining profits fell 25% to $317 million, compared with $426 million in the same quarter last year.
Chevron’s second-quarter results come after the oil major’s pending acquisition of Hess suffered a major blow this week.
Chevron and Hess disclosed Wednesday that an arbitration panel will not hold a hearing until May 2025 on ExxonMobil’s claims to a pre-emptive right over Hess’ lucrative oil assets in Guyana.
A decision in the case would come three months after the hearing, which means the Chevron-Hess deal would not close until well into next year if they prevail in arbitration. The companies had originally intended to close the transaction this year.
Chevron shares closed nearly 5% lower Thursday and Hess stock fell nearly 8%. In the year to date period, Chevron’s stock has underperformed the market with a 2.3% gain.