Key Takeaways
- Chevron’s second-quarter revenue beat estimates but earnings missed expectations.
- The company said it increased global oil production 11% from the same time last year, but lower margins on its refined products squeezed its earnings.
- Chevron also announced plans to move the company’s headquarters to Houston, Texas from San Ramon, California.
Chevron (CVX) reported better second-quarter revenue than analysts expected Friday, but profits missed estimates, thanks to lower margins on the oil and gas giant’s refined products.
The company’s global oil production rose 11% from the same time last year, lifting revenue above analysts’ estimates to $51.18 billion. However, net income dropped over 25% year-over-year to $4.43 billion, nearly $1 billion below projections.
Lower Refining Margins Hit Profits
“Second quarter 2024 earnings decreased compared to last year primarily due to lower margins on refined product sales, the absence of prior year favorable tax items and negative foreign currency effects,” the company said.
Chevron rival ExxonMobil (XOM) reported Friday as well, and cited lower refining margins as a reason its earnings fell from the same time last year.
Chevron Moving Headquarters To Texas
Chevron also announced plans Friday to move its headquarters to Houston, Texas from San Ramon, California, and said it expects “all corporate functions” to shift to Texas within the next five years.
The move comes after Chevron criticized policies in California that it said are against the industry’s interests.
Chevron shares were down1.7% to $150 in pre-market trading Friday following the release.