Chevron’s Earnings Miss Estimates, Squeezed by Lower Refining Margins

Chevron (CVX) reported amended second-quarter revenue than analysts expected Friday, but profits missed estimates, acknowledgment to little margins connected nan lipid and state giant's refined products.

The company's world lipid accumulation roseate 11% from nan aforesaid clip past year, lifting gross supra analysts' estimates to $51.18 billion. However, net income dropped complete 25% year-over-year to $4.43 billion, astir $1 cardinal beneath projections.

Lower Refining Margins Hit Profits

"Second 4th 2024 net decreased compared to past twelvemonth chiefly owed to little margins connected refined merchandise sales, nan absence of anterior twelvemonth favorable taxation items and antagonistic overseas rate effects," nan institution said.

Chevron rival ExxonMobil (XOM) reported Friday arsenic well, and cited little refining margins arsenic a logic its net fell from nan aforesaid clip past year.

Chevron Moving Headquarters To Texas

Chevron besides announced plans Friday to move its office to Houston, Texas from San Ramon, California, and said it expects "all firm functions" to displacement to Texas wrong nan adjacent 5 years.

The move comes aft Chevron criticized policies successful California that it said are against nan industry's interests.

Chevron shares were down1.7% to $150 successful pre-market trading Friday pursuing nan release.