Chevron reported second-quarter earnings on Friday that missed Wall Street estimates due to industry-wide pressure from lower refining margins and natural gas prices, sending its shares down 1.5% in premarket trading, APA reports citing Reuters.
The company earlier had warned oil output this quarter would slip and refining would suffer from turnarounds at two refineries in California. Refining margins have been weak globally, hurting other oil majors like BP and Shell.
Chevron said it would relocate the company's headquarters from San Ramon, California, where it was born 145 years ago as Pacific Coast Oil Co., to Houston, Texas. The company has been bitterly contesting state regulations on its oil producing and refining operations in the state.
Chevron reported earnings of $4.4 billion, or $2.43 per share, in the quarter, compared with $6 billion a year before.
It reported adjusted earnings of $4.7 billion, or $2.55 per share, compared to adjusted earnings of $5.8 billion, or $3.08 per share, in second quarter 2023.
Wall Street analysts expected earnings per share of $2.93, according to LSEG data.
Earnings from pumping oil and gas were down 9.4% from a year earlier. Profit from producing gasoline and chemicals was also down about 60% to $597 million.
"Despite recent operational downtime and softer margins, we remain poised to deliver significant long-term earnings and cash flow growth," CEO Mike Wirth said.
Prices for oil and gas were mixed in the quarter. The average Brent crude oil price was up about 8% in the quarter while U.S. gas prices slipped 10%, both versus a year ago.
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