Chevron shares slip as refining profits tumble, earnings disappoint
Published: 12:02 31 Jan 2025 EST
Chevron Corporation (NYSE:CVX, ETR:CHV) shares fell 3.6% on Friday morning following the release of its fourth-quarter 2024 earnings report, which revealed a decline in profits and the company's first refining loss in four years.
The energy giant reported an adjusted earnings per share (EPS) of $2.06, falling short of analysts' expectations of $2.11 and marking a 40% decrease from the same period last year.
Despite this, Chevron's revenue rose by 10.7% to $52.23 billion, surpassing forecasts.
The downstream segment, encompassing refining operations, reported a loss of $248 million, a significant downturn from the $1.15 billion profit recorded in the same quarter the previous year, which Chevron attributed to lower margins on refined product sales and increased operating costs.
In contrast, Chevron's upstream operations, which include exploration and production, saw earnings rise to $1.42 billion, driven by record production levels. The company also announced a 5% increase in its quarterly dividend to $1.71 per share and repurchased over $15 billion in shares during 2024.
CEO Mike Wirth highlighted significant achievements in 2024, including record production, substantial shareholder returns, and the initiation of growth projects in the Gulf of Mexico and Kazakhstan.
The company also conducted asset sales in Canada, the Republic of Congo, and Alaska, acquired Hess Corp., and introduced a cost-cutting plan to reduce expenditures by $2-3 billion by the end of 2026.
